Insurance question?

Question

Heres the deal, we recently were rear ended, some kid didn't look both ways before crossing the street, so my girlfreind braked for him, and this guy hits our rear end. We have full coverage on our car, with a $500 deductible. Anyway we take it to the body shop and have them fix it, they call us to pick it up, and are informed we owe the body shop $500 before they will release the vehicle to us. Is this right? We weren't told anything about this prior to the work being done. And it's always been my understanding that since the accident wasn't our fault nothing should come out of our pocket. any help would be greatly appreciated.

Answer 1

Your insurance deductible has nothing to do with fault.

When you took out your automobile insurance policy - you agreed to pay for the first 500 of damage if your insurance company would pay for everything after that. It does not matter who's fault the accident is. The deductible also applies per occurrence (not 1x per year like a health insurance deductible).

Most likely here's what will happen: your insurance company settles with you under your collision (you pay the 500 ded to the shop). Then they go after the at fault driver's insurance to pay them back (a process called subrogation.). They will ask for the money they paid and your 500 ded. Once they get paid by the other persons insurance, they will forward the deductible they collected on your behalf to you.

"no fault" refers to a medical coverage - it has nothing to do with a property claim. It's a common mistake for people to think that means you can cause accidents and it's no ones fault b/c it's a "no fault" state. (the real name for "no fault" coverage is Personal Injury Protection or PIP).

The body shop will not release the car until they are paid for the work they did. Too many body shop managers have been burned by letting a car go when money is owed to them - so they don't do it any more. In order to get your car, you will have to pay your 500 deductible.

Or....you can ask your adjuster to contact the at fault carrier to see if the at fault carrier will "advance" your deducible. What this means - is the at fault carrier sends the 500 ded to the shop or to you. Your insurance company sends them a letter agreeing that if they pay the 500 ded now - your company will not ask for it when they subrogate (meaning they will only collect what they paid b/c the other company has already paid you your deductible). However, this only works if the other carrier has completed their investigation and accepted liability and is willing to do it.

Setting this up also creates a whole bunch of work for your adjuster that is normally not done. There is a reason we don't do this on every claim. Trust me, your adjuster has more work than hours in the day. If they can set up to have the other carrier advance your deductible - it would be a nice thing for you to drop a quick note in the mail to the adjuster's boss letting them know that you appreciate your adjuster going above and beyond to help you out.

Answer 2

If you filed the claim through your insurance company, you have to pay the deductible. Your insurance paid the amount of the repair less the deductible. the shop needs to be paid in full before they will release the vehicle, they do not care if you pay, the insurance company pays, or a Jolly old man in a red suit (Santa) pays. They want to be paid for the work they did. You should have filed a claim against the driver that hit you (unless you are in a no fault which really is "no personal responsibility for your actions" state.

Pay the $500 or the shop will add on storage charges! You need to file a claim with the other persons insurance. Contact your insurance agent for more details!

Answer 3

You went through your insurance company to pay for the damages, you have a $500 collision deductible so you pay it. What happens next is your insurance company will subrogate, or go after, the at fault party's insurance. They will ask for the amount they paid AND your $500 deductible. When they receive their money, they will return your $500 deductible to you.
You could have gone to the other party's insurance but it probably would have taken much longer. The other company would have to investigate, they have to talk to their insured and they have to get any police reports or witness statements available. They cannot determine liability without these things, even though it was 100% the other party's fault, they owe THEIR insured a full investigation of any claim of liability against them. Your company would do the same for you if the situation were reversed. This sometimes happens quickly, sometimes it takes a few weeks, it depends (if the other party were on vacation for a couple of weeks, it would hold it up).
A no fault state has no bearing on property damage, it only concerns medical bills, so would not apply to this question.

Answer 4

Depends did you file a claim with your own insurance, or the other guys.. You are required to pay your ded before the shop will release your veh if your going thru your own insurance. If other guys, then they should have paid the shop before the repairs were done, same goes for your own insurance, and the guy that hit you would be at fault..

Answer 5

Yes, the auto shop has the right to do that. It really doesn't matter to them who will be paying for it: you, the other guy, or the insurance company. They are entitled to their money. Who is going to pay for it is your problem, not theirs. You should have made arrangements with the insurance company before sending it in. But anyway, go ahead and pay it and make sure you get a receipt, so you can file a claim.

Answer 6

If you live in a state that does not have 'no fault' guidelines, then it is not right. The Insurance company of the person that hit you should pay the full amount of your claim. Your Deductible is only applicable if you are at fault in the accident.
If they did not pay the full amount of the claim, you need to contact the insurance company of the person who hit you to send the body shop a check or send you a check for reimbursement (if you already paid the body shop).

If the person that hit you did not have insurance, you will need to request them to pay you the money owed to the body shop. If they refuse to pay, then you will need to sue them.

If you live in a state that has 'no fault' guidelines, you should contact your own insurance company for payment.
Good luck.

Answer 7

As a courtesy to you, and to allow you to have your car as quickly as possible, your insurance went ahead and authorized the repairs using your collision coverage. You of course have to pay whatever deductible you chose when you signed up for insurance. Now your insurance will go after the at fault company to be reimbursed for what money they are out, AND your $500 you paid. Once they collect they will send you a check for your $500.

You don't have to sue anyone, or contact the other person's company, your company will handle those details.

Answer 8

Well, the auto shop is looking for their money. You may need to get a lawyer or start calling the "other driver's" insurance company ... and as usual insurance companies are not going to take the initiative ... you'll have to.

Answer 9

Are you in a no fault state?

Did you turn in the claim under the person that hit you's policy or did you turn it in on your own. If you turned it in on your own you will owe the deductible initially and your insurance company will go after the other person to recup the claim and your deductible. In Missouri, you should only turn the claim in on your own insurance if the other person does not have insurance or the accident is your fault.

I am an insurance agent in Missouri.

peace ♥ happiness

Answer 10

Pay 500$ get your car. Hope the other driver had insurance. Hope you called the police, and got a accident report. So you can take it to an attourney to get your money re-imbursed if they had insurance and etc...