Expert: Ron Cercone - 1/23/2009

Question
About a month ago we received a letter from State Farm wanting our
insurance information so they could file a claim against it for their customer
who had been in an accident and given them our license plate number as the
car that had done the damage.  The car color was wrong, and it supposedly
happened in a city 300 miles away from us.  We called the adjustor and told
him we had no knowledge of this claim and discussed the discrepancies.  He
indicated that it sounded like an error, and we ended the conversation feeling
assured that was the end of it.  Today we received a letter from a collections
agency (T.L. Thompson & Assoc) informing us of a subrogation claim, and
advising us that if we do not respond in writing within 30 days they will
assume the claim is valid and will "pursue all means available under the law
to recover the amount of the damages sustained in the loss".  How do we deal
with this so this may be put to bed for good?  Do we have the right to get a
copy of the claim/police report/whatever so that we can prove that we were
not involved? How do you go about doing that?  
Thanks in advance for your guidance.

Answer
Hello Marsha,

I can't believe my ears. This is highly unusual and almost sounds like a scam to me. If all anyone had to do to make a claim under their uninsured/underinsured motorist coverage was pick out any car in a parking lot and write down that license number and turn it in, everyone would be doing it.

And what about "innocent until proven guilty"? This is still America. A collection agency can't pursue you legally if you don't have a court judgment against you. And I'm suspicious about this TL Thompson Assoc. Most insurers will pursue subrogation themselves for years before contacting a collection agency.

I'm no attorney, but I think an attorney would tell you to make your own police report for fraud. If the local police won't do it, make your complaint direct to your local county district attorney's office. In addition, I would contact your state department of consumer affairs, bureau of automotive repair, since it involve alleged automobile damage. The other car had to be repaired somewhere, and it may be that the repair shop is in on the scam.

If indeed that letter was from a real State Farm office, then that claim office is screwed up. Get the claim managers name and fax him a letter of explanation. If he does not fix the problem, fax your next letter to the State Farm CEO (Ed Rust last time I checked) in Illinois. If the problem persists with State Farm, report it to your state Department of Insurance

And yes, of course you have the right to a copy of the police report. And they, the collection agency and the insurer should provide you with a copy if they want their money from you.

And here is another possibility. Just turn "the claim" into your own auto insurer. They have duty to defend you as well as to investigate and pay any damage you may have caused. Let them fight it out with State Farm. You can't be cancelled are assessed more premium from your own insurer if you are not proven at fault.