Expert: Bennie719 - 11/27/2007

Question
we were hit by a car.the driver of the other car claimed,we hit her.we filed a
claim.our insurance co.paid out for our damages.the case went before an
arbratrator.the case was ruled in our favor.we received a payment from the
other drivers insurance company for the damage to our car.we put it in the
bank.latter our insurance company wrote us saying that that the other
company made a mistake,and please give them the money.we waited.no more
request.several months latter the other insurance company contacted us
,saying they  made a mistake,please pay them back,or they will go to
collections.can they do this?we were wondering if you have heard of this type
of thing before,and what the out comes have been.thanks mark

Answer
Hi Mark,
After your own company paid for your damage, they filed subrogation against the adverse company to recover the amount they had paid plus retrieval of your deductible.
The adverse company simply made a mistake by sending the money to you instead of your insurance company.
It is illegal and considered insurance fraud to collect from both companies.
You MUST return the money, the big question right now is to
which company.
Call your own company and see if they have been paid by the adverse company.  If not, send the money to your own insurance company after discussing with them if you should retain your deductible or if they want the full amount and will send you a check for reimbursement of your deductible.

If your own company has been paid, this means that the adverse company made a double payment and you must return the amount back to them.

If you had to pay your deductible, you need to get a clear understanding of who, how and when you will be reimbursed your deductible.

I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-27-07 12:45 PM PST