Expert: Richard Hixenbaugh - 7/15/2011

Question
QUESTION: I was hit along with another car by a driver who has Safe Auto (state minimum coverage). The total amount their policy will cover is $10,000 for property loss.
Unfortunately I only carried liability on my car. My car was a total loss and value by Safe Auto at $5049 dollars. The other car was a brand new Acura and repairs were done that exceeded $13,000. I’ve learned that the $10,000 will be split according to the percentage of total dollars. Meaning I’m going to end up losing about 2 or 3 thousand. I’m planning on suing the driver for the difference.

The problem I’m having is that Safe auto and the insurance company for the Acura driver and taking forever to come up with the amount they are owed thus holding up the whole process. The Acura driver has his car back and four months later I have no money and no car. What options do I have?

ANSWER: Hi Frank,

If the repairs to the other car were done 4 months ago, this is too long. You should mail a letter to the insurance company by certified mail / return receipt requested. In you letter you should demand that they provide you with a written accouinting of the claim and provide you with an offer within 10 days. If they do not answer or comply with your demand then you should file suit against the at fault driver. Unfortunately, if the driver only had minimum coverage, he likley does not have any money. So even if you win your court case, you may not get any money for a long time. You may have to pay a portion of the cost of the repairs yourself.

I hope this helps
Richard Hixenbaugh


---------- FOLLOW-UP ----------

QUESTION: Thanks for your help.
Would my filing suit against the driver bo done in small claims?

Should I tell the insurance company that after the 10 days I will sue their client?

Should I just mail to claims dept or attn to the claims adjuster?

Answer
Hi Frank,

You would send your letter directly to the adjuster you have been dealing with. Yes you should say that you will file suit if they do not respond.

You may be able to file in small claims court. However, you would need to check with a licensed attorney in your state to be learn the limits of small claims court as well as what county you should file the suit in. In some cases it is the county where the accident happened and in other case you would file in the county where the at faut driver lives. Only an attorney can provide you with the correct information for your state.

I hope this helps
Richard Hixenbaugh