Submitted by Impossible-Cry-495 t3_127nvcx in personalfinance
I got rear ended, other driver admitted fault.
Their insurance company is offering to pay for my $500 deductible upfront, and a rental as long as I go through my insurance for repairs.
I've been in this situation before, but I usually go through my insurance first.
They’re trying to get you to settle with their client for $500 and waive further claims to his policy. The aim of this is to attempt to limit their liability to $500.
That was my guess as well. That there would be a release from liability attached to this but does not sound very ethical.
Nothing about insurance is ethical
They charge exorbitant premiums then do everything to avoid paying claims
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I would disagree. Consumer-Facing insurance like Personal Auto and Homeowners is very regulated on how much they can charge and what is covered.
Are there regulations against insurance companies encouraging OP to commit insurance fraud? Seems like there oughtta be.
They’re not encouraging OP to commit insurance fraud. They’re encouraging OP to break their own contractual relationship with their insurance company, but that isn’t fraud.
What do you mean “by encouraging them to break their contractual relationship with their insurance company?” The presumed at-fault party’s insurance company is encouraging OP to utilize that contractual relationship with OP’s insurer…..albeit as a way for at-fault insurer to gain some advantage themselves and save money or hassle.
Well, your contractual relationship with your insurance company says that as part of your contract with them you agree not to accept settlements on their behalf. They’re encouraging OP to essentially take $500 so they don’t have to pay their deductible, and then go to their insurance filing a claim with the caveat of “I have already accepted a settlement regarding this matter and as such you cannot pursue the opposing party’s insurer for compensation”
And so your insurer will then cover your damages per your collision policy, but then they’re going to go ahead and raise your premiums (or just drop you).
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You should explain that to OP's insurance company. I'm sure they'll be very receptive to that argument.
I know exactly what they’ll do if OP takes this offer. They will cover OP’s damages per their collision policy, and promptly tell OP that they will need to find a new insurer, because they will no longer do business with OP.
On further thought I am betting that they have looked at the damage and estimated that it’s more than their client’s policy limits, or they decided to drop them as a client previously but this happened before that became effective.
I think this would mean that you basically accept responsibility on the claim on your insurance. Which means your rates will go up, it would not be worth it. Don't do it.
Your rates go up is the best case. More likely you’re dropped as a client.
Is that even legal?
It’s not illegal. They have no contractual relationship with you, they have a contractual relationship with their client. Their interest is in paying as little as you will accept to absolve their client of further liability. Their client has damaged your property; if there was no such thing as insurance, you would be filing a lawsuit against the person who damaged your property, seeking a judgement against them. When their insurance offers you a payment, they’re offering to settle your claim of damages against their client; you’re agreeing not to seek further damages.
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>Go through your insurance, pay your deductible, and your insurance company subrogates the other party's insurance.
In some cases your company may even waive the deductible pending the investigation and subrogation process. Mine did after I was rear-ended; presumably it's so unlikely to have been my fault that it's not worth charging then refunding the few hundred dollars every time.
Usually in those cases, the other insurance company already admits fault quickly without any substantial investigation, which allows your insurer to waive deductible. If you are hit from behind, and there are no serious injuries, it's pretty common for insurance companies to come to an understanding about fault in <24 h.
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> I've never heard of an insurance company offering to pay your deductible and rental but not pay for the repairs. They are ultimately liable for the repairs.
Sounds like that's why they're offering.
It's cheaper for them to pay a $500 deductible and allow OP's insurance to cover the balance, than to pay for the repairs minus the deductible.
It sure does sound like the other driver's insurance company is encouraging OP to commit insurance fraud.
It's weird too because I have trouble imagining the insurance company is happy footing a repair bill (minus deductible) when the other company should be paying?
Like when OP goes to their insurance and says "hey bud my car needs repaired" aren't they gonna ask how it happened? And then contact the other insurance?
Hell I would worry about the insurance company denying to cover anything and saying policy was somehow violated by making an agreement that might save the other insurance company from paying damage they should
Are they even allowed to be taking to them? They are known to be represented by a lawyer paid for by their insurance company. Isn't this ex parte communication?
The at fault driver’s insurance is the one that should be footing the bill. This is a quick attempt to shirk their responsibility and screw you in the process. Stop all communication with the other drivers insurance and contact your insurance rep about what has transpired.
Former insurance adjuster here. Your insurance company will take care of you much better than the other guy's insurance company. Your insurance will just subrogate the bills from the other insurance company. You might have to pay your deductible first, but your insurance will get it back from the other insurance. We were trained to prioritize our own customers regardless of fault and to not care as much for the "other insured" (or people our customers hit or hit our customers).
This. Report the accident to your insurance company and tell them what the at-fault insurance company is trying to do.
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Hell no that isn’t normal. They are trying to have you pay your insurance deductible and have your insurance pay for the repairs, which in turn would make your rate go up.
Your insurance likely wouldn’t even pay it out if they knew there was another person (with insurance) at fault.
The at fault driver’s insurance is who has to foot the bill, you don’t even owe a deductible.
OP should forward this offer to their own insurance company.
This. I would love to see their response.
OP’s insurance being required to pay for the damage if prompted to by OP is tied to whether OP has collision coverage on the policy and not tied to whether other driver was at fault. They would pay it minus deductible and likely subrogate and try and get deductible back to OP.
They have the option to use their own insurance to speed it up, then they (op insurance) just have to hope the at fault insurance doesn’t try to say it wasn’t their fault, which definitely happens. Your word vs theirs bs they try to pull all the time.
>The at fault driver’s insurance is who has to foot the bill, you don’t even owe a deductible.
fwiw, depending on timing and stuff, if you go through your insurance you might pay your deductible and later be reimbursed for it. that happened to me once.
Collision coverage is available regardless of who's at fault. The insurance carrier will subrogate and try to recover, including the deductible. Deductible is due regardless of who's at fault too.
>Collision coverage is available regardless of who's at fault
Yes, assuming OP carries that coverage.
>Deductible is due regardless of who's at fault too.
Only if OP uses their own policy to cover the repairs. There's no deductible if you use the at-fault party's policy.
I do have collision, yes.
Op wouldn't have a deductible to pay if they didn't have collusion coverage
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Haha no your insurance won’t pay this, but if you have comprehensive insurance they hopefully will go and get the money that you are owed from the other driver’s insurance
Hell NO! something's fishy.. call your insurance and go through the proper channel.. I had a friend who was duped in a similar way and then sued by the offender ( within 1 year ) !!!
Also ensure that you have a police report .
Police reports mean absolutely nothing when it comes to the insurer.
Agree. But they are super useful if the other party reports a hit and run.
If it's on a public roadway, a police report is usually a legal requirement - but it's not going to help with the insurance side. On private property, like a parking lot, cops won't do a report at all 99% of the time because they have no jurisdiction.
It won't always help with insurance, but it can. I was once hit by a driver who admitted to me and the responding officer that it was her fault. When I spoke with her insurance, they said they weren't going to pay because she stated the accident was my fault. I gave them the report number and told them it would be available in a few days. About a week later, they called me back and asked where I wanted to get my car fixed.
exactly ... its more of an insurance to ensure that the other party doesn't raise their ugly head..
That’s not true. The police report is an official document stating what happened.
Trust me, I worked in insurance for 5 years. The company determines fault - not the police report. Unless a driver is cited for a violation in regard to the incident, the report means nothing to the insurer when it comes to their determination of fault. I can't tell you the number of people who'd come or call "but the police report says the other person was...", Doesn't matter - the companies decided differently, now pay up.
Good for you. 🤷♂️ No police report I’ve had from an accident stated who is at fault. No one said it did either. It states what happened and if someone was cited for something. The insurance company uses it along with photos and damage assessment to determine fault. They ask for a police report every time you make a claim.
My understanding is that they use their insurance because it’s their fault. That way it doesn’t cost you anything and your rates don’t go up. If the damage is $2500 and they only pay $500 for a deductible and your insurance company pays $2000, your rate is going up and their insurance company got out of it for $500.
Yep. Plus, one of the things we pay insurance for is for SOMEONE ELSE to vouch for us. Always file with your own insurance, whether at fault or not.
Have their insurance company talk to your insurance company
More specifically: have your insurance company talk to theirs. Talk to the people who you’re paying money for a service, not the people who want to minimize how much they pay you.
I wouldn't even do that. What if their (at fault) insurance company goes "idk why they're making us talk to you when they're at fault".
I worked at Progressive for 19 yrs.
No, that's not normal.
Either go through them. Ideal.
Go through your insurance and let them subro. Keep in mind getting your deductible back isn't a guarantee.
That's great for the other guy's insurance company, instead of paying for the actual damages, they will pay you $500, let you take the hit for making a claim against your own policy which will probably raise your rates, and let your insurance company pay for everything else. It's a scam and dishonest, you should go through the other driver's insurance all the way. If they still give you a hard time, call your insurance and tell them what happened.
get that in writing - then complain to your state’s insurance regulators.
Always talk to your insurance and let them deal with the other insurance company. Don’t say yes to anything so freely.
Another point to consider: if you use your insurance your premium will most likely go up next time you renew your policy.
As others said, you should put your insurance company to resolve this with their insurance company and stay away from weird proposals. That's why you pay insurance.
CALL YOUR AGENT and let them sit it out. You can be 100% sure that the other insurance company does not have your best interests in mind.
If you’re insurance pays then your premiums go up or worst case you get cancelled.
Huh. I always go through my insurance. They go fuck up the other insurance.
The only time this has happened to me, the insurance of the rear ender sent me a check for damages of $2000 unsolicited. The repairs were like $5,000. My insurance got it fixed, the other insurance paid. My insurance said that I would probably have some issue suing in the future but if I wanted I could cash their check. And then I cashed the check. Done and done and done.
The at fault driver’s insurance company should pay for the repairs.
If you make a claim against your policy it will raise your premium.
Get a lawyer. Get checked out. If they total your car, make damn sure you know the value of your vehicle in 2023 terms. Used cars are worth more than ever before. If they don’t total it out, make sure you pursue a diminished value claim!
You don't get to choose how insurance subrogates (who pays) and I guarantee your insurer is no spring chicken and won't see 'at fault' and 'rear ended' on the same claim and say 'weird' APPROVE.
The minute you call your insurer and tell them you were rear ended and would like to file a claim they're going to get the other drivers information and make them pay the bill.
This is likely their off to settle your claim. Don’t take it! It could jeopardize your ability to recover if things go wonky. At fault insurance companies single goal is to pay out as little as possible.
If you can manage it pay your own way and allow your insurance to recover from them. This is especially important if you have injuries.
I used to work for a major insurance carrier. If we accepted liability and coverage was in order we would advance the deductible to the claimant if they wanted to use their own coverage.
NO! Also if u plan to sue for any physical injuries they will use this as a “settlement” and u won’t be able to get anything else
Contact your insurance. That's why you have it.
Not normal. The other party’s insurance either pays for everything to your satisfaction or file a claim with your own insurer.
Hell no. Talk to your insurance and let them handle the other or give you guidance. FFS these insurance companies are getting wild with their tactics!
Don't take their offer. I've been rear ended and ended up with my car being totaled by a teenager who had already gotten into three accidents. I was basically called constantly by the at-fault driver's insurance asking me to take "free money". I contacted my insurance company (USAA) and they explained the other insurance company was trying to get out of paying a bigger dollar amount because my insurance company went after the driver to pay for everything. If I had accepted, I would be on the hook for all the medical, repair, etc.
I think most are misunderstanding. The way that i read this is the at fault driver is saying we will pay for the deductible and rental as long as you have your insurance company process the claim. Meaning they will make sure repairs are equitable, done right and then process the claim through the at fault driver. Remember the OP has to requirement to process the claim through their insurance, they can do it all on their own, take the check, cash it and never repair or eventually come back and sue the at fault driver.
Sounds to me the at fault company it taking the lead to push this through insurance and overall help limit any extra paperwork or hassle that may arise from someone not going through insurance to fix. This does not at all appear to be trying to get the OP's company to pay for the repairs solely on the OP's behalf.
Always just talk to your insurance and they will handle the claim and repairs with the other insurance
It's very odd that the at-fault insurance company would not want to control the cost of the repair. You may have either misunderstood or they communicated it wrong.
It seems more likely they were offering to repair through a facility in their own repair facility network, in which case you wouldn't have to pay your collision deductible, and they would not dispute the length of time you need a rental.
After dealing with car insurance there's usually up to 3 offers the insurance company can give. I used to deal with them for my clients as well as my own accidents. I went from 80% at fault to 20% for me t-boning a woman that ran a stop sign.
>Their insurance company is offering to pay for my $500 deductible upfront, and a rental as long as I go through my insurance for repairs.
Honestly sounds like the guy who hit you got his friend to call you up and sound like his insurance. He doesn't want to pay for your repair or to damage his insurance. He wants a claim on your insurance and for your insurance to cover repairs...
NO. The driver admitted fault, it should be going through their insurance not yours.
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if you're not at fault, do not even talk to the other party. just go through claims department and let them sue the other insurer.
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I've been in my share of car accidents and I have never spoken to the "other guy's" insurance company. They have no fiduciary responsibility to look after you, protect you, etc. In an adversarial system, they are your adversary, not your friend. Besides, if you're not at fault, I believe your deductible is waived because the other guy's insurance is on the hook for the total loss.
Is this USA? Because this makes no sense. Your insurance is going to go after the other insurer no matter what. I can't imagine you are even legally allowed to stop them from doing so.
Hope you weren't injured. That sounds sketchy. Call your policy and an attorney.
Don’t call an attorney. This is between insurance companies.
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Sounds like they want you to settle for 500 dollars under the auspices of “let me pay your deductible”. I would not talk to them without consulting someone whose job isn’t to limit how much you get paid in damages.
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What state are you in, because in Michigan (where I live), insurance claims are run through your company, not the at-fault driver's.
Well...
I was going to ask, too. Because it isn't unusual for an at-fault driver's insurance company to offer you $500 here.
While Michigan is a no-fault state, if one party was clearly more than 50% at fault (usually indicated by having received a ticket for a moving violation associated with the accident) the other party can sue in small claims court under mini-tort for up to $1,000.
I've had three accidents where the other driver's insurance cut me a check for my deductible just by calling them and politely asking to save everyone the time of going to court. In each incident, their customer had either been ticketed, or was obviously at fault (by hitting my parked car while I was standing next to it).
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I did this & regretted the quality of repair
Did you get this information directly from their insurance? Or is this second hand coming from him? Seems sketchy to me.
Hell no. Make them pay for everything. A lady dented our Outback’s rear quarter panel with her door. Her insurance took responsibility, which is good cause it cost $2,200. They also paid for an intermediate sized rental that I talked into becoming a med size SUV. In your situation, they’re absolutely trying to fuck you into paying for the biggest part. Make them pay for it all.
Notify your insurance. This smells fishy. Maybe it's no big deal, or maybe symptoms of whiplash will show up a week from now and you'll start feeling really crappy. That's why they don't want your insurance company to know. And I hope you've been checked out
OP said the at-fault driver's insurance is offering the deductable&rental and asking OP to report the accident to his/her own insurer for all further costs. That sounds perfectly OK
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No fault insurance. I’d check with your insurance first.
Maliciously comply, provide their information and all communications to your insurance company, and allow them to pursue these jack wagons.
They're trying to screw you over, do not sign anything from them, only speak with your insurance company.
Any injuries to you? Any damages to your car?
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You go through your insurance and let them deal with everything that's primarily what they're there for. Pay your deductible and since it's not your fault you'll get that deductible back plus whatever it takes to make you whole again.
Possible you two have the same insurance company?
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Always talk to your insurance company, not the other person's.
If you are in an accident, I guarantee your insurance card says to call and tell them.
Is there insurance company some company you’ve heard of?
It's because if you file with your insurance - they will be sued after by your insurance company. When they win you will get your deductible back anyway. Basically they are just trying to keep this out of court. However - are they doing this for nefarious reasons as in they think they will need to pay a lot more if it goes to court and they think you may be a dummy who will lose themselves in the mess an auto accident becomes or are they just doing it to clear up the court system and handle things amiably. Highly unlikely it's the latter.
Were you hit by a Municipal vehicle? (police car, county plow truck, ambulance etc)
In some cases, Municipalities (town/county/state) are exempt from liability and you do indeed have to go through your own insurance, while they pay your deductible & rental if you do not have that coverage on your own policy. That was my first thought reading this question.
That’s a weird thing, if true. A cop car hitting me while chasing a perpetrator is bad but maybe I didn’t pay attention to the sirens or something. Arguable. A cop car stepping out of a Dunkin drive through and hitting me when I had the right of way shouldn’t be exempt. I would be stunned if that’s the case.
Different states handle it differently. If I remember correctly it's called "Sovereign Immunity". My car was parked when hit by a city owned vehicle and all they had to pay was my deductible. My insurance paid for the repairs, but it wasn't counted as an at-fault accident and my premiums did not go up.
Like everyone said. This is scumbaggy.
I've been hit before and I've never used my insurance. In fact the first time I ever got hit and called them, they told me to go with the at fault person's insurance first. And that's worked out for me.
Now if they start stalling and giving you BS, I'd call your insurance for consultation and at their advice use your policy. They will then go after the at fault party's insurance.
This is exactly why you avoid insurance all together, and just get an estimate and send them the bill once it’s done
I don't notify my own insurance company if the other party is clearly at fault and there is a police report that reflects that. Your insurance company will record the incident and it counts against you. (They SAY it doesn't count against you, but it does. They track the number of incidents you are in and even not at fault accidents count against you to a certain degree).
This is a scenario where those who aren't as experienced in dealing with insurance should probably get their own company involved, however.
edit I guess the downvoters are confused about how insurance works?
Get an attorney! They are trying to limit their outlay and care nothing about you. The attorney is worth the protection .
As a personal injury attorney I disagree. We don’t have enough info to say it is worth it here.l especially if there is no bodily injury. There is nothing to suggest OP cannot reject the offer and demand the other driver insurance cover the damages as assessed by one of their accepted shops.
This is something your insurance should be handling for you, even if they are paying nothing. You don’t need an attorney. Just say no and let them fight it out.
84740296169 t1_jeeyktx wrote
That's very weird. Typically you either:
I've never heard of an insurance company offering to pay your deductible and rental but not pay for the repairs. They are ultimately liable for the repairs.
Edit: To add a bit more, if this is to get you to sign a release, then that would be a violation of your policy (most likely) with your insurer. If you sign the release, your insurer can deny your claim. A subrogation clause in your policy typically says you cannot prejudice the insurer’s subrogation right.