Can I sue (or cause bodily harm) to 3rd party insurance co.?

by jbyk117 » Sat Sep 19, 2009 09:15 am

It would be self-defense, I promise.

My vehicle was damaged in an accident in downtown Atlanta almost 5 months ago. Since then I have been unable to come to settlement with the at fault party's insurance company for two reasons: One, I feel they have undervalued my vehicle and secondly (and more importantly), have refused to pay anything toward my 5 weeks of rental car expenses. I can drone on and on with details about this and all of my frustration in dealing with the insurance co. but I will try to be brief and will respond promptly to any follow up questions if I am fortunate enough to get your assistance.

Here goes: Driver crossed two lanes of traffic to my right to make a right turn in front of me. My vehicle sustained substantial damage to its front and driver side. The other driver was issued a citation for making an illegal right turn and causing the accident. I contacted the driver’s insurance co. promptly. I opened a claim and notified my insurance company as a courtesy as well. I was told that an adjuster would be in contact with me.

After not hearing from anyone for a couple of days, I called again. At that time I was informed that the driver was “unlisted” on the at fault vehicle’s policy and therefore the insurance company would not be liable. At that point I reluctantly went back to my ins. co. and opened a Uninsured Motorist claim. My insurance co. moved swiftly to have an adjuster out to look at my vehicle, assess the damage and make the total loss/repair decision. The vehicle was valued at around $5500 and the damage at around $3500.

They said it was very close to a total loss but according to their formula it was not. I was that a “denial” letter was needed from the other driver’s insurance co. in order for mine to authorize the body shop to proceed with the repair of my vehicle. After my insurance company made numerous unsuccessful attempts to secure the letter I made the request and waited, and waited.....

Three weeks passed with me and my insurance co. making almost daily calls to the adjuster requesting the letter. In the fourth week, I received a call from my ins. co. stating that the 3rd party insurance co. had contacted them. They determined that the at-fault driver was covered under their policy and that someone would be in touch with me regarding my claim. I didn’t wait to hear from someone. I called and spoke with the adjuster who advised that someone would be going to going out to look at my vehicle and that, once again, someone would be in contact with me.

Another week or so passed, nothing. Then I get a vm message from the body shop where my vehicle had been parked (racking up storage fees) since the accident. Nick at Newnan Hometown Body Shop (these guys are great btw) advises me that the insurance company deemed the vehicle totaled and had towed it away. Fortunately, the guys retrieved all of my personal items from the car before it was taken. I had no advance notice and had not cleared my vehicle of my belongings because I anticipated it being returned to me someday. Anyway, car’s gone. I make contact with the insurance company and was advised that they considered the vehicle a total loss based on a valuation of $3200.

Believe it or not, I’ll bring this to a quick close (I know my word is worthless with you guys at this point). But, I disputed the valuation and provided comps to the insurance company showing the price of like model year vehicles for sale in my area ranging from $5k - $7k Through much debate, the adjuster “went to his supervisor” and got approval to offer me a property damage settlement of $4500. I responded that I “may” be willing to accept that for the car, and inquired about the rental reimbursement. I was told that I was not eligible to be compensated for any of the 5 weeks of rental car expense. Just not an option per their company policy to pay rental car expenses to a 3rd party claimant.

Needless to say (but you're getting to know me by now) I was amazed and very frustrated that this could be their position. I told the adjuster that I found that unacceptable and asked what he suggested to resolve it from here. He stated that he would “go back to his supervisor to see what else they may be able to do” and would give me a call back. That was this Tuesday, this is Saturday. Do you feel my pain here?

So that’s it an a (huge) nutshell. I feel that I could live with the $4700 for the car if I have to. After all it was a “97 with 200k+ mi. But I have some real heartburn over their refusal to make me whole on the rental. I feel very much like the insurance co. doesn't have my best interest at hand, duh, right?

Two questions for you kind experts at AMPM: One, can I take the 3rd party insurance company to court? and if I do, do I have a chance at recovering my full rental reimbursement and possibly a higher value for my vehicle? Thanks so much for taking the time to hear me out to the end.

Total Comments: 2

Posted: Sat Sep 19, 2009 10:23 am Post Subject:

First of all, I am sorry you have had such a horrible experiance.

Secondly, what you are dealing with is huge helping of incompetence and neglect on behalf of the either the adjuster, company or both. As an adjuster myself, I question the lack of urgency on the company's part. I can tell you that if I had a client who was in a similar situation, regardless if there was a doubt in their mind that they were at fault, I would have had to meet with you, evaluate the incident and access the damage to your vehicle within a 48 hour period. Did they ever take a statement from you and when?

Once the insurer accepted liability, that included the rental vehicle. Once they stated that the "at-fault driver was covered", that should have paid for the rental. 3rd party cases can get "wordy" but in your case however, it sounds like they owe it.

I am not sure what your state says about suing an insurance company. Some states will not allow you to sue the company directly. You may have to take the 3rd party to court. I hope you have all of this story documented. Who, what, where, why and how.

As far as your vehicle, they are only obligate to pay the current ACV (actual cash value) based on the current market evaluations. The idea is to put you back in the same situation you were in before the accident. The fact that you got another $200 for a '97 model with 200k + miles, sounds like a winner to me.

I feel very much like the insurance co. doesn't have my best interest at hand, duh, right?



Of course. The only interest that insurance companies look out for, is their own.

What you need to do is seek legal counsel. Once they get wind of this, they will more than likely settle with you on the rental.

Posted: Sat Sep 19, 2009 12:34 pm Post Subject:

Nick at Newnan Hometown Body Shop (these guys are great btw) advises me that the insurance company deemed the vehicle totaled and had towed it away.

The shop is in custody of your vehicle and are responsible for it. As such, they should not release it to a 3rd party without your permission. Did you give the shop your permission to release your vehicle?

Just not an option per their company policy to pay rental car expenses to a 3rd party claimant.

They won't pay any loss of use? Either this is 100% incorrect or its a misunderstanding. As every insurance company is liable for LOU to a 3rd party, I think its a misunderstanding.

As mentioned, less then a handful of states allow you to sue an insurance company directly (I think only 2 and GA is not one of them). But this does not matter, filing suit against the owner and driver of the other vehicle is the same thing. Basically they cause your loss and they are not paying. Their insurance company is responsible for defending them.

My recommendation is to find out (from a supervisor) why they feel they don't owe _any_ loss of use (call it that, not rental). At the same time file a complaint with the Dept of Ins for your state. Go ahead and do this now. Let the DOI know it's taken 5 weeks for them to make an offer on your vehicle and that they now won't pay for 5 weeks of LOU.

What you need to do is seek legal counsel

You would have to pay out of your pocket for legal counsel as there is no money for an attorney to make from a 3rd party on a property claim.

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