Why would I hand over my title before I receive my settlement funds?

Apr 19, 2019

  1. JULIE667
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    JULIE667 New Member

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    We were in a not at fault accident with injuries. We had to rely on our own collision coverage because the at fault driver had low limits.
    We have been misled and lied to by our insurance agency numerous times before a settlement was agreed on. In this process I have even seen medication denied, by a pharmacy billing company, because my insurance company has not honored there financial responsibilities in the past. The billing company will now only approve a certain monetary amount for prescriptions.
    Our car was finally deemed a total loss and an amount was agreed on. Why would I now "have to" hand over my title before I receive my cleared settlement funds?
    To my knowledge, in any transaction where an item is exchanged for money, it is only after cleared funds are received by the seller that the item is released to the purchaser.
     
    JULIE667, Apr 19, 2019
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  2. adjusterjack
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    adjusterjack Guru

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    That's not how it works with insurance claims.

    You hand over the title and you get your money. Don't fight it, you won't win.

    What does that have to do with the damage to your car?
     
  3. fed up
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    I have even seen medication denied, by a pharmacy billing company, because my insurance company has not honored there financial responsibilities in the past. The billing company will now only approve a certain monetary amount for prescriptions.

    jack, I read this to be part of the claim because of the injuries sustained. Experience would say that the insurance company pays when the claim is settled, not on an "as spent" basis, unless they have PIP coverage in New York (I don't know what is required up there). Julie would have to submit receipts and bills as part of the claim and have this amount paid in the "Pain and Suffering" portion of the settlement.

    She should drive the title to the Claims office, hand over the title and they will hand her the check. It won't bounce
     
    fed up, Apr 19, 2019
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  4. adjusterjack
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    adjusterjack Guru

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    NY is a no-fault state and requires the purchase of $50,000 in PIP coverage. If Julie is making a claim under her own PIP, I'm not sure what the issue is. She ought to be able to submit her bills and get reimbursed. We'll see if she comes back to clarify.
     
  5. JULIE667
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    JULIE667 New Member

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    JULIE667, Apr 19, 2019
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  6. JULIE667
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    JULIE667 New Member

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    Just showing an example of why it would not be a risk i would be willing to take. The fact that you are a big businesses does not mean you are trust worthy. Business checks can bounce or be cancelled and I may not know for two weeks. I worked in a bank for 15 years I have seen it. I might trust a Cashier's Check that only takes 1 day to clear but not a regular business check. There are extended holds that are placed on checks over $10,000 .00 and I should not have to wait 2 weeks with no money and no vehicle. Not to mention at that point they already own the vehicle. I have no vehicle or title to prove ownership.
     
    JULIE667, Apr 19, 2019
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  7. fed up
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    There are state laws which cover ALL insurance companies and bouncing a check is NOT something that they would want to face the Insurance Commission about. Don't be that fool. Take your title to the Claims office, get your check and cash it. Fight with YOUR bank about how soon they release YOUR money. We all know how trustworthy banks are (Wells Fargo)
     
    fed up, Apr 19, 2019
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  8. JULIE667
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    JULIE667 New Member

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    I am in NY. There is $50,000 in PIP coverage.
    In my case I have not had to pay out of pocket first.
    All the doctors and the Pharmacy have been submitting the bills for direct payment.
    But, again, I was just using this as an example of why I would not trust this insurance company's business check.
    Especially after another big business has shown me they don't trust them to pay more than $500.00. (which is the monetary limit they placed on this Auto Insurance company)
     
    JULIE667, Apr 19, 2019
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  9. BADTROUT
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    Julie,
    I understand that it can be disconcerting to have to inherently trust especially since nothing, even in big business is error free. This is one area though that in your shoes I would feel fairly confident. Not only are the carriers contractually bound, but they are held to a standard of ethics from every agency that represents them, and are ultimately held accountable to the insurance regulatory agency in your state.

    The division of insurance will most certainly be able to intervene if anything nefarious were to take place.

    I am not trying to say never, in this business you never say never.... but I am saying it's a system, that if you play along with the program, and the process at it is, you will be treated fairly and honestly. Most would agree there should be a better way of doing some things, maybe ways of making the process less cumbersome.

    My best advice is to hand over the title, the same as other in your situation must do, and let the carrier succeed and fail you based on their merit and performance rather than speculation as to what may, or may not happen.

    As for no vehicle... That is something that either your policy (if you have coverage for it), or more appropriately the opposing carrier should be taking care of for you. Speak to your claims adjuster for sure about that because I agree that you shouldn't be without a mean of transportation if there is coverage there.

    Hope this helps.
     
    BADTROUT, Apr 19, 2019
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  10. JULIE667
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    JULIE667 New Member

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    Thank you all for your input. But I did win. I just had the money direct deposited into my bank account. I will now give the signed title. The decision to allow this was made by the Auto Damage Adjuster Manager. Against company policy, at his own risk. He has been involved in this case since it began, 6 months ago. So, he is aware of the multiple ways we have been treated less than fair. He understands our reasons for not trusting this process. Before this I had even offered to go with him to the bank they use and cash the check with him there and hand him the title. The bank insisted they would not cash an insurance check. It HAD to be deposited in to an account. Direct deposit was the only option left.
     
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