QuestionQUESTION: Hi There,
I was involved in a minor property damage car accident in April 08. After all necessary investigation, my insurance company determined that the other driver was 100% at fault. However, the other insurance company determined that I was 60% at fault. I sent the other insurance company the pictures taken at the accident scene but they told me that I was 60% at fault, which I strongly disagree. Out of $1200 total property damage quote, my insurance company sent me a payment of $700, excluding my deductible of $500 in April. Today, they sent me a second check for $200 (40% of the $500 deductible), after their subrogation process.
My questions are as follows:
1) Why did they send me only $200 since they determined the other driver to be at fault 100%? What are my options for recovering the $300 difference from the other insurance company?
2) On my California driving record, will this accident be listed? If yes, will I be 60% at fault? or 0% at fault?
3) Will my future insurance premium go up even though my insurance company determined me to be 0% at fault? This is my first car accident for 10 years.
Thank you very much for your help and you have a great day.
ANSWER: Hi David,
As I understand your question, your insurance company initially determined the other party to be 100% at fault and the other party determined you to be 60% at fault.
After these decisions were made, either more information became available or the two companies went to binding arbitration for a decision (which is most likely).
Arbitration decided that you were 25% at fault and the other party 75% at fault. That's why you have received a total of $900 (75%) of your $1,200 damage.
Since California recognizes the Pure Comparative Fault rule, which allows a damaged party to recover even if it is 99% at fault, although the recovery is reduced by the damaged party's degree of fault, this means that your insurance company has paid the adverse company 25% of the damage to the other car.
Since $300 of the damage done to your car is considered your fault, it your company paid $450 or more toward the repairs of the other car, this will be considered a chargeable accident over ($750) damage against you and will cause your rates to increase.
Since the inception of proposition 103 in 1989, your driving record is one of the major keys in establishing your rate and all the factors used in California to establish rates are controlled by proposition 103. A chargeable accident Of $750 or more is stipulated as being a rating factor.
Your driving record with DMV will simply show that on April 08, 2008 that you were involved in an automobile accident. It will not state whether or not you were at fault nor the amount of damages.
Your insurance company must report to a central agency exactly how many dollars of this accident was considered your fault. This information is available to any other insurance company with a few computer keystrokes.
It appears that your insurance company did everything possible to have you determined as being 0% at fault, but failed.
The case is now closed and nothing more can be done.
Only your own personal agent can give you an estimate of how this will affect your rate.
I hope that you have found this information to be of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
---------- FOLLOW-UP ----------
QUESTION: Thank you for prompt response, first of all. After talking with the other insurance company today, I was told that they sent a payment of $490 (40 percent of total damage of $1,225) to my insurance company and there was no biding arbitration yet. My insurance company just sent me $200 of the $490 and closed the case. Can I ask my insurance company to go through arbitration? I do not quite understand why they closed the case without seeking arbitration. If I do not agree with the other insurance' liability determination, is there any legal action that I personally take?
Thank you again for your info and have a great day!
AnswerHi David,
This new information changes almost everything that I have said so far about your claim.
It appears that when the adverse company made a 60/40 offer, your company simply accepted it and have now returned 40% of your deductible to you.
Under the legal wording of the insurance policy, it gives the company power to settle any claim in the way they see best fit, although this is the first time that I have seen a situation where the company didn't at least discuss the issue with you.
You will also have your rate increased for a chargeable accident since your insurance paid over $750.
You can certainly talk with your company to learn why they reached this decision, but the case is now closed, releases have been signed and the claim can never be opened again.
I hope this is helpful.
Bennie
