Expert: Charlie Barone - 10/1/2009

Question
I was in an accident, the other driver hit me, though she is claiming that I hit her.  The police issued no citations to either party.  My insurance denied her claim, and hers denied mine.  My insurance company told me that in order to continue with the claim, in order for them to ask for reimbursement, I must first repair my car.  Is this true?  What if I dont want to repair my car if the other party is not going to pay.  I dont have a choice in the matter?  I am going to be forced to repair my car and pay my $500 deductible without knowing if I will be compensated or not until after the fact? I want to wait and see if I will be reimbursed before paying $500. I just have to risk eating my deductible money? Is this really how it works?

Answer
Amy,

This is the first I have ever heard an insurance company (particularly your own company) make a requirement that you repair the car. All your insurance company has to do in order to subrogate the claim with the other party's insurer is to pay the claim. You would have to file the claim under your own coverage in order for your company to initiate the subrogation process. However, there is nothing in any state law I am aware of that necessitates that a policyholder must spend the funds in any way. That money belongs to you, regardless of how you spend the funds. You are to be indemnified for the loss. You can repair none, part of or all the damage at your discretion.

Charlie