QuestionI was a victim of an automobile accident in June of 2010. There were three other cars involved and I was the last person that was hit in the sequence of the collision. A police report is already on file with all insurance companies proving that I was not at fault. I took my car to the auto shop immediately after the accident and rented a vehicle from Enterprise (rental documents were faxed directly from Enterprise and I followed up with emailing them to the insurance companies as well. The auto shop, had my vehicle for repairs from June 25th –July 30th 2010. The entire time my vehicle was at the shop, Allstate’s adjuster, was aware and heavily involved in the matter. My car was picked up from the auto shop and rental returned to Enterprise on the same day that the repairs were complete.
I was told by Enterprise that my coverage would only cover $597.66 and the rest would have to be placed on my credit card. I spoke with Allstate to discuss my options and was told that the only thing I could do was pay out-of-pocket and wait for reimbursement, get a ride to work, or public transportation. I am now being told that I will not get reimbursed the rental fee because it is “unclear why the auto shop had your car so long”. I am unsure how there could be any confusion with this when everything has been clearly documented and I have been on the phone with Allstate several times each month in regard to this claim. If the car was being fixed from June 25th-July 30th, there is no way that I could have had the car at my home. I will also include the fact that there were no premium vehicles available at the Enterprise lot so I drove around in a car that was not even comparable to my own.
I was informed that it could take from six to nine months for reimbursement which then changed to “nine to twelve months” which now has changed to “subrogation can take from one to three years” and that I’ll get the deductible but not the rental amount. I have had many issues throughout this claim process and have actually been told to “contact USAA” (which I did to get the ball rolling). I have paid my house and auto insurance through Allstate (in full) each year and have never had any issues with paying my bill but instead of doing the job of protecting me, I’m instructed to call another insurance company and finally informed that I’ll have to lose $426.90.
AnswerHello Jill,
Wow ...
Now to help you sort through this ...
Apparently you filed a claim with your carrier, Allstate. I am sure you had reasons for this, most logically to expedite the process. But the at fault insurance company (apparently USAA) was actually obligated to pay your under the property damage liability (PLD)coverage for the at fault driver. I am assuming that only one driver was at fault, so that policy would be responsible for all damages.
Your collision coverage obviously paid for your damages. If you had been at fault, that would be the end of it. But since you were not at fault, your company will now subrogate the other company (USAA) for the amount that it paid. That company, however, is under no obligation to pay out amounts greater that the amount of the coverage. For example, if the USAA driver had $25,00 of PLD coverage, this is alal they are obligated to pay regardless of the amount damage to the not at fault vehicles.
A few points ...
Your adjuster really dropped the ball by not requiring the body shop to expedite your repairs. In fact, if the body shop was just delaying for no reason (which would appear to be clearly the case here), Allstate should have notified them that after so many days the body shop - not their policy holder - would be responsible for overcharges. If it were me, I would not let this issue die! Have you confronted the body shop?
As to subrogation, in my experience, this does not take anywhere near the time frames given. Maybe a month or two.
So you are not entitled to rental reimbursement because Allstate dropped the ball and let your limits expire? Why is the other company not obligated to pay the balance? Is it because their limits were exhausted before your needs could be met? You need to find out.
I don't know how far you want to go with this, but it does not seem at all reasonable to me that you should be caught on the short end of this.
First, be persistent with USAA. Find out exactly why they are not obligated to pay you for your rental. I suggest you be persistent in writing.
Do the same with Allstate. Do it in writing to the supervisor or manager of the adjuster on your claim. Ask them for more explanation as to why subrogation is so time consuming and why your adjuster, who was "heavily involved", allowed your benefits to expire to your own peril.
Be persistent.
If you need more in depth help, and if you are willing to fall on the sword for this one, you might consider spending $19.95 for my help book. It gives detailed instructions on how to take control of out of control claims. You can read about the book, as well as additional articles, at my website. http://SolutionsForYourInsuranceClaim.com
Good luck
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
