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Auto Insurance Claims/What if insurance companies' estimates disagree?

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Expert: - 2/2/2012


Question
I was in an auto accident with the other driver at fault.  I contacted my insurance company while still on the scene to be sure I got all the information I needed from the other driver.  My company started a claim, had me get an estimate, and determined the car was a total loss, and gave me a figure they would pay.  They told me I had the option to take that payment, a lesser payment and keep the car as salvage, or to have the other driver's insurance make an offer.  They say I would be paid the amount the car is worth minus my deductible, and would get the deductible back when the other insurance company pays off.  But now the other company has contacted me and seems to be just starting their claims process, in fact they want me to have one of their adjusters look at the vehicle.  So I am wondering, what if the other company were to determine the car was not a total loss, and I had accepted my company's offer?  Should my company have made that offer when the other company had not agreed to the amount (or even that their driver was at fault) yet?  I specifically asked if there were anything I would need to do to get my deductible back and was told no, it would all be taken care of.  But I can't see how that could be the case without agreement by the other company.

Answer
No need to worry.  You can settle with either company.  If you settle with your company, they will subrogate against the other insurer to recover what they paid plus your deductible.  In very rare cases, the companies disagree about repair or settlement issues.  If this is the case, your company would file arbitration and an independent party would decide who was correct.  But as I said, this is very rare and not likely.  It would be impractical for the companies to agree on everything before setttling claims.  You should just settle with whomever you prefer, keeping in mind you'll probably have to wait several months to get your deductible back if you choose your company.

Auto Insurance Claims

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Claims Guy

Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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