Is there a time limit of when to file a claim after an accident

[troubledmom]

My son (under 20 years old) smashed his car to the curb and the car was badly damaged. I thought it maybe just need bodyshop to fix it and we didn't want insurance premium to go up a lot, so we decided to self pay for fixing the car. However the repair turned out to be much more than I thought.

It has actually been more than half a year since the shop was waiting on some parts and it took a long time. My question is can I still file a claim to our insurance since it has been long and the car is already being half repaired at the shop though not all done yet? (We do have pictures of initial damage and video the car self recorded.)

My other question is should I go through insurance if I can still file the claim? I have no idea how much the premium going to increase. I would think for sure if will be much less than the car repair as fixing the car turns out to be very expensive. I have another teenage son that I need to add to insurance within a year.

Thanks in advance.

 

[fed up]

Figure a 30% increase at least in premium. Since the vehicle has been repaired partially it may be difficult to file the claim but it is not unheard of.

 

[adjusterjack]

I have no idea how much the premium going to increase.

That's not the only issue.

You are in breach of contract with your insurance company. Your policy requires you to notify your insurance company promptly when an accident occurs. Half a year is "concealment" not "promptly." Concealment is also addressed by your insurance contract.

You may be at risk for cancellation or non-renewal depending on how strict your insurance company would interpret the circumstances and the statute:

Texas Insurance Code Chapter 551 - Practices Relating to Declination, Cancellation, and Nonrenewal of Insurance Policies (public.law)

 

[troubledmom]

That's not the only issue.

You are in breach of contract with your insurance company. Your policy requires you to notify your insurance company promptly when an accident occurs. Half a year is "concealment" not "promptly." Concealment is also addressed by your insurance contract.

You may be at risk for cancellation or non-renewal depending on how strict your insurance company would interpret the circumstances and the statute:

Texas Insurance Code Chapter 551 - Practices Relating to Declination, Cancellation, and Nonrenewal of Insurance Policies (public.law)

Thanks for the reply and that is good to know. I didn't realize that. Technically it is an accident with no other person or car involved. I know sometimes people cover damage out of pocket instead of file claim to insurance. Even in that case, they also need to report the accident?

 

[Al3x Lee]

Technically it is an accident with no other person or car involved. I know sometimes people cover damage out of pocket instead of file claim to insurance. Even in that case, they also need to report the accident?

Hi Troubledmom. What insurance company is your insurance policy through? Do you have an agent who can guide you?

Policies can vary by state, but here's how the language in my policy reads for this scenario, and I imagine it would be very similar to how your policy reads.

We have no duty to provide coverage under this policy unless there has been full compliance with the following duties:

A. We must be notified promptly of how, when and where the accident or loss happened.

E. A person seeking Coverage for Damage to Your Auto must also:
1. Take reasonable steps after loss to protect your covered auto or any non-owned auto and its equipment from further loss. We will pay reasonable expenses incurred to do this.
2. Promptly notify the police if your covered auto or any non-owned auto is stolen.
3. Permit us to inspect and appraise the damaged property before its repair or disposal

This leads us to ask, what does 'promptly' mean? According to cases settled in the Texas courts, they have found that six week, three month and six month delays are unreasonable. This means, you're unlikely to receive compensation if you've waited over half a year to file the claim.

Additionally, my policy says I need to permit them to inspect and appraise the damaged property, meaning the vehicle, before its repair or disposal. Since your vehicle is already in the process of being repaired prior to meeting this obligation, there is another point they may find to deny your claim.

That being said, you can file a claim whenever you want, there's just no guarantee that your claim is going to be paid out unless you're lucky and find a benevolent claims adjuster.

People do pay damage out of pocket all the time, but they usually don't wait over half a year to decide if they're going to file the claim or not. Just like how you have the expectation that the insurance company wouldn't wait 6 months to get back to you on a claim.

 

[troubledmom]

Hi Troubledmom. What insurance company is your insurance policy through? Do you have an agent who can guide you?

...

That being said, you can file a claim whenever you want, there's just no guarantee that your claim is going to be paid out unless you're lucky and find a benevolent claims adjuster.

People do pay damage out of pocket all the time, but they usually don't wait over half a year to decide if they're going to file the claim or not. Just like how you have the expectation that the insurance company wouldn't wait 6 months to get back to you on a claim.

Thanks for your detailed reply. The wait was because parts needed were taking super long to arrive. The shop gave an estimate at the beginning and we already paid for the parts. But upon repairing, it turns out that more needs to be repaired and now I am feeling this went too far.

I am not discussing with an agent from my insurance company because I am afraid that they found out my son wreck his new car shortly after buying it and kick us out. At the same time decline the claim. So we lose both if I try to ask the agent.

Up to this point I realize that I lack expertise on car damage or insurance policy. The initial decision of try to cover out of pocket was wrong. And probably there is no way to go back.

 

[Al3x Lee]

Thanks for your detailed reply.

I am not discussing with an agent from my insurance company because I am afraid that they found out my son wreck his new car shortly after buying it and kick us out. At the same time decline the claim. So we lose both if I try to ask the agent.

Up to this point I realize that I lack expertise on car damage or insurance policy. The initial decision of try to cover out of pocket was wrong.

No problem. It sounds like your policy is with a direct carrier then. I work at an independent agency, which means I'm an agent for my customers, not the insurance company. When someone calls me, I can help them through a process like this. That's why I asked if you had an agent you could talk to.

The way I see it, you have two options

1. Pay out of pocket to avoid having the claim on your record
2. File the claim and hope for the best. Worst case scenario, you get a claim on your record that isn't paid and goes away after 3 years (Some carriers go back 5) If they cancel or non-renew you for it, you'll have to plan on finding a replacement policy.

There is always a possibility they'll pay the claim if you explain your situation, but it will be a gamble and with two teenagers driving, potentially a costly one if it's filed and not paid, as your rates will go up

 

[Allen Trent]

No problem. It sounds like your policy is with a direct carrier then. I work at an independent agency, which means I'm an agent for my customers, not the insurance company

is that true in Oregon if you are not a broker? I think the law usually says you are an agent for the carriers you are appointed with, not an agent for the client. I could be wrong & while I agree this is how many agents communicate to the client, I dont believe it is exactly true. I believe independent agents represent many carriers, but they are representing the carrier, not the customer. the signed contracts & receipt of commission likely spell that out also unless client is paying you compensation as a broker

 

[Al3x Lee]

is that true in Oregon if you are not a broker? I think the law usually says you are an agent for the carriers you are appointed with, not an agent for the client. I could be wrong & while I agree this is how many agents communicate to the client, I dont believe it is exactly true. I believe independent agents represent many carriers, but they are representing the carrier, not the customer. the signed contracts & receipt of commission likely spell that out also unless client is paying you compensation as a broker

You're technically correct on paper, but that's not how it shakes out in the real world as you eluded to many agents communicate to the client that way and the carriers know it.

Obviously there has to be a certain level of trust from all parties. The good carriers have a nose for sniffing out shady agents, but also taking care of the quality agents and their clients.

At the end of the day, I'm using my carrier appointments to do what's right for the customer and mutually beneficial for myself and the carrier.

 

[Allen Trent]

You're technically correct on paper, but that's not how it shakes out in the real world as you eluded to many agents communicate to the client that way and the carriers know it.

That is kind of my point. The courts & the state insurance dept will treat you as an agent for the carrier, not the consumer. Saying the opposite & advertising it merely exposes you to greater legal liability & E&O exposure

Has to be a way to clearly stare you represent many carriers to offer a full range of options, coverages, prices without faking giving the impression you represent the client. In real world, most independent PC agents place the majority of their premium with a limited number of carriers to maximize compensation, contingency bonuss & ease of doing business with fewer carriers. Nothing wrong with that, but important to use proper terminology for compliance & legal reasons