Can Other Party's Insurance Really Come After Me Over a Year Later?

Sep 27, 2016

  1. Tee412
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    Tee412 New Member

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    Before I spend money on a lawyer I wanted to try to get advice on this forum. I was in an accident over a year ago and it was deemed my fault. I have a full coverage policy and my insurance paid for the damages to the other car which happened to be a rental car. I was just contacted by an agency representing the car rental company (over a year after the accident) and they say that my insurance company did not pay for all their expenses. They expect me to pay these fees now. Is this legitimate? Isn't this why I pay for a full coverage policy?

    Thanks for any helpful feedback!
     
    Tee412, Sep 27, 2016
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  2. hesse
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    hesse Guru

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    notify your insurance company that had the claim
     
    hesse, Sep 27, 2016
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  3. BlockO
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    BlockO Guru

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    this is exactly why I hate the term "full coverage". it is so misleading.

    "full coverage" refers to coverage on your own vehicle, not coverage on the other guy's car.

    the liability coverage part of your policy is what paid the rental company. If you chose low limits of liability coverage, the property damage limit you carried on liability might have fallen short of paying the damages in full.

    what state is this in? each state has it's own minimum for bodily injury and property damage.... the minimum limit for property damage is usually between 10-25K in most states, but can be as low as 5K in others.

    if the amount of property damage went over the limit you were carrying, then yes, you could be on the hook for the rest.

    listen to hesse and call your agent/company. ask whether or not the property damage payment that was paid exhausted the limits you carried.
     
    Last edited: Sep 27, 2016
    BlockO, Sep 27, 2016
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  4. AZDave
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    AZDave Guru

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    Many areas that your personal auto policy may not pay what the rental car's contract demands:

    Virtual University - Top 10 Reasons to Purchase the Rental Car Damage Waiver


    I'm betting it is on the 'loss of use/loss of rents".

    Dave
     
    AZDave, Sep 28, 2016
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  5. Tee412
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    Tee412 New Member

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    Thanks for your reply. I did call them, they said the other party wanted them to pay admin fees, which they don't pay as it is not "customary". The adjustor also said that they review the damages and decide what is "reasonable". If the other party asks for an amount they feel is too high for the specific damages than they only pay what is reasonable.

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    My liability coverage is $100,000. The damages to the other car totaled $4000. This is in California. This seems to be an issue between my insurance and the other party's insurance. My question is whether, legally, they (the other insurance) can try to collect from me personally.

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    Also, I was not the one in a rental car. The gentleman who drove into the side of my car was in a rental. Thanks.
     
    Tee412, Sep 28, 2016
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  6. TeePee
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    TeePee Super Genius

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    First time in 20 years in the industry, and you are the 3rd person I have heard this happen to in the last week. Admin fees for my 2 customers were about $100 but Wait for lose of use and diminished value fees to hit. They are not paid by your insurance company. You will need to fight this with the rental company.
     
    TeePee, Sep 28, 2016
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  7. fed up
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    Was billed for "Loss of Use" over a cracked windshield by Budget.......for 3 months of loss of use. Explained how Safelite can and does repair within days and told them to have a nice day. Now I am on Budget "no rent" list. Oh well
     
    fed up, Oct 23, 2018
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  8. WolfpackAgent
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    Now if YOU had the rental, I'd say that's what the Loss Damage Waiver is for. But since it is the other party and it is your liability paying, that's different. Yes, they can pursue you, but then you turn the letter over to your insurance company and they should handle it, in or out of court. I would think they'd have to pay in the same way they would pay for a rental if you hit someone else - isn't that loss of use?

    Bottom line - call your agent and/or claim handler.
     
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