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Auto Insurance Claims/Ex Sister-in-law leaves car damaged

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Expert: webfoot - 2/18/2007


Question
My father co-signed for my Brother's and SIL's auto.  When separating, SIL took over her car and insurance payments.  Court ordered her to either get loan in her name or turn over the car by end of Jan. 2007.  She turned over the car after hitting a deer, reporting damage to State Farm and cashing a check on Jan. 2, 2007 for over $800.  (she had $500 deductible - damage was over $1,300)  Who is liable?  Isn't this fraud that she turned the car over with damage not repaired?  How is State Farm without blame for their part in allowing her to not fix the car?  Isn't there some provision for insurance companies to make sure that the auto covered gets the proper repair due? My brother's attorney says small claim court procedure will potentially cost more than it is worth.
Where is the justice?  Any advice would be appreciated.

Answer
Well as far as you're brother's statement about small claims court, I don't know where you live. In my state of GA, it's under $100 in court fees and there is no reason why an attorney would need to be involved.  

Statefarm has a responsibility to the owner or insured and/or lien holder.  If there was a lien holder then their name should have been on the check as well or that of a body shop.  If SIL was not the owner or the lien holder wasn't protected, then Statefarm is liable.  It is not fraudulent for someone to cash a check for the repair of their own, paid for vehicle and choose not to repair it.

Obviously, I'd have to have a lot more detailed info and see the policy to give you an exact answer.
Good luck!

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Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.

Experience

20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background

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