Insurance wont pay

by mike0_8 » Tue May 04, 2010 06:14 am

My question involves an injury that occurred in the state of: Guam

Going into some detail so that you what’s going on.

What happened was my sister got into an accident with a dump truck, and it was clearly the other drivers fault. He didn’t have his insurance or registration on him at the time, so the owner company (dump truck company) had to bring it to him.
So a few days later, after getting a loaner from a car rental company that the towing/roadside service company suggested (they told us that we wouldn't have to pay a penny for the loaner), my sister went to file a claim from the dump trucks insurance company. They told her that the dump truck company was not insured at the time of the accident, due to late/nonpayment (the insurance card was showing that it has not expired). But, they are now insured with them again. So, the insurance company said that are not liable for the damages. Oh and they also were asking my sister to explain how the accident happened. My sister told them that its in the police report that she showed them.
So what should we do? Should we settle with our insurance company (subrogation) or hire a lawyer? I would like to know if the other party’s insurance policy requires notices to be sent out before terminating the policy. Is that a law?
Our insurance company told us that if we settle there’s a chance that our discounted rate will be gone and that they are not paying for the loaner. Btw, the car was considered totaled.

Need advice:(. Thanks.

Total Comments: 4

Posted: Tue May 04, 2010 11:47 am Post Subject:

Mike, whether or not the other carrier is required to notify this guy that his policy is about to lapse, doesn't matter at all...he was uninsured when this loss occured..period...therefore they cannot cover this claim, period...

I would allow my carrier to pay then they will subro, this will take less time. If there are additional losses not covered by your coverage, tell your carrier you don't want them to release the at fault party until ALL of your losses are covered, (rental maybe? what about injury? did sis have UMBI)?

For you to sue, and then collect is going to take a long long time. Your carrier can get you paid on the vehicle quicly, minus your collision deductible, which they should include in their subro demand.

Posted: Wed May 05, 2010 06:37 am Post Subject:

True. A law suit will take a while... What exactly did you mean when you said to tell them not to release the party at fault? Im under the impression that once we let them subro we have no say anymore, because we got paid.

Im not exactly sure how this works. For example, if we settle and they give the blue book value of the car and medical bills. Am I able to ask them to include the rental fee and other damages or do they give those after they subro?

My sister was not injured, but she to go to the doc for a checkup (minor neck pain).

Posted: Wed May 05, 2010 07:52 pm Post Subject:

Im not familiar with the insurance laws of Guam, but if its similar to Georgia, which I would think it would be:

i agree w/ lori.

she mentioned the release b/c this is so that you can get all your compensation owed, if your insurance company settles and releases them, you could miss out if there is any left owing you that they didnt recover.

However...your insurance company should be able to settle ALL your losses with you if you have unisured motorist coverage (umbi & umpd) (minus your deductible if you have one). If you have this coverage, they should settle with you first and then go after the dump truck company to subrogate what they can from them. when or if they recover, you would get your deductible back in a proportionate share of the recovery. ie, if the collect 10%, you may only recover 10% of your deductible. But otherwise, everything else should be covered for you.

the value of her car & rental / loss of use expenses for a few days would be covered under your UMPD. Keep in mind they may not give you much loss of use if the car is considered a total loss.

the medical check up would be covered under your UMBI. keep documentation, reciepts, etc.

Posted: Thu May 13, 2010 03:56 am Post Subject:

Thanks. We decided to settle.

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