i got hit by a person who didn't have enough insurance to pay me.
we traded infos and i got his claim info stuff and when i went to the body shop they told me that he didnt have enough insurance to pay for the damage.. only $5,000
im not mad at him or anything because the guy actually looks like he have alot of money and i understand the fact it was an accident and he was very sorry for it.
so how do i deal with this? should i claim it to my insurance instead? how does this thing work?
2006-10-16 13:18:13 · 8 answers · asked by istandready06 1 in Cars & Transportation ➔ Insurance & Registration
doesn't have alot of money.. sorry for the typo... my car right now.. as of now.. is still at 0% coz of claiming problems..
2006-10-16 13:25:02 · update #1
like they say.. you cant get blood out of a stone.. so basicly im gonna claim on my insurance tomorrow.
2006-10-16 13:34:10 · update #2
Hopefully, you have "uninsured or underinsured motorist" coverage that will take care of the amount not covered by the other driver's insurance. If you don't have that coverage, you can either sue for the difference, or pay it out of your own pocket. Even though my car is paid for, I have comprehensive coverage because I don't want to be stuck in that sort of situation! It doesn't cost all that much, either.
2006-10-16 13:21:15 · answer #1 · answered by Bad Kitty! 7 · 0⤊ 0⤋
Well, here's what will happen-
1. His insurance will offer you 5k. They'll send you a property damage release letter...before you get any $ you and your insurance will need to sign it stating you won't be coming after him/his household/his insurance for any more than 5k.
2. If you have full coverage, you can use your collision to pay the difference. You will lose your deductible since the balance has already been agreed to be a wash. Being out your deductible is probably a lot less than the difference in repairs...that's a personal choice.
-----Uninsured Motorist Property Damage will not work in this scenario. He's insured, just not sufficiently enough to cover your loss. Underinsured Motorist is usually only for injury-double check your policy but in many states you can't even buy UIMPD...don't count on either of these to come into play.
----------------
If you don't carry collision, your alternative would be to not sign the pd release, and take the guy to small claims court for the difference. This will, again, cost you money and time...so you have to decide if it's worth it.
----------------------------------------
I agree with Chris---5k is a ridiculously low amount of state minimum PD. I NEVER want to hear a policyholder gripe about how they are required to carry insurance in California...guess who's up a creek when they crash? Everyone.
2006-10-16 22:04:38 · answer #2 · answered by Pieandchips 3 · 0⤊ 0⤋
Yes, file a claim under your collision coverage so you can be made whole. If you accepted the 5k his carrier insures him for then you'd have to sign a release and it would not fully satisfy your claim, so you're better off using your own insurance. Please, everyone who thinks this is horrible that a state only requires $5,000 minimum for property damage liability coverage, appeal to your state's representative to try to get it raised. $5,000 is nothing these days if you hit any kind of car, imagine if you hit more than one or a brand new one! I'm not sure what state this happened in, but Pennsylvania only requires 5k, and there are a few more states out there with a low minimum limits. Some states allow you to not purchase that coverage at all!
2006-10-16 20:43:58 · answer #3 · answered by Chris 5 · 1⤊ 0⤋
Some policies Have what is called under insured coverage for just this reason. If your policy has it. It should cover the difference between what his insurance company will pay, and the actual damages. Then your insurance company will go after him personally to recover their money. If your insurance policy has this and you use it. It does not raise your premiums, or go against you. I can't believe that his liability is not even. I thought most states required at least $10,000.
2006-10-16 20:25:10 · answer #4 · answered by Kali_girl825 6 · 0⤊ 0⤋
Also, there is this wonderful thing called subrogation you should know about. If you file this under your collision insurance, you will owe your deductible, however, your carrier will sub against the claimant carrier. I'm a liability adjuster for "on your side", and we will reimburse our policy holders deductible out of the first money we collect from the at fault party. And don't worry if he's not carrying enough to meet what your company will sub, they will actually go after him through a collection company to satisfy the debt.
2006-10-16 20:59:28 · answer #5 · answered by shuggiegurl 2 · 0⤊ 0⤋
Take him to small claims court to get the rest of it. It was his decision to only carry $5000 insurance. You shouldn't have to suffer because of it.
You can claim it on your insurance, but there you stand the risk that they might consider that next time you're up for renewal.
2006-10-16 20:26:45 · answer #6 · answered by hawkthree 6 · 0⤊ 0⤋
When he chose to have a low coverage, he basically said "I will pay out of my pocket it it doesn't cover this".
Hopefully you have uninsured / under insured coverage on your policy. Have your company go after his for the difference, and get your car fixed.
2006-10-16 20:32:49 · answer #7 · answered by oklatom 7 · 0⤊ 0⤋
Talk to your insurance agent. Your insurance company will go after his insurance. Let the two companies fight it out.
2006-10-16 20:20:57 · answer #8 · answered by sheeny 6 · 0⤊ 1⤋