Claim Question

[FullAuto]

Don't run off and have the car repaired immediately. If you do, you are relying solely on your carrier to subrogate to recover anything. If the other company writes a higher estimate, the half they offer you initially may be more than 50% of what this other shop already agreed to. Insurance companies write to repair cars to different standards. Sorry, but that's a fact. If you are insured by Lizard insurance, one of our customers hits you, and we take 50% responsibility, there's a good chance my 50% will pay for 100% of the level of quality repair you'll get from your own company. The are several companies out there where I simply cannot compete with their estimates.

There are also differences in the estimating software that will create different amounts. Meaning, instead of my comment about 5 adjusters writing 5 different estimates, if I used two different brands of software, you'd get two different estimates from the same person seeing the same damage and writing the "same" repairs.

At the very least, allow the other carrier to inspect the car prior to repairs and get their estimate.

 

[djs]

Wow, things must work differently in Oklahoma. I understand your point about different estimates, but with minor (very minor based on the dollars we are talking) there won't be much difference.

It also doesn't matter. The goal is to get it fixed. I'm not sure why you would worry about half, unless you are thinking the other carrier will pay half the bill and only half. The goal would be to get them to pay 100%. In California, I've never seen a carrier pay 50% of a repair, they usually pay the whole thing (to limits) or none. Of course, most fault determinations here are either 0%, 100% or 50/50. On a 50/50 you fix your own car.

Carriers love to default to 50/50 if they can, helps keep loss ratios a bit lower (somewhat), but it is the default position, not usually realistic.

Dan

 

[FullAuto]

Here. 50/50 means each person pays half of each car. So if one car has $1k in damage and the other has $3k, the latter doesn't get stuck with the higher bill. If the person with $3k in damage has liability coverage only, he'd be out all the money. This way the other person/carrier who was 50% at fault pays $1500 of it. So when you guys go 50/50, you just stick the other guy with his? So he has liability only, you are 50% at fault and don't give him anything? LOL That's awesome.

California also has the biggest difference in rates in the country. San Francisco is the most expensive competitive market place in the country (highest priced per hour). But there are other market areas almost half the cost of San Fran. My entire state doesn't differ but by about $4/hour by marketplace.

 

[Hefe]

Do you know the company that is saying it's 50/50? If so, post it.

Infinity..

 

[andysmith]

Is there an issue of coinsurance, if you go for 50/50 terms then 50 percent will be paid by you.

 

[3rdtimeisacharm]

Is there an issue of coinsurance, if you go for 50/50 terms then 50 percent will be paid by you.

The accident will also result in loss of California Good Driving Discount which is an instant 20% increase for 3 years.

 

[xrac]

Is there an issue of coinsurance, if you go for 50/50 terms then 50 percent will be paid by you.

I have never heard of coinsurance for auto owner insurance or for P&C in that regard. Coinsurance is usually connected to health coverage. The 50/50 fault terms would simple indicate that each driver is responsible for their own repairs none of the nonsense posted by Andysmith.

 

[itstheinsurance.com]

Being a producer, I don't see too much of what happens on my clients' claims. The only time my clients need me is when an adjuster isn't calling them back and that only takes a quick call to a supervisor to resolve. I've got a situation now that I could use some help on.

My insured was in a parking lot, not moving, waiting for a parking space. Another vehicle (not the one she was waiting for) backed out and hit her.

My insured turned in her claim to her carrier and the other party turned in their claim.

My insured got an estimate at $1050. Her adjuster spoke with the body shop and revised the estimate to $450. Her deductible is $500. Since the adjuster's estimate is under $500, the adjuster has essentially stopped working on the claim because they aren't going to pay anything out. I have advised my insured to go to the body shop with the $450 estimate and ask for that repair. She would like the other party's company to pay the body shop directly.

The problem is that the other party's company determined liability to be 50/50 and isn't paying. My carrier determined liability to be 100% the other party's fault.

One of my biggest issues is that my insured's adjuster has abandoned her, basically telling her to deal only with the other party's adjuster. When we talk about claims service, doesn't that include dealing with the other adjuster and making sure liability is determined correctly?

I am also confused as to how the other party's adjuster determined fault at 50/50. I'm assuming my insured can dispute this, is this correct?

Have her bring her vehicle to shop to do the repairs. The repairs will likely be over her deductible since there is negotiating involved with the body shop. Once that is complete her insurance company will subrogate the other insurance company for the damages paid and her deductible. If it makes financial sense they will send the case into arbitration.

If your client feels she the claim was not handled accordingly she can submit a complaint to the company. If need be can submit a complaint to the state's department of insurance for review.

PS: I was an adjuster for 10 years