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Was sent checks from insurance company what should I do?

I had a car accident on 9/28/15 and I live in Alabama after going through the claims process with Geico (my insurance company) I was told it was 70% my fault due to the impact on the vehicle and 30% the other drivers fault due to him not obeying the right away law. A week later I had my car repaired through Geico where I paid a $1000 deductible. Now almost a month later I have received 2 checks from the other driver's insurance company for the full amount of repairs from a collision center's estimate and one for being out a car for 7 days. Initially I assumed since per the insurance company it said to be mostly my fault and I was out of $1000. Should I cash these checks or send them back to the insurance company?

Answer
LaQuan,

Thank you for your question.

Your claim was evidently considered a Comparative Negligence case whereas you were considered to be 70% at fault and the other driver responsible for 30%.
Each party will be responsible for their share and as such, the insurer's will subrogate (seek recovery) each other for their percentage of pay-out. Geico to recover 30% of your repair cost and owe the other party 70% of theirs.

Because your insurer (GEICO) covered your loss under your policy, they would be entitled to recover their pay-out from the at-fault driver and/or their insurer for 30%. You in turn would recover 30% ($300.00) of your deductible. GEICO would owe the other insurer for 70% of their pay-out plus 70% of their insured's deductible if applicable.

The likelihood is your insurer (GEICO) has yet to submit their subrogation claim against the at-fault party's insurer and the other insurer has made payment to you so they can close their file.

To avoid potential problems 'down the road' you may wish to contact GEICO to let them know you received these monies and ask for their direction...or...

You may wish to deposit the funds in your savings and retain and save them for if and when GEICO comes seeking them once they are notified by the other party's insurer that they have paid you. You will then likely be asked to provide them the monies less your portion of the deductible.

I know this can be confusing and I hope I have explained it so you can understand the process better and what to do with the monies received!

Thanks again for your question.

Barrett  

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Barrett Smith

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Auto Claim and Collision Repair issues including quality and thoroughness of repair, Diminished Value, Total Loss settlement valuation, Appraisal Clause matters, Expert Testimony, pre-purchase inspections and others. While having been a Senior Claims Adjuster, I am not licensed to practice law and cannot provide legal counsel. I will provide replies as friendly and informal advice based upon my experiences and those of our clients as possible. For more information on our offerings please visit www.AutoDamageExperts.com For more informatin on our offerings please visit www.AutoDamageExperts.com

Experience

I grew up working in a family owned auto body repair business my father owned and operated in Alaska and after leaving the US Air Force I started my own repair facility in Florida. I later became a senior claims adjuster for a national auto insurer and later managed two GM dealership collision centers. I started another shop which was recognized as a "Top Shop" in central Florida for over 15 years winning numerous local accolades and awards such as Business of the Year. In 2001 I developed Auto Damage Experts to provide its services nation wide and to all segments illustrating balance and equity for all ADE clients. For more information please visit www.AutoDamageExperts.com

Organizations
ASA (Automotive Service Association), SCRS, CCRE and others... For more information please request CV or visit www.AutoDamageExperts.com

Publications
Local and national publications including but not limited to Auto Body Repair News (ABRN), Body Shop Business (BSB) and others. For more information please request CV or visit www.AutoDamageExperts.com

Education/Credentials
ASE Master Certified in collision repair/refinishing including damage diagnosis and estimating. Please request CV or visit www.AutoDamageExperts.com

Awards and Honors
As a quality Collision Repair facility owner, we received Top shop, Small Business of the year and other awards and accolades. Please request CV for additional information in this regard.

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ADE provides services to all segments including Legal professionals, Consumers, Auto Dealers, Insurers, Governmental and judicial entities. For more information please request CV or visit www.AutoDamageExperts.com

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