by sophisticadedesigns » Sat Jan 21, 2012 12:49 pm
If you don't agree to a settlement can a insurance company just send you a check and close the claim? Our company is trying to do that if we don't respond in 10 days.
Posted: Sat Jan 21, 2012 09:19 pm Post Subject:
Yes.... especially if they are your insurance company. They are required to send you the undisputed amount as everyone agrees at least that amount is owed. Accepting it does not mean you agree that your claim is done. You can also feel free not to cash the check or return it.
Closing a claim does not mean it cannot be reopened. Many states require the insurance company to update the insured every 30 days on the status of a claim. I've had many claims where the insured simply won't discuss settlement. I don't feel like sending out a letter every 30 days for years because this person does not want to talk about it. So I mail the undisputed amount and close the claim. Now I don't need to sent out those letters and possibly be held responsible for Bad Faith. If something more comes in, I still need to address it.
Posted: Mon Jan 23, 2012 09:08 am Post Subject:
tcope is absolutely correct. Insurance companies are under a requirement of law to resolve a claim quickly once liability has been determined. CA law, for example, generally requires that a claim be paid within 40 days of such a determination.
My wife recently had a minor incident that caused some damage to her vehicle -- a semi-truck tire disintegrated in front of her and was thrown into her bumper. I filed the claim on line with our insurance company, two days later the adjuster was at her place of employment to inspect the vehicle, and two days later a check for the initial estimate (less our $500 deductible) was in our mailbox.
The actual repair cost exceeded the estimate and payment by a few hundred dollars because the rocker panel could not be buffed out and had to be replaced and paints. The insurance company had a check for the balance due to their DRP facility before the vehicle was ready to be picked up.
No questions asked, and no hassles. The way it usually goes for the vast majority of claims.
Posted: Thu Jan 26, 2012 01:18 pm Post Subject: Refusal to discuss
So, if an insurance company decides my car is "going to be totaled" and I don't want it to be. Can't I just close the claim? Withdraw the claim? I don't care to deal with them any longer. I know I can repair my car for way less than their supposed estimate and it drives real well. I'm not willing to accept a check nor will i ever send title so what would their next step be?
Posted: Thu Jan 26, 2012 10:23 pm Post Subject:
Can't I just close the claim? Withdraw the claim? I don't care to deal with them any longer.
No. But you can agree to purchase the vehicle from them for the salvage value (deducting that amount from their claim value) and use the balance of the claim money toward the repairs on your vehicle. You will have to reregister the vehicle with a "salvage" title.
Posted: Fri Jan 27, 2012 12:40 am Post Subject:
No. But you can agree to purchase the vehicle from them for the salvage value (deducting that amount from their claim value) and use the balance of the claim money toward the repairs on your vehicle. You will have to reregister the vehicle with a "salvage" title
.Some state such as Missouri and Oklahoma, do not require turning in an old title for a prior salvage title if you retain the vehicle and it is over 7 years old. If there is a leinholder on the title, you may have to convince them to allow you to retain it. Or you could agree to pay off the lein holder and do whatever you want with the vehicle.
Strike one
Depending in which state you reside, the insurer may be burdened with a statutory obligation to report the vehicle as a total loss if they have inspected it regardless of whether they paid anything on the claim. (meaning the law requires it)
Strike two
The information that the vehicle may have been reported as a total loss will most likely be entered into a national data base in which companies like carfax and autocheck buy that information, and consumers and dealers rely on the reports to determine the viabilityof any future purchases or trade-ins.
Strike three
If the accident was your fault and the insurer bases the premium on your driving history whether a claim is paid or not, you may pay premium increase.
You could consider the following........
Take the money, retain the vehicle (if you desire) and if the insurer doesn't try to gouge you on the salvage value, then fix it for the amount you wish to spend and use the leftover to pay any additional premium increase that you may incur.
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