I Need Help with an Auto Accident

[Frank Stastny]

A week ago last Friday a girl backed into the left rear of my pickup in a parking lot. I had just pulled in and was about to get out when I felt the jolt of her hitting me.

The girl has her learners permit. She had an adult friend in the van with her. The van belongs to the adult, a grown woman. She said for me not to call the cops, that her insurance company would take care of it. I called them anyway. The officer came and filled out a report and the owner of the van as well as the girl driving both told him it was the girl's fault. The woman has Allstate.

I waited until Tuesday and called Allstate. They said she had not reported the claim. The person who I talked to took down all the information and said Allstate would have someone contact me but would not do anything until they talked to their policy holder.

I called Allstate again last Friday and the woman still hadn't reported the accident. I told them I had the police report and faxed it to them. They said they still won't do anything until they call their policy holder. Apparently she is not taking their calls.

I'm starting to lose my sense of humor. I got an estimate of a little over $1,600. My insurance company, State Farm, will cover it but I will have to pay the $250 deductible.

I know if I call Allstate and "raise hell" it probably won't do any good except to make me feel better. I intended on calling them again today but got busy.

I am going to call again tomorrow but I thought that I would try to get some information here before calling.

Do I just eat the $250 and have State Farm take care of it, take her to small claims court (do I take the woman who owns the van, the girl driving or both), keep calling Allstate or call my buddy Guido?

Thanks I really appreciate your help.

 

[xrac]

A week ago last Friday a girl backed into the left rear of my pickup in a parking lot. I had just pulled in and was about to get out when I felt the jolt of her hitting me.

The girl has her learners permit. She had an adult friend in the van with her. The van belongs to the adult, a grown woman. She said for me not to call the cops, that her insurance company would take care of it. I called them anyway. The officer came and filled out a report and the owner of the van as well as the girl driving both told him it was the girl's fault. The woman has Allstate.

I waited until Tuesday and called Allstate. They said she had not reported the claim. The person who I talked to took down all the information and said Allstate would have someone contact me but would not do anything until they talked to their policy holder.

I called Allstate again last Friday and the woman still hadn't reported the accident. I told them I had the police report and faxed it to them. They said they still won't do anything until they call their policy holder. Apparently she is not taking their calls.

I'm starting to lose my sense of humor. I got an estimate of a little over $1,600. My insurance company, State Farm, will cover it but I will have to pay the $250 deductible.

I know if I call Allstate and "raise hell" it probably won't do any good except to make me feel better. I intended on calling them again today but got busy.

I am going to call again tomorrow but I thought that I would try to get some information here before calling.

Do I just eat the $250 and have State Farm take care of it, take her to small claims court (do I take the woman who owns the van, the girl driving or both), keep calling Allstate or call my buddy Guido?

Thanks I really appreciate your help.

Frank,

My understanding (not as a P&C guy but from experience) is that if the other company won't do something they are suppose to do that you can have your company do the repair and pay the deductible. Your company SF will then go after Allstate to collect their lose and will recover the lose including your deductible. This is called subrogation:

Subrogation refers to an insurance company seeking reimbursement from the person or entity legally responsible for an accident after the insurer has paid out money on behalf of its insured. The general rule is that, after paying your claim, your insurer is “subrogated” to the rights of your policy and can “step into your shoes” to go after or sue the negligent party on your behalf. Not all insurers subrogate for medical bills. If they do, it could be against the other driver’s insurance, but it could also be against your own separate health insurance policy or any other medical insurance that would cover your treatment.

I had a similar situation with a kid who tried to pull a hit in run and then he didn't tell his insurance. It took about three calls to the insurance company and they finally contacted him. I would talk to my SF agent if you haven't.

 

[patch36]

xrac is exactly correct. Your company will go after her company. Talk to your SF agent.

 

[warnerins]

Frank,

Your genius was in filing that police report. Always, always, always get that report. Otherwise, it is your word against theirs and it is amazing how their recollection of the events change a day or two later.

Last, remember that this subrogation can include a rental vehicle to get you on your way while your vehicle is being repaired.


Final - Last, can you imagine what this young lady did to her insurance rates (3 to 5 years) with an at-fault accident on her record, pre-license

 

[GreenSky]

Frank, pay the $250 deductible. You'll get it back after subrogation.

I'm surprised the cops wrote a report for something that happened on private property. Glad they did.

Just goes to show that unless a female driver is getting beer for her man, food shopping, or going to or from work, they have no business behind the wheel.

Rick

 

[Frank Stastny]

Frank, pay the $250 deductible. You'll get it back after subrogation.

Thanks all, I do know that.

My concern in doing that is that in the last four years I have hit two deer that jumped in front of me. I turned both in to State Farm. After the second one I received a letter from them telling me that I have exceeded what they consider normal or a reasonable number of claims in that time period.

The letter didn't specifically state it but it sounded like any more accidents in the near future could be cause for them to cancel my policy or dramatically increase my rates even though they were not my fault. That's why I am [FONT=&quot]reluctant[/FONT] to have them do that.

Can and will they most likely do that?

I have had my all of my P&C insurance with the same agency since 1974. If they give me any crap over this I will probably cancel all my coverage with them. The $250 is not my major concern.

 

[djs]

A subrogated claim is no big deal to an insurance company. They won't non-renew you for this (or at least shouldn't).

Allstate does not need to talk to the policy holder, though this is usual procedure. This is a step to help prevent people from filing false claims. As long as you have been talking to Allstate claims (not the agent), they have also sent a letter to the policy holder asking for a response. If no response, they will take care of it.

Usually, once you call the other persons insurance company, accident liability should be resolved within a week. I've seen it drag out, but only when it isn't pretty clear cut.

Behind the scenes: What is happening here (I'm guessing) is the learner permit person was never added to the policy. Back in the 30 day permit times, this wasn't much of an issue, now, with most states having 6 month permits, it's become a major one. Drivers that live in the household and not listed on the policy usually are stated not to be covered. In these cases, they usually cover it anyway, but not willingly. This could affect your subrogation claim as well, if Allstate is a stickler and does not extend coverage to the driver. Only the agent knows for sure.....

For those not familiar with the nuances of P&C coverage, a driver that doesn't live in the home is almost always covered. There is a strange rule that is basically to prevent not listing a high risk driver but yet having coverage extended to them. (this is very generic, but it conveys the point).

Of course, I'm guessing on this..... Been there, have the T-Shirt for this.

Dan

 

[Frank Stastny]

A subrogated claim is no big deal to an insurance company. They won't non-renew you for this (or at least shouldn't).

Allstate does not need to talk to the policy holder, though this is usual procedure. This is a step to help prevent people from filing false claims. As long as you have been talking to Allstate claims (not the agent), they have also sent a letter to the policy holder asking for a response. If no response, they will take care of it.

Usually, once you call the other persons insurance company, accident liability should be resolved within a week. I've seen it drag out, but only when it isn't pretty clear cut.

Behind the scenes: What is happening here (I'm guessing) is the learner permit person was never added to the policy. Back in the 30 day permit times, this wasn't much of an issue, now, with most states having 6 month permits, it's become a major one. Drivers that live in the household and not listed on the policy usually are stated not to be covered. In these cases, they usually cover it anyway, but not willingly. This could affect your subrogation claim as well, if Allstate is a stickler and does not extend coverage to the driver. Only the agent knows for sure.....

For those not familiar with the nuances of P&C coverage, a driver that doesn't live in the home is almost always covered. There is a strange rule that is basically to prevent not listing a high risk driver but yet having coverage extended to them. (this is very generic, but it conveys the point).

Of course, I'm guessing on this..... Been there, have the T-Shirt for this.

Dan

Thanks Dan,

The one thing I didn't ask is if the girl lived with the owner or is related. The last names are different and she has a different phone number although it could just be her cell phone. She did ask the owner while we were talking if it would affect her rates and the owner said not to worry about it.

It should be "cut and dry", I sent a copy of the police report stating they both agree that it was the girl's fault.

I'm going to try Allstate one more time and then turn it over to either State Farm or Guido.

 

[bobson]

None of the companies we work with in my state require a person with a 'learner's permit' to be listed on a policy. They aren't yet official drivers. Once they get the license then we need to add them, surprising that is different in other places. In fact we've went so far as to add a driver with learner's permit on a policy because the named insured said the kid had his license. When we discovered it was just a learner's permit the insurance company removed the kid back to the date he was added and refunded the premium.

Comp claims (deer run-ins) in my state can't be used to alter your policy at all. They can raise your comp deductible but they can't charge you higher rates nor can they alter or cancel coverage.

I think the big question here is why are you wasting your money on State Farm Insurance? You need to find a good Independent Agent that can find you great coverage (which State Farm does provide) at a great price.

Nothing quite like State Farm and Allstate loyalty though. We write with Allstate and I showed a guy a quote for his car insurance saving him about $600 on a $1500 policy with another company, he chose to stay with Allstate.

 

[moonlightandmargaritas]

I think the big question here is why are you wasting your money on State Farm Insurance?

Here's why one might "waste their money" with companies like State Farm...

On Friday, August 13, 2004, Hurricane Charley blew about a third of my roof off. State Farm had an adjuster there the next day, and I had a check for $27,000+ to replace my roof three days later - including mail time.

Many friends and neighbors with the independent-type companies with the "great price" were waiting for adjusters three months later...