Auto Insurance Claims: Demanding Return of Insurance Settlement, owners insurance company, legal recourse

Question
QUESTION: I was involved in an accident.  I called the car's owners insurance company and honestly represented the events leading up the accident.  I was behind the other vehicle, and in the process of avoiding the policy holders vehicle, who had just rear ended another vehicle, I collided with the curb, sustaining minor damage.

Based on this, the other guys insurance company agreed to assess damages to my vehicle.

Assessment was completed by the Insurance company at their facility, and they immediately issued me a check for damages to my vehicle.

I deposited the check that day.

After deposting the check, I receive a call from a different adjuster at the same insurance company.  I tell him the same accurate story, however this time he indicates that he believes his policy holder is not liable.  They now demand return of the settlement.

I have no intention of doing so.  I believe that the terms of the settlement were accepted by both parties, and they have no right to demand repayment.

What legal recourse do they have?  The settlement is for less than $1000.

ANSWER: Hi Wellington,

If you had explained this story to me as an adjuster, I would have denied your claim. The reason for the damage to your car is that you were following too close which resulted in you not being able to safely stop your vehicle when you saw what was happening in front of you. Therefore your actions are the cause of the damage to your vehicle.

That having been said, your position should be that you explained the facts of this accident accurately and honestly and that their representitive (who you presumed to be well trained and experienced) made a decision to accept liability on behalf of their insured. That representitive then assessed the damage to your car and made you an offer to pay for the damage which you accepted. Their representitive then issued you a check in settlement of the claim which you accepted and cashed.

I'm not an attorney, but I do not think they would win even if they sue you. They will try to intimidate you and may even threaten to sue you. Your position may be that if they want the money back they should take it out of the paycheck of their employee who issued you the check.  (you may want to consult an attorney if you actually get sued)

I hope this helps
Richard Hixenbaugh  

---------- FOLLOW-UP ----------

QUESTION: Mr. Hixenbaugh,

That is what I thought might be the case.  I do think it's strange that somehow you are expected to stop at highway speeds when the guy in front of you crashes and stops instantly - even an F-1 car would not have the stopping power. However that is another topic.

I think this will be difficult to be ruled "overpayment" or "undue enrichment" because I accurately represented my situation. Furthermore it would be difficult to argue additional discovery since I gave the same statement twice, plus the statements from other witnesses, drivers.

Also if possible could you please remove my name from the entry?

Thank you very much for you time!

Answer
Hi Wellington,

You are correct. All things point to an error on their part. The only question would be if a judge would consider it undue enrichment. Of course the insurance company would argue for that.

As for your name, I do not have any control over that. The experts do not have the ability to alter the ionformation you entered.

I hope this helps
Richard Hixenbaugh