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Message |
    
Smarty Jones
Citizen
Username: Birdstone
Post Number: 614
Registered: 10-2005
| | Posted on Tuesday, May 9, 2006 - 2:47 pm: | 
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So my sister, a new resident to NJ, gets rear-ended at a stoplight by the driver behind her (no injuries, just car damage). She is asking me advice on what to do, and what will happen?
Her insurance company told her to file a claim with her own insurance, and if they decide to go after the other carrier to recover their costs, they will, but that she's still responsible for her out of pocket expenses and deductible ($1,000+)
I don't have a clue what to tell her, because I haven't a clue. Does her own insurance handle this? How will she recover the cost of her deductible? If she's not at fault, why wouldn't the other insurer fully pay for this, and if that's the case, how do you take it up with the faulty driver's insurance?
Any advice would be appreciated. |
C Bataille
Citizen
Username: Nakaille
Post Number: 2605
Registered: 5-2001
| | Posted on Tuesday, May 9, 2006 - 2:52 pm: |
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Unless the parties agree to settle privately (i.e. not involving insurance or police) each person's insurance pays the cost of repair (minus deductible, of course.) NJ is a semi "no fault" place meaning you do not have to prove your innocence in order to make an insurance claim. Unfortunately having any kind of "experience" tends to lower your insurability rating, thus potentially increasing your insurance costs. |
mjh
Supporter
Username: Mjh
Post Number: 512
Registered: 5-2001
| | Posted on Tuesday, May 9, 2006 - 2:58 pm: |
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C--
That wasn't my experience, so I'm wondering if you are citing NJ law? I was rammed by someone turning left as I proceeded through a green light, and his insurance paid the cost of repair.
However, it is true that just involving your company in the "incident" can cause a rate increase (even if you are not deemed to be at fault). If you can get the other guys company to pay without involving your own company, it's probably the best.
If the repair is less (or close to) your deductible, that would be another reason not to bother with your company. Consider your insurance for catastrophic loss only.
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sportsnut
Citizen
Username: Sportsnut
Post Number: 2404
Registered: 10-2001
| | Posted on Tuesday, May 9, 2006 - 3:00 pm: |
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When my son had an accident that wasn't his fault the insurance company went after the other party's insurance carrier to recover my deductible. It seems to me that your sister shouldn't be out of pocket any of the expenses here since it wasn't her fault. I believe the term is subrogation - when your insurance goes after the other party's carrier in an attempt to recover damages.
The unfortunate part is that she will have to shell out the 1K and then recover it sometime later. |
Jersey Boy
Citizen
Username: Jersey_boy
Post Number: 752
Registered: 1-2006
| | Posted on Tuesday, May 9, 2006 - 3:04 pm: |
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These are probably Insurance Co. specific questions.
Deductibles vary. If that's what the insurance co. says, that's probably in the policy. Didn't she read it? (Just kidding.)
I'll bet they "decide" to go after the other company only if the cost of repair goes above the deductible.
This is why people try to not report these little fender benders. You get no help from the insurance, BUT your monthly premium goes up. Why report it, if you're going to have to pay $1000 anyway?
I feel a rant coming on, but I will not foul your thread with it.
J.B. |
VU
Citizen
Username: Emwarden
Post Number: 12
Registered: 1-2006
| | Posted on Tuesday, May 9, 2006 - 3:04 pm: |
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My experience is that if she is not at fault and there is no argument as to who is responsible her best course of action is to file directly with the other drivers insurance.
You really have two options
- File with your own insurance company, you will be responsible for the deductible and the limits of your policy. Assuming that it is not contested and not your fault your insurance company should go after the other to cover everything including your deductible. To make you completely whole. the reason they charge you the deductible is to cover themselves incase they lose and cant recover the damages.
- File with the other drivers.
I have had both happen. I prefer to keep my insurance company out of the loop at all costs due to potential rate hikes. One worked out fine and the other insurance company covered everything including rental car I just had to get the body work done by one of their approved list of repair shops.
Another time the other driver started changing his story and I was having a hard time so I just filed with my insurance and they eventually recouped all costs. Nothing out of pocket for me. I did have a police report that stated the other driver was at fault. |
sportsnut
Citizen
Username: Sportsnut
Post Number: 2405
Registered: 10-2001
| | Posted on Tuesday, May 9, 2006 - 3:12 pm: |
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Just a word of caution about not reporting to your insurance company - Years ago I was involved in an accident that wasn't my fault (aren't they all) where a young lady backed out of a parking spot and into the side of my car. The police report was poorly worded and she told me some song and dance about a relative of hers being in the auto body shop business so she wasn't going to report it to her insurance. The damage to my car was about $500 so I didn't report it to my insurance company. Lo and behold she reported it to hers and they went after me for the damage to her car. I got a very nasty letter from Geico threatening to not pay her damages since I failed to report the accident within 24 hours. Ultimately they paid but then chose to not renew me when the policy lapsed. Not saying that it always happens but it was a bummer because every other company asked whether I had been denied coverage, dropped or not renewed and I had to reply yes. |
greenetree
Supporter
Username: Greenetree
Post Number: 7619
Registered: 5-2001
| | Posted on Tuesday, May 9, 2006 - 3:24 pm: |
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I had this happen. I won't go into all the details, but if the other driver is 100% at fault (and it is likely that their insurance will give in subrogation if it happened as she says), she will have to pay her deductible and get it back from the other driver's insurance company.
My car was in the shop for 10 weeks and I had the rental car longer than my own insurance covered. The other carrier paid back my deductible and the rental car extra days. Because I have the lawsuit threshold, they did not pay back my medical deductible (pissed me off).
I'm with Sports; if you are not at fault, there is no reason for you not to report it. |
Bob K
Supporter
Username: Bobk
Post Number: 11464
Registered: 5-2001
| | Posted on Tuesday, May 9, 2006 - 3:34 pm: |
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No fault applies only to bodily injury, not property damage.
Most insurers will subrogate against the insurer of an at fault party, but it can take a year or so to get the money back. Sometimes it is faster, sometimes not.
You can also file a claim against the other parties insurance company. This is a case of what insurers call "clear" liability since your sister was hit from behind. We have done this and had no trouble getting the other party's insurer (NJ Manufacturers) to pay in a more complicated circumstance.
Did Sis get full information from the other party? Who is the insurance company? Some own up faster than others.
In any event she should report the claim to her insurer and explain that she is trying to collect from the other carrier. She shouldn't be penalized by her carrier under those circumstances, especially if she hasn't had a history of accidents in the last few years.
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mlj
Citizen
Username: Mlj
Post Number: 222
Registered: 6-2001
| | Posted on Tuesday, May 9, 2006 - 4:05 pm: |
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Does she have a police accident report? At any rate, my advice is that, in addition to reporting the accident to her own insurance company, she should, herself, contact the other party's insurance company and either provide them with police accident report, if she has one, and provide the details of the accident. The other party may not have reported it to their carrier.
Since she was rear ended, the other party is at fault. The other party's insurance company will investigate, (this is where it gets dicey if you do not have an accident report). They will question their insured, they will want to send someone to inspect your sister's damaged vehicle (or she can bring the vehicle to one of their approved shops for inspection and estimate). After this process, they will make an offer of settlement to your sister.
End of story. Don't agonize about rates going up or any other b-s.
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Tom Reingold
Supporter
Username: Noglider
Post Number: 14170
Registered: 1-2003
| | Posted on Tuesday, May 9, 2006 - 4:16 pm: |
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I hope there is a police report and that it says the rear-ender driver is completely at fault.
I've had two similar accidents. I didn't have to pay anything, and I didn't even have to shell anything out and receive compensation. The insurance just paid the bills directly. In the second case, I didn't even see the bill and don't know how much it cost to fix my car.
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C Bataille
Citizen
Username: Nakaille
Post Number: 2606
Registered: 5-2001
| | Posted on Wednesday, May 10, 2006 - 8:19 am: |
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Smarty - sorry for the misinfo. BobK's advice is probably the best. I think he works in the field. |
Earlster
Supporter
Username: Earlster
Post Number: 1537
Registered: 8-2003
| | Posted on Wednesday, May 10, 2006 - 9:15 am: |
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What Bob K said. Both me and my wife got rear ended once. Tell your insurance about it, but also tell them that you are going after the other insurance yourself. Only get your company to go after them if the other company doesn't pay, or the driver didn't have insurance.
How bad is the damage? Is it just cosmetic or does it need real work? If it's just scratches to the bumper and you don't mind them, get an estimate from the insurance and collect the cash.
We got well over a grant for a scratched up rear bumper.  |
Brett
Citizen
Username: Bmalibashksa
Post Number: 2309
Registered: 7-2003
| | Posted on Wednesday, May 10, 2006 - 9:25 am: |
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Only $50 for a bumper?
 |
Earlster
Supporter
Username: Earlster
Post Number: 1539
Registered: 8-2003
| | Posted on Wednesday, May 10, 2006 - 12:06 pm: |
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d t who cares. |
catmanjac
Citizen
Username: Catmanjac
Post Number: 191
Registered: 2-2004
| | Posted on Thursday, May 11, 2006 - 2:18 pm: |
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"NO FAULT" only applies to medical coverage in accidents. Your own insurance pays doctor/hospital bills (less copayments, deductables, etc.) regardless of who caused the accident.
If the police report (I hope she got one) indicates that the driver who rear-ended her caused the accident, which is usually the case, then that driver's insurance pays for all the damage, no deductible or anything. A claim can be placed with either. If placed with her own insurance, they then "subrogate" the claim, meaning that they collect from the other driver's insurance company for the damage. She is not responsible for any deductable at all. The other driver's insurance pays for all physical damage. And no insurance increase or penalty will be applied to her insurance. She is entitled to rental reimbursement during the time it takes to repair her car, too.
These are the facts. |
greenetree
Supporter
Username: Greenetree
Post Number: 7658
Registered: 5-2001
| | Posted on Thursday, May 11, 2006 - 3:04 pm: |
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Actually, the medical coverage depends on what option you have on your policy. You can choose to not have your "group" (or whatever) medical coverage for your auto. In that case, you have the medical coverage provided by your insurance policy. Never having had that, I have no idea what it is like. But, my auto policy medical deductible applied to my medical bills in my accident, even tho I used my regular health insurance.
If I did not have the lawsuit threshold option, I would have been entitled to get my $500 medical deductible back from the other insurance company. That $500 deductible had nothing to do with how my health insurance works normally. |
catmanjac
Citizen
Username: Catmanjac
Post Number: 192
Registered: 2-2004
| | Posted on Thursday, May 11, 2006 - 3:09 pm: |
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Wrong. The lawsuit threshold option limits your ability to sue, depending on the severity and type of injuries suffered if caused by the other driver. Neither option will get back your personal injury protection (medical) deductible. |
greenetree
Supporter
Username: Greenetree
Post Number: 7661
Registered: 5-2001
| | Posted on Thursday, May 11, 2006 - 3:25 pm: |
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Did I not just say that? How is my clarification of how medical coverage is paid different from what you said?
I know what the lawsuit threshold limits. I also know, from personal experience and challenging it, that if you have the option, are 0% at fault, and engender medical bills, that the other insurer does not have to pay your medical deductible.
I have no problem limiting punitive damages. It pisses me off, tho, that I had to pay out of pocket for the medical deductible, even tho my auto deductible, rental car overage, etc. were reimbursed.
It's a •••••• loophole. |
catmanjac
Citizen
Username: Catmanjac
Post Number: 193
Registered: 2-2004
| | Posted on Thursday, May 11, 2006 - 3:32 pm: |
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You had stated that if you did not have the lawsuit threshold, you would have been able to recoup the $500 medical deductable from the other driver's insurance. That is incorrect. Lawsuit threshold and medical deductable are two entirely separate components of auto insurance. |
Smarty Jones
Citizen
Username: Birdstone
Post Number: 623
Registered: 10-2005
| | Posted on Saturday, May 13, 2006 - 9:25 pm: |
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Ok, thanks everyone for your help, I really appreciate it. It's all resolved, here's how it worked out.....based upon majority opinion here, I advised that she deal with her insurance, and also place a call to other drivers insurance. After reporting to both insurers and getting the car to the auto body shop, the other insurance agency called and agreed to cover 100% of all expenses, no deductible charges. Evidently, there was no disputing of the incident. Had there been a dispute, this would have ended up differently.
Also, her own personal medical was used for the hospital visit that evening. Both Auto insurers offered to pay medical, but suggested using personal medical for variety of reasons that made sense, and didn't cost anything additional. Quite a learning experience, overall.
Time to revisit myown policy, to see what makes sense going forward. |
Joan
Supporter
Username: Joancrystal
Post Number: 7424
Registered: 5-2001
| | Posted on Sunday, May 14, 2006 - 7:00 am: |
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When a car hit our house last year and we finally found out who was responsible (thanks to some great detective work by our next door neighbor who had two cars totaled in the same accident), we were given the option of filing with our own insurance company or with the company which insured the owner of the vehicle that did the damage. However, we were warned by our insurance company's representative that if we filed with the other insurance company, were likely to get a far smaller settlement due to possible limitations in the driver's insurance policy. We filed with our own insurance company,who went after the driver's insurance company on our behalf and they were even able to recover our deductible -- though that took about a year.
Best bet may be to check with her insurance carrier and get some facts about her coverage and what she can expect if she tries to file with the other driver's insurance company directly (assuming this is possible). |
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