Do I keep the money?

[John Lucas]

So I was rear ended and I filed a claim with my insurance, they did an estimate for damages and digitally sent the money to my account. But now the other drivers insurance company (at fault) is going to cover the repairs and rental. So what do I do with the money my insurance already deposited into my account?

 

[Janet Fowler]

Send it back to your insurance company !

 

[adjusterjack]

Right. Your insurance company has a right of subrogation against the at-fault driver and your policy (contract) obligates you to cooperate with the subrogation.

You might not have to return the money to your company but you do have to notify the claim rep of the offer from the other company so that your claim rep can initiate subrogation and be reimbursed. The subrogation includes getting your deductible back.

If you don't comply with the subrogation provision, you are in breach of contract and risk losing your insurance and paying a lot more to replace it. And possibly get sued for the money.

Every auto policy contains the following provision, or words to that effect.

OUR RIGHT TO RECOVER PAYMENT
A. If we make a payment under this policy and the person to or for whom payment was made has a right to recover damages from another, we shall be subrogated to that right. That person shall do:
1. Whatever is necessary to enable us to exercise our rights; and
2. Nothing after loss to prejudice them.
B. If we make a payment under this policy and the person to or for whom payment is made recovers damages from another, that person shall:
1. Hold in trust for us the proceeds of the recovery; and
2. Reimburse us to the extent of our payment.

Call your claims adjuster first thing in the morning.