Expert: Doctor Settlement - 7/7/2006

Question
I just talked to my agent.  The claim was high enough that they have to send out an adjuster, in a week or so.  My agent told me that the adjuster will just verifying the damage and that it was the right vehicle.  Then when I asked him what the next step was he mentioned that the payment would be made directly to the body shop.  I wasn't thrill with that.  He then mentioned that there is a cash settlement option and that it was a percentage of the claim amount, but he didn't know what the percentage was and that I’d have to ask the adjuster.

Do you have any idea what the standard cash settlement percentage would be? (I understand that it would only be your best guess).

Thank You very much,

Casey

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Followup To

Question -
My car has sustained hail damage.  The damage is only a slight eye-sore.  I'm in the process of making a claim.  I've received one estimate and will be getting another.  I don't think it will be worth the hassle or inconvenience to have it repaired (body shop said they would have to keep the car for up to 2 weeks, $500 deductible).  Can I just cash the check I get from the insurance company and keep it?

Answer -
Hi Casey,

You have no obligation to repair the car, UNLESS it is owned by the bank AND the damage is substantial.  

In that case, the financing institution has a right to protect their collateral and they can insist to be included on the check because they will make the owner repair the vehicle.

But that situation is no worry in your case because, as you say, the damage is "only a slight eye-sore".

So, yes, go ahead and take the check and do with it whatever you wish.

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com

Answer
Hello again, Casey,

I am going to put out a request for any insurance adjuster experts to come to my aid here because I am totally unfamiliar with the policy provisions this agent is telling you about.

I have always thought that if you own the car outright, and it sustains damage, the company has to pay for the cost to restore the car, less your deductible, and IT IS STRICTLY YOUR OWN CHOICE AS TO WHETHER OR NOT YOU WILL REPAIR ALL OR PART OR NONE OF THE DAMAGE.  

Here are two ways I would approach it. First, write to the agent (do NOT call), recite what he told you and ask him to cite you to the authority for that proposition. He is basically telling you that the insurance policy is a full employment method for auto body industry: you get full payment if you give them the work, otherwise we penalize you if you refuse to give them the work.  

Please let me know what his authority is for that unusual position.

Second, I would contact your state insurance commissioner http://www.settlementcentral.com/links.php

Run it by that office and see if they are aware of any policy provisions that allow the insurance industry to benefit at the expense of the injured party.  Let me know what they are saying because if this is in a policy, someone at the insurance commissioner's office ought to see that it is a grossly unfair business practice and it must be stopped.  

But then, that is just my opinion and who am I?  Just a single trial attorney who does not have the big bucks that the insurance industry has to romance conservative legislators around the country by hosting "appreciation reception" fund raisers paid for with OUR PREMIUM dollars. So I guess it is entirely possible that they convinced some officials with their money payoffs, ur, I mean "contributions".  But I would still like to see the authority.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com