Expert: Bennie719 - 7/8/2009

Question
My son's car was backed into by another driver and his driver's door was damaged. He obtained insurance info and contacted that company.  3 months later the ins company tells him they have been unavailable to reach their insured. They stated "under Texas law they have to talk to their insured before they can determine if they have to pay".

Is this true and what does he need to do or say to get the claim paid?

Answer
Hi Jeanne,
This is standard with all companies, including yours.  I can't
approach your company with my side of the story "you backed
into me", show them an estimate and my damage and expect to
walk out with a check.

The insurance company is required to get a statement from their
insured and inspect the damage to his car.

Every party tends to report an accident using words of how the
accident occurred and any surrounding circumstances that puts
themselves in the best position.  Rarely will your son's
statement and the statement of the other driver even read like
they were in the same accident.

Although the insurance company of the other party owes certain
rights to their insured, he owes certain duties and obligations
to the insurance company among which is to cooperate with and
assist the insurance company in any matter concerning a claim
or a suit, and to do so in a TIMELY manner.  The full list
would take 1/4 page.  His failure to cooperate gives the
company grounds to cancel his policy at the term end.

It also allows the company to go ahead and pay your son's claim
(if they so choose).

Unfortunately, these days it seems like companies spend more
time trying to find loop holes to delay or avoid paying a
claim than they actually spend trying to settle a claim.

If you have collision on your son's car, I suggest that you
have them repair the car (less your deductible) and then
subrogate against the adverse company for reimbursement.
They will have more luck approaching the adverse company
than you have had.

If you don't have collision on the car, then I suggest that
you file a complaint with the Texas Department of Insurance.

Whatever happens, DO NOT file small claims court action
against the other driver.  If you file and he does not
show up in court, you automatically win by default.

That lets the insurance company off the hook, they won't
owe you a penny and you will have to try to collect from the
other driver and those odds are very slim.

I hope that you find this information helpful.  Your feed
back by rating my response will be appreciated.

Bennie
San Francisco Bay Area