QuestionQUESTION: Hope you can help - sorry for the long-windedness.
I was rear-ended on a California freeway 10/28/10. The insurance company of the party at fault is refusing to reimburse for the total number of days a rental car was needed.
I was towed to a repair place approved by my insurance company. During the time of repair I was in frequent contact with the auto shop. Several parts needed were on back order and and then additional damage was found. In addition, the period of repair spanned over the Thanksgiving holiday when the shop would reasonably be closed. The repair took 37 days (over 6K in damage).
I was not able to contact the opposing insurance company because the police report was not completed until 11/15 and not received by my insurance company until 11/22. At this time I called the opposing insurance company. We discussed procedure for filing additional claims for rental and medical. No mention was ever made of a time limit for the repair.
When my car was ready, I immediately returned the rental. My insurance company paid for the first 30 days and I was told I would have to file with the other insurance company to be reimbursed for the additional days. The total owed to me was $718.
I contacted the other company and was told the repair should have taken 21 days (I'm assuming 21 business days) and that is what they reimbursed my insurance company.
I was not notified of this time limit (nor could I have made the parts appear or even driven the damaged car out of the repair shop). My insurance company was not notified of a time limit - nor was the repair place.
After my claim was denied, I emailed the opposing insurance company and was told I could send supporting information proving why it took longer than the 21 days. The auto repair place sent documentation for damages they didn't find until they took the car for a test drive. Yesterday there was a check in my for $246 -and with this the other insurance company feels the issue is settled.
I have not cashed the check. I feel I should be reimbursed for the entire rental cost as I was not at fault and no notification was given to anyone for a time limit for the repair.
If you do the math, the auto shop got the go-ahead to do the repairs from that same insurance company on 11/2. Twenty business days later is Dec. 3 - which is 37 days after the accident.
What is my best approach for getting reimbursed for the full amount?
Advice appreciated.
PS The rental car was comparable to my car but $9 dollars a day over my policy limit so I am on the hook for $9 x 30 plus $39 x 7 plus tax. The other insurance company isn't disputing the daily amount but rather the "additonal" 16 days of rental.
ANSWER: Hi Heidi,
You should get from the repair shop any statement that shows that there were parts on back order. This will further help your case. Then send a certified letter/ return receiprt requested(not email). In your leter state that you are demading payment of $xxx.xx . If payment in full is not reeived within 10 days I will have no choice bey to file suit against your insured.
Along with the letter, send them back their check with the word VOID written across it. Then if you do nt get paid, file suit against the at-fault driver in small claims court. You wil then bring in to court all of your paid bills, the statement from the repair shop and present your case. What ever the judge grants you, the insurance company will then have to pay.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: Thank you for your quick response (and apologies for my delayed one).
Just to be clear, the other party is probably unaware this is going on as I was only in contact with their insurance company. I would prefer to prevail upon the insurance company to pay rather than expend the time, effort, agitation, etc of going to small claims.
I am wondering if there is any obligation, at the time they (the insurance co. of the party at fault) authorized the repair, to alert the repair shop or the injured party of a time limit for the repairs.
1) If so, would it make sense to return the voided check with a request for documentation that they did so.
2) Would it make sense to ask them to actually show which days they were counting as 21 days for repair. As I said, there were weekends and a holiday in the 37 days that it took to make the repairs.
Thanks again for your help.
AnswerHi Heidi,
The law only requires that you be paid for "reasonable" rental during repairs. This leaves the door open to interpretation as to what is reasonable. It is up to you and te repair shop to show that the time it took to repair the car was reasonable. That is why I suggested you get a statement from the shop showing the timeline of ordering parts and being told that parts were on back order and when they actually came in, etc. It is up to you and the shop to prove how many days were "Required" to complete the repair. If the shop is can not or is not willing to help you with this, perhaps you should ask them to pay the difference.
There is no easy answer. To collect money you must be able and willing to prove your case and pursue it in court if necessary.
The statement of going to court is to show that you are serious. But if you do have to file suit it would be against the at-fault driver. After all they are the one who owes you the money since they are the one who damaged your car. Perhaps you could copy the at-fault driver so they know what is going on. They may tell the insurance company to just pay you.
I hope this helps
Richard Hixenbaugh
