partial insurance deductible refund?

Question

I was in a car accident. I had right of way, I colided with lady who did not yield. I went through my insurance for repair, as waiting for the other insurance co. would take too long. I had to pay my deductible for repair. My insurance went after the other company to get reimbursed for the repair. Today I got a check with a refund of 65% of my deductible. Can they do that? What can I do to collect the rest of my deductible? The other driver's insurance co. is responsible for the damage caused by their client. Why should I lose any money on that?

Chris: thanks for the answer. You sound like you know what you're talking about. The other person had a stop sign, I did not. Even if I was driving sitting backwards on my steering wheel with my eyes closed, it still is 100% her fault as far as I'm concerned. I think this is just a lousy game insurance companies play to lower their loses. The judge in court said it was her fault and she admitted it. Who are they to contradict that? I'm tempted to fight this just for the principle, even though it isn't worth it.

Oops, forgot to mention, this was in Illinois. According to police report and court, it was 100% her fault. What's the point of having law and courts if anyone can ignore their judgment?

I think I still didn't explain it clearly. My insurance Co. went into arbitration with the other co. There was an arbitrator assigned on my side. Perhaps it is "last clear chance" case and arbitrator on my side had a bad day and didn't feel like arguing that it was 100% not my fault and went with 35-65 offer of the other company?
I mention taking this case to court, because I feel that insurance companies are done with eachother and won't want to go back to this closed case. 35% translates to $175 in this case and while that's still a considerable amount, time I'd spend arguing about this in court is even more valuable and thus probably not worth it.
I'm not sure if I want my insurance co. to pay my claim. This will only lead to them increasing my rate. I want them to go after the other company and get them to take full responsibility for an accident caused by their client.
Thanks for your opinions and advice

Answer 1

You didn't say where this happened, but almost all states have comparative negligence. That means that you can be held partially responsible for an accident, and would recover "less" your negligence. It is very common for insurance carriers when recovering from the at fault party's insurance to negotiate this as comparative negligence is pretty easily proven and it's hard to get 100% back. So what's happened is your carrier got 65% of the total damages back, so they paid you 65% of your deductible. There is nothing you can do, except file an action in small claims court for the remaining 35%; and your chances are not necessarily better.

One of the things your company should have told you when explaining the recovery process is that unless they get 100% of the damages, you will not get 100% of your deductible. However, there is nothing you can do about that miscommunication. You could complain to the supervisor if you weren't aware and see if they will make an exception. However, remember that you were made whole by using your company (except for the deductible you paid) and if you'd gone directly through the other company, you would have gotten an offer of 65% of your total damage, and would have been out a lot more than that deductible.

**What the judge said in traffic court does not apply. That's a criminal matter, and insurance is a civil matter (think the OJ Simpson trials- not guilty for criminal and responsible in the civil). Arbitration is binding too, so there's no further action that can be taken. That is it. The companies agree to use that forum and the arbitrator's decision is final. Sorry.

If you were not considered "at fault" or the majority negligent, your policy may not go up. You should ask about that.

Answer 2

I am a former claims person and I think Chris has it right for the most part. I am confused by something however. Most insurace companies belong to an arbitration panel to keep their costs down. The decisions on the panel are binding on the insurance companies and prevent them from having to "duke it out" in court. This sounds like a classic case of a claim that your insurance company should have taken to arbitration. Based on the police report and other information, it appears that the other party was 100% at fault. The only thing I can think of falls under something called "last clear chance (a specific argument under the comparative neglegence thing that Chirs was talking about). If, in the view of the two insurance companies, you had a chance to avoid the accident (even if it was not your fault) then they can put percentage points toward you on the claim. 35%, however, is very high.

Here is the deal. Insurance companies are requried to handle claims "in good faith." If they do not, they are subject to fine by the state where they operate and to civil suit by you. However, it is very difficult to prove that an insurance company operated in bad faith. What I would do is call your company and ask them why they did not try to arbitrate the claim. If they can't give you a good reason, tell them that you do not think they have operated in good faith. Those "code words" could be enough to get your insurance company to pay your claim.

Good luck!

Answer 3

There are several states that impose a fault to each party, and it seems like you have been deemed to be partially at fault. If you live in a "no-fault" state, then I can't explain why they have only given you a portion of your deductible back. Although you may think that you had nothing to do with the accident, the adjuster apparently feels as though you did something negligent to put yourself in the position to be hit. To collect the full deductible, speak to your insurance company and explain why you feel you are not responsible, providing any proof you may have.

Answer 4

It's possible that your insurance company hasn't collected all their money yet from the claimants insurance company. As they collect more, you'll get bits and pieces of your deductible back.