by Guest » Wed Oct 08, 2008 07:36 pm
Hello, I rear ended another vehicle and did considerable damage to it. It was completely my fault. My insurance had expired two weeks before the accident. There are reasons for this but that is not here nor there.
After the accident I recieved a phone call from the person I had the accident with and they were requesting money. I ended up paying them $2000. I have proof of tgis, too. However, the insurance came after me with a bill around $3000. Now, I don't know how the law of subrogation really works, but I did read that if you reach a deal with the individual person involved in the accident that the insurance company cannot come after you for that money. That because a deal was made with the person of the actual accident, that they have given up their rights and the insurance company rights to collect this money.
Am I completely wrong? And what are my options in this case?
Thank you.
After the accident I recieved a phone call from the person I had the accident with and they were requesting money. I ended up paying them $2000. I have proof of tgis, too. However, the insurance came after me with a bill around $3000. Now, I don't know how the law of subrogation really works, but I did read that if you reach a deal with the individual person involved in the accident that the insurance company cannot come after you for that money. That because a deal was made with the person of the actual accident, that they have given up their rights and the insurance company rights to collect this money.
Am I completely wrong? And what are my options in this case?
Thank you.
Posted: Wed Oct 08, 2008 08:17 pm Post Subject:
That because a deal was made with the person of the actual accident, that they have given up their rights and the insurance company rights to collect this money.
The cannot give up their insurance company's right to recovery..however I would talk with their companys subrogation dept and prove to them I paid this jerk....and minimally you should get the amount due to the company reduced by the amount that you paid this guy...were both amounts of money for the repair to the vehicle?Am I completely wrong? And what are my options in this case?
Kind of in that they cannot give up their ins company's rights but this might be an issue between them and their carrier...unless you have a release from them...also this 2k you paid couldn't be the amount of their deductible could it? if so then if the 3k they are asking for is AFTER his deductible the amount due would be correct...contact the subro unit tell them what you've paid and that you can prove this and see what they say....let us know as well, and if we can assist an any other way...if this guy is attempting to colllect from you and his carrier for the same damages not only is he a jerk but should be in some trouble over this and you in no way should 'pay the bill' if you dont' get anywhere with the carrier, (but I bet you will) then contact your states dept of ins.Posted: Wed Oct 08, 2008 08:21 pm Post Subject:
Your 1/2 right and 1/2 wrong. The insurance company assumes their insureds right of recovery and no more. So if you _settled_ the claim with their insured, then the insurance company cannot pursue a claim. But I'm guessing that you did not secure a release from this other person and only made a payment to them. If this is correct, then the other person (the insurance company) still has a right to collect up to their loss. If their loss is $3000 and you already paid $2000, then they can only collect the additional $1000.
If you had obtained a release for that $2000 then no one could come after you. There may be other ways to obtain this "release". I'm no lawyer but I think some state courts will allow a person to write something such as "Full and Final Payment" in the memo line of a payment and this could be considered a release. Basically, you need to be able to show that the person accepting the payment understood that the payment was payment in full and was to settle the loss. Not something like a partial payment.
Posted: Wed Oct 08, 2008 08:55 pm Post Subject:
Well, the person said it was because they had to pay the deductible and that the amount they were going to be given was not going to be enough fro their vehicle. So, because I was in fear of being sued, I paid them the $2000. They then said that I would be relieved of any further charges in the future, by them, or by their insurance company.
I e-mailed them this information yesterday, and I got a response back from their insurance company, and they said they spoke to their insured, and convinced them to pay back a $1000. But they said that I still owe them another $1000.
Their client tried to get more money from me, and they even said that a $1000 of this money was going to be used for a deductible. But the insurance company included the deductible in their initial $3000 bill. So, I am not sure if the person who was involved in the accident really had to pay this $1000 deductible, and did so, or if this insurance company was trying to get another $1000. Because, their insurance said they concinced their client to pay them back a $1000. Who knows if that is true.
Posted: Wed Oct 08, 2008 10:20 pm Post Subject:
I guess most of this will depend if you got the release form but anything you ever do like this should always be put into writing so that you are protected.
Posted: Wed Oct 08, 2008 10:42 pm Post Subject:
if that guy didn't work it out with his insurance company they would've continued to move on the subrogation
now did you get any formal documentation? because otherwise you'd have no proof and the insurance comapny could subrogate for the full amount
Basically what your going to want to do is make sure that his insurance company knows that you payed him and then you need to come up with an agreement on how much you have left to pay or if what you've payed already is sufficient
At this point it's all up to the insurance company because they know how much they've payed for and they are going to do whatever it takes to get that same dollar amount back
Posted: Wed Oct 08, 2008 11:23 pm Post Subject:
So, I am not sure if the person who was involved in the accident really had to pay this $1000 deductible, and did so
He would've been charges his deductible, whether he paid it or not is really inmaterial you owe for the complete cost of repair...or if this insurance company was trying to get another $1000.
I can gaurantee that isn't the case...Because, their insurance said they concinced their client to pay them back a $1000. Who knows if that is true.
Of course it's the truth why else would they reduce the amount you owe...ok here's the deal lets say his cost of repair is 3k, the ins company issues a draft to him and the shop for 2k (1k deductible is well deducted)...they send you a bill for the entire amount because that is what you owe....however jerk is only due reimbursment of his ded (1k) but he has 2k (from you)...so he has to pay 1k back to his carrier, you've already paid his ded and 1k of the damage so now you only owe 1k...and yes, you do owe it...Posted: Thu Oct 09, 2008 11:13 am Post Subject:
That spells it out pretty well. What would happen if someone hit you and didn't offer to pay as this person did? Would you still have to pay your deductible? I am thinking you would but how would you go about getting reimbursed for it since it wasn't your fault?
Ralph. you seem like an honest person trying to make right. I really hope you get this worked out.
Posted: Thu Oct 09, 2008 11:32 am Post Subject:
Any time you use your collision or comp coverage a deductible is charged period....doesn't matter whos fault it is .... it not your fault your carrier will subro the at fault party and all that I'm aware of will include the insured deductible in the subro demand
Posted: Thu Oct 09, 2008 11:35 am Post Subject:
So they at least stand behind you. thats good to know.
Posted: Thu Oct 09, 2008 12:04 pm Post Subject:
heck yeah, they want THEIR money back too :wink:
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