Questions About Auto Insurance and Accidents

lilyowen

It strikes me as odd that people truly think this. Insurance companies prefer to not have to have money reserved for exposures, that truly frees up their capital for investment. Reserved money is like money in a savings account ... it doesn't even keep up with inflation.

Even if there was some manner in which reserved money could make the insurance companies a profit, I can assure you that acting disinterested in exposures, providing poor customer service, and ensuring delays and slow turnaround are not in the training manual of any insurer ... not in this century anyway. I am utterly shocked at this mindset ... and it is prevaliant among many educated and intelligent folks.

How many days of intrest on a settlement ... even thousands of exposures ... do you think need to occur to make up for one $15 million bad faith suit? (and the litigation costs to defend) How about for the missed opportunities to retain insureds as customers ... to convert claimants to customers ... what about their friends?

There may be a reson to stonewall and delay ... I can support that. But, in my opinion, it is not to make interest on money in their account, that is for sure.

Mr_Shiftright

I think most people approach insurance companies the same way they do airlines. They do business with them only because they have to, and one's as good (or bad) as another.

Again, I don't ever take the delays as "personal". I just assume that's how they operate and I never ever expect prompt or courteous service, any more than I expect a breezy, on-time, comfortable and enjoyable airplane ride in economy class. I act as impersonally, respectfully and efficiently as I can with them, and hope for the best, while being fully prepared for the worst.

houdini1

Are you saying that they set individual reserves even before they acknowledge that there has been a claim? No competent adjuster would set a claim reserve before a thorough investigation of the accident. That would include interviewing their own insured and the claimant. In this incident they have, so far, not even spoken to the claimant.

Also most insurers make most if not all their profits from investments. They don't give a hoot if they make an underwriting profit or not. Investing is their life's blood. As long as they are not investing their reserves in risky ventures I believe most, if not all states allow them to invest their loss reserves. Plus, in most cases, they are a lot smarter than the regulators !!

igozoomzoom

I've got a few more miscellaneous thoughts and opinions...

smc6278
First of all, I think AAA Insurance represents numerous 'partner' companies. Whether those insurers would be listed on the insurance card or if it would still be AAA because they sold they sold the policy- who knows? I am an AAA member (not sure whether it's worth the expense, but I've got another eight months to go) and I requested an insurance quote from AAA Insurance a few months back. I looked at it again just now and noticed that the best quote they found was with Metropolitan Casualty. Maybe part of the delay is AAA having to pass the claim on to the appropriate company? But an update to tell you they're working on it would be the professional, appropriate thing to do....

I'm just curious, what kind of car do you have and is it being repaired at the dealership's body shop? Have you had any updates on how the repairs are progressing? $8500 is a lot of damage and it may end up being more if they find additional problems as they take it apart. That is very common and they will submit a supplement for the additional expense to the insurance company (addendum would be a more accurate name for it, because that's what it is). In addition to repairing your vehicle, you will also need to file a Diminished Value claim after the car is repaired. If can give you some pointers on that fun process, but we'll cross that bridge a little later...

I know you were expecting 3-4 weeks for repairs, but it would be great if they finished a little sooner than you were expecting. At least then you will have the rental car off your mind...and getting your car back, even with all of the unsettled issues such as medical expenses, rental reimbursement, compensation for lost wages and other damages. It is still a relief to get your car back and have that hurdle out of the way!

By the way, take plenty of time to inspect your car with the body shop manager before you accept it! It was raining when I picked up my car, but I still got down on the ground and looked under the car to make sure everything looked kosher from that end. I was wet and grimy (and in a really pissy mood because of that) but there's nothing worse than getting home with the car, then finding a flaw that needs to be corrected.

Let us know how things are going and if you or your insurance company have heard anything from AAA yet.....(here's hoping!)

smc6278

Thank you so much for your response, and here is an update of where things are at now:

1. I have a 2004 Infiniti G35 w/ 94,000 miles on it. Damages were estimated at
$ 8,500.00 and my insurance was telling me it would most likely be a total loss. I did my own research and high end was $12,000, with the low at $9,995. My insurance actually decided to go ahead and repair my car. They valued it at $14,700.00, I was shocked.

2. I left a message for the AAA adjuster's manager, and she returned my call the next day. She told me their customer has not returned their calls, and they have no info for the claim other then what we gave them the first day. I personally had faxed the police report, and so did my adjuster but I guess it just got lost. She asked me to re send it to her. This was last week, and no update. It will be 2 weeks tomorrow that we filed the claim with AAA.

3. My body shop is updating me every 3 days on the progress, and they are aiming for the 3 week time line.

Any advice on the Diminished Value claim would be great. I intend on putting it on my claim.

the_big_al

Wow - I seem to have made myself a frequent poster. So it's back to the insurance again. I hit a deer last night... or rather I should say the deer hit me.

My insurance seems to be actually pretty good about taking care of it. I started out by just taking the car to the first shop I came to, but they weren't on the "certified list" so I went down the road to the one that was on the list. Luckily, I have heard good things about the place and the guy was nice and the place was clean and new.

The car goes in the shop tomorrow. It's still drivable, minus a headlight, which the officer so kindly reminded of about 10 minutes after I had decreased the deer population... We'll see how it goes. Luckily it's a comprehensive claim.

See more Car Pictures at CarSpace.com

any guesses on the estimate?? (note there is "minor minor damage to the passenger fender where the hood kinked it when it was opened.)

marsha7

It looks like there is creasing/bending at the drivers door and mirror, which may require door repair or replacement...Alex, I'll take damaged vehicles for $7,750.00 and see if I win the daily double...

Mr_Shiftright

I'll say about $6,000.

tidester

$5,219.

tidester, host
SUVs and Smart Shopper

kyfdx

That'll buff right out!

stever

Hmm, $50 for a light and $5 for duck tape. $8 if you want red duck tape to match. That's the estimate you'd get from me. :P

The deer carnage is getting pretty bad out there; Pf_Flyer's wife hit one a week or so ago and totaled out their Versa. The insurance companies will probably start imposing a roadkill surcharge. Half the police reports around seem to be deer hitting cars too, instead of the other way around.

Mr_Shiftright

$50 for a light? Maybe in 1965.

Anyway, I don't like to drive around with dented cars---it attracts cops and trouble.

robr2

$50 for a light?

A flashlight!! That is easily attached with duct tape.

marsha7

I hope we learn soon...the suspense is killing me, as I expect to use my "winnings" for a free vacation to Hawaii...

Mr_Shiftright

It's hard to estimate because we (or at least I) don't know the zip code. This can make an enormous difference in price. Some body shops charge only $75 in rural areas of the country, whereas where I live you can't even get someone to put down their coffee cup to talk to you for $75 an hour.

qbrozen

$1!!!

marsha7

Banish yon ZIP code, matey!!!...my bid still stands the test of time!!!...(unless it's wrong, of course, then it is YOUR fault for not telling me the Zip code...:):):)...)

the_big_al

It did... just literally minutes after the impact I was tagged for a headlight out. "Mr. Al, did you know you have a headlight out??"

Me: "Uh???? Yes sir officer sir, I just impacted a deer a couple miles back. Don't worry though, the deer is dead."

Officer: "Okay Mr Al. Get that fixed ASAP and have a nice night! Oh and here's my card if you insurance needs to talk to me. I'm going to snap a couple photos and then you can be on your way..."

The car went into the shop today. Total estimate is about $3k...

the_big_al

Oh... sorry ... zip code is 97524.... people must work cheap here. :shades:

stever

$3,000 sounds cheap. Bet they find a bit more "once they get in there".

You could send them to Rock Auto if you want to save more. They have headlamp assemblies for $50.79 for your Impala. Not OEM though.

Bummer about the deer and getting stopped by the cop almost immediately really adds insult to the injury.

qbrozen

woohoo! I was closest without going over! (i really was thinking no more than $4k... glad I went with the $1 bid. No where's Bob Barker?)

marsha7

"$3,000 sounds cheap. Bet they find a bit more "once they get in there"

First, I agree with steve...second, I ain't capitulating until the final quote is in...third, I think I've been robbed of my winning prize...me rights has been taken...me wants a lawyer, one of those scummy, ambulance-chasing...oh, wait...never mind...

Mr_Shiftright

I was figurin' they would paint the entire front of the car, since you mentioned a sprung hood and damaged right fender.

kyfdx

My local body shop charges $1200 for door-to-door re-paint.. (bumper, hood and fenders)..

That's the price for the end user... No telling what they charge on insurance quotes...

Mr_Shiftright

GEEZ, they charge $700 to refinish a bumper around here. Of course, I'm used to very *very high quality, in the past, because I had Porsches, but now with the MINI I wouldn't be so fussy and I'd probably shop around a lot.

kyfdx

This place specializes in high-end work... BMW, Mercedes, etc..

Real estate and labor are a little cheaper in the Midwest...

marsha7

"Real estate and labor are a little cheaper in the Midwest"...yeah, and if you are in Detroit, real estate isn't just cheaper, it is practically free, so that part of overhead has evaporated...kinda like Detroit...

Mr_Shiftright

They're gonna paint a new Benz door to door to factory spec for $1200? I find that stretches my credibility. :shades:

euphonium

the body shop only repairs "high end" high quality cars, does not mean the shop does high quality work.

Mr_Shiftright

Or, as in my case, the body work was excellent on one car I had done, but the paintwork was not-----because they body man was not the painter, and they had two different levels of skill.

kyfdx

It's my preferred body shop.. they do great work.. The BMW and Mercedes dealers recommend them...

Sheeessshhh...

marsha7

Did I win???...did I win???...am I advancing to Final Jeopardy???

the_big_al

They are -- entire front end blended into the doors. Car goes into the shop on monday. (actually it's already there since it's technically illegal on the road and "unsafe" to drive. Which is just as well since I'm in a really nice loaded up Flex right now...)

the_big_al

You'll find out in two weeks, give our take a couple days... That's when the final tally will come in.

Kirstie_H

Entries must be submitted on a 3x5 postcard by October 28, 2010, in order to be considered.

marsha7

Two weeks???...I gotta wait 2 weeks???...the suspense is killing me...I may have to go out and file suit against somebody that hasn't done anything wrong...oh, wait...I'm not supposed to admit we do that...

Mr_Shiftright

Gee that's CHEAP. The paint, primers, materials, disposal fees alone in California would cost $500 bucks I bet. Of course you can probably buy a house there for $200K, which is 5X less than me

the_big_al

I got the name and the address of the deer if you want... all correspondence and claims must be submitted in writing to him in the form of lead delivery... preferably.

marsha7

Caliber???...308, AR-15 or 7.62x39, AK47/AR15

stever

Will my personal car insurance cover me if I rent a car solely in my own name but let my wife or someone else drive the rental car?

Mr_Shiftright

I'm pretty sure it covers you or a "family member" (naturally, read the fine print--policies DO vary) but NOT if the rental car is on business use. Then *neither* you or a family member would be covered on a business trip.

Also, this coverage may mirror your personal car coverage...again, read your policy....so if you dropped collision on your personal car....yep, you may not get it on the rental.

Of course, your credit card company's rental car insurance coverage might pick up some of this..
As usual, a question like this opens up a rat's nest of insurance slime, wiggle and exception. Ever notice how few insurance questions are answered with a simple YES?

fushigi

Take 90 seconds to call your agent & find out. 15 minutes if you're using an anonymous phone-only company. As mentioned, policies will vary not only from company to company but from state to state.

stever

Take 90 seconds to call your agent & find out.

I doubt it. Kdyfx and I were kicking this around over in the Rental Car Experiences? discussion and the stuff I saw in a quick net search was all over the map.

And sometimes the credit card coverage is only for property damage I think, not necessarily medical or personal injury type claims.

Besides, my agent lives about 150' away, and I just saw him drive off in his truck 5 minutes ago, and he wasn't heading to the office (at least I've never seen him in his office wearing camo before). But I bet he's never hear that question before.

Mr_Shiftright

that's true--credit card insurance covers only property damage in most cases.

fushigi

Well, sure you're not going to talk to your agent off-hours. But if your agent can't answer the question during office hours you need a new agent. It's part of their job to understand your policy and be able to tell you about it.

And as I mentioned, policies vary all over the place so I don't think you'll get an answer via a net search.

lilyowen

you just asked two pretty different questions.

1. Are you letting your wife drive the car ... and does she live with you?

2. Are you letting "someone else" drive the car ... who are they and how are they related to you.

3. Yes ... your personal car insurance has no reason not to cover YOU ... but what do you need coverage for if someone else is driving the car?

houdini1

IMO the rental would be a temporary replacement auto and your wife and anyone else who drove it with your permission would be covered by your auto insurance...unless of course they're not !!

stever

Well, let's try to simply it a bit.

I rent a car in my own name, no other drivers are permitted by the contract.

My unrelated friend hops in and we go for a drive. He asks to drive and I let him. He t-bones another vehicle and the other driver suffers a broken leg.

Who pays?

The rental car insurance? (they would only cover the driver in the contract, right?).
His insurance? (He was driving someone else's car with their permission, albeit not the owner's permission).
My insurance? (I gave my buddy permission to drive "my" car).
My friend pays?
My friend is a deadbeat and has no insurance. Do I pay?

Interesting thread on flyertalk.com. Some of the posters say that both of us would be on the hook and our insurance would deny coverage.

houdini1

Your insurer pays. Insurance follows the auto, not the driver, and in this case he would be driving your temporary replacement vehicle with your permission.

Now maybe the guy who got T-boned was partially at fault, then we get into all those different types of partial, comparative, cumulative negligence issues !!

lilyowen

Check you policy ... my money (and it is little) goes this way. I don't think whether this is a temp sub, temp replacement etc.. really matters in this situation; however, typically unless a rental is for actual replacement of a policy vehicle (under repair, service, out of commision) then it isn't a temp sub.

1. If you chose to take the rental car insurance, they would deny based on exclusions that your friend was not a listed or permissive driver. Additionally, most states allow rental car insurance to be excess above any and all other forms of insurance.

2. His insurance would be primary. you gave him permissive use ... whether he's allowed to by contract or not is really not an issue regarding coverage through his policy. Furthermore, he is clearly an "insured" under his policy.

3. Your insurance will likely have some wording to the effect that will exclude coverage for people that are not "you" or a "resident relative" when in a non-owned vehicle.

4. Your friend is the tortfeasor here .. not you. Unless you can get hit with some form of negligent entrustment, you are not liable (in most venues) He ultimately will owe for the damages ... other than those you now owe contractually to the rental car company. This is really the root of who owes now ... this should have been the first question. Now, from here you can determine who's insurance owes.

5. see above. You let him drive ... if you didn't know he was a deadbeat ... and or have any other obvious flaws that would make him a risk to allow to drive the vehicle then really you don't owe. You just rented the vehicle, you didn't cause the damages.

6. After all of this, you really need to examine the "OTHER INSURANCE" part of the policy in all sections. All things being equal, the wording in this section will dictate who is primary/excess.