Auto Insurance Claims: Car accident scam??, texas plates, security tape

Question
I was exiting a gas station, driving a 10-year old Camry, and a truck pulled out in front of me. As we were waiting to pull out on the street, he put his truck in reverse and hit me hard. He immediately got out, said that it was totally his fault, (very apologetic)and gave me his insurance info. When attempting to share my insurance information, he said, no - it was OK - he'd inform his insurance company when he got home to Texas that he had hit me. (This happened in Aurora, CO) He had Texas plates.  I called the police to have them come out and file a report - but they said they would not come out since it happened on private property. There were no witnesses.  When I tried to call his insurance agency that evening - they said they had no one by that name or address with their company. I called my insurance company (USAA) and they said that they could not help and would total the car (with our $1000 deductible) since the car is 10 years old. The car is not drivable - the hood is damaged, with structural damage to the bar in front of the radiator.  His bumper did not appear damaged in the least.  Now we get a letter from our insurance company (5 days later)informing us of the claim AGAINST us - his company went to ours saying I rear-ended him - big damages to his truck. My husband went to the gas station to see if they had it on their security tape - but they have no video outside, only inside. I feel this is a huge scam!  Is there anything else that we can do? We have not had an accident on our policy for over 15 years - and then it was tiny one.  And how did this guy get our insurance information when he refused to take it from me?  Is this a common scam?  Please warn others!

Answer
Hi Erin,

There are three things to do, and you need to do them in writing.  What is at stake here is not just your deductible, but unless you are firm in your response, there is a risk that your insurer will be able to call this an "at-fault" accident and they will be able to raise your rates.  Here are your tasks.

First, make a history, including all that was said AND the fact that you called the police and that you initially called HIS insurance.  Those actions show that you were the victim. Discuss going to see about the video, etc.  

Second, write a letter stating that you WILL NOT agree to ANY liability and that if the tortfeasor does not admit liability you will forthwith sue him.  Send that letter via certified mail to BOTH your insurance and his insurance.

Third, figure out the easiest way to file a lawsuit that will have jurisdiction of someone out of state, and get a copy of their form and prepare it.  If things do not work out with the tortfeasor's insurance paying your FULL deductible, then send BOTH him and his insurer an "advance" (i.e. for info only—to stimulate some action toward settlement).  

You may not choose to actually file and proceed with the lawsuit, but Dr. Settlement knows insurance claim negotiations and I have often used an "advance" copies of lawsuits to shake loose a lot of cash in big insurance settlements.  It works to let them know that you are serious.

In truth, you COULD sue for your deductible if you wanted to.  And don't forget that the increase in your rates is also at stake here.  So, if you cannot reach agreement, then try to file in small claims court and make him defend.  BUT the challenge with that is such courts are often limited in their jurisdiction, which means that the court may not be able to cast its net of jurisdiction to bring in a person who lives out of state.  

But the clerk of the court can help you with this.  Call and find out the easiest way to sue and the clerk will guide you to the proper court.  I would start with small claims court in the county in which the accident occurred.  They may send you to the next higher court, which is called a court of record.  But try to keep it at the lowest level possible since they will have a form for you to start the lawsuit.

Is this a scam?  No.  People frequently change their minds once they get away from the scene of the accident.  It won’t help now, but in the future, keep paper and pen in the car for the tortfeasor to sign an admission of fault.  

I trust that my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com