What happens when insurance companies battle?
April 13th, 2009 | by Rick |
MV asked:
I recently got my claim denied from the insurance company that covers the man who hit my vehicle. I filed a claim today with my insurance company and they determined that the man was, indeed, at fault. My claim adjuster said that the next step was for the insurance companies to battle it out. I was just wondering what happens when 2 insurance companies battle it out and what happens afterwards.
RANDELL
I recently got my claim denied from the insurance company that covers the man who hit my vehicle. I filed a claim today with my insurance company and they determined that the man was, indeed, at fault. My claim adjuster said that the next step was for the insurance companies to battle it out. I was just wondering what happens when 2 insurance companies battle it out and what happens afterwards.
RANDELL
5 Responses to “What happens when insurance companies battle?”
By BOB on Apr 15, 2009 | Reply
ELDON
No matter what two insurance companies do - we always lose.
Your insurance company MUST pay your claim, and take care of their differences with the other outfit afterwards. In this case, you will lose your deductible because when the other party pays, they pay in full. The question is: is the other guy’s company in agreement that it was his fault? If so, file a complaint with your state insurance commissioner. They are crooks, and take bribes - directly or indirectly - from the insurance companies but most certainly don’t want any noise. Plus, if nobody was injured, this is peanuts, and they’d rather pay the claim.
By AL on Apr 16, 2009 | Reply
JESS
Battle it out..well, it depends on the adjusters. Some are ‘in your face’ and downright abusive, others are smart, reasonable, and will actually discuss the facts of loss and they work together (vs the 1st one where they’re just a-holes).
Should they not agree (and as long as your insurance pays something towards your repairs) the matter will proceed to arbitration (assuming both carriers are members) and a neutral 3rd party will review the evidence and render a decision that all parties abide by.
By JARROD on Apr 20, 2009 | Reply
BURT
It’s a simple matter of both companies believing their particular policyholder and determining fault based on their review of the facts, stories, police reports, etc. Your company will pay for damages (less your deductible) and subrogate the cost to repair your vehicle against the other company. Honestly, it’s not always sucessful and you may not get your deductible reinbursed. The fact is unless both claims adjusters actually SAW the collision it’s strictly a matter of interpretation of the facts and stories.
Of course it would be a lot more fun if companies actually DID battle each other galdiator style!
By MOSES on Apr 20, 2009 | Reply
BLAINE
Bundysmom is correct about the arbitration (think of small claims court for insurance companies). If both companies are members of inter-company the file will be arbitrated. Once the arbitration is filed it will take 3 to 4 months to get a decision.
The arbitration will be decided by claim adjusters (called arbitration panelists) from other insurance companies. The decision is binding on the insurance companies. However, if your company loses the arbitration you still have the right to sue the other driver for your deductible. If you company wins the arbitration you will get back the same percentage of your deductible that your company receives. So if you company wins 75% you will get 75% of your deductible back.
If one of the companies is not a member of arbitration the file can still be arbitrated if the member agrees to it.
If the arbitration can’t be done then the companies can sue in court which can take longer.
I would suggest that you call your company and find out if arbitration is an option for your file.
By ALPHONSE on Apr 23, 2009 | Reply
AMOS
You could be in for a long wait, or a big disappointment. When Insurance companies battle it out, it usually ends up that your company pays your claim, and then they go after the actual at fault company to reimburse them. Which doesn’t really help you at all, because it still shows that your company pays out - which counts as an At Fault Accident, against you.
Or, they could just offer to pay for half the damages, and then both companies split the difference 50/50.
Either way, your adjuster (if they’re good) will keep you informed, as much as possible.
Good Luck~!