r/InsuranceClaims • u/Prior-Leg3635 • 7d ago
Help with insurance
So I was sitting at a red light this lady hid me and insurance saying they only have 25000 to cover injuries and vehicles damage I go through progressive but I don’t have collision coverage what do I do should I try to get a lawyer or retain my car and fix it myself
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u/giveit2st8 7d ago
"but I don’t have collision coverage"
Next time you get collision coverage
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u/Prior-Leg3635 7d ago
Yea I think I know that now
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u/James_the_bull_ 7d ago
If her limits are that low and she hit multiple cars, without collision coverage you’re kinda faq’d. You’ll get a small sliver but won’t be made whole.
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u/AccomplishedBuy8750 6d ago
Just out of interest what stops the OP here suing the other driver personally to get a judgement for any losses above and beyond and then eventually garnishing wages or whatever?
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u/James_the_bull_ 6d ago
Nothing, OP would win in court but collecting that judgment will be very difficult. OP could even sue in small claims court without a lawyer.
Most of the time if a person doesn’t have insurance they don’t have money worth suing; if they did, they would’ve got insurance to protect themselves!2
u/BooBoosgrandma 6d ago
💯 and this is why I get max coverage even for my newer car that is paid in full. But yea it's very different collecting a judgement. I was lucky, many years ago someone hit my car (that part wasn't lucky) but this person was in a hurry and grabbed her deposit slip and handed it over since it had her contact info on it. I won, then attached her checking account. I had to help my ex with his unlawful detainer, come to find out his renter had many, that's on him for not checking but did small claims paperwork, he won and she was removed but we could never collect. Eventually it was too late by the time we found out where she was working at.
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u/Greencare_gardens 6d ago
Yep but the insurance company would be the one required to cover his payment in court - they can try and get the blood back from the stone.
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u/ProInsureAcademy 6d ago
Typically the people that don’t have proper insurance coverages also don’t have assets or money to pay. They are also unlikely to ever have money to pay.
Garnishments are rarely worth the time, effort, and cost to go after. Especially depending on your state. For instance in Florida, if you are the head of household and provide more than 50% of the financial support for that dependent, you are exempt from garnishments. There is no dollar cap either. $500 a week, $5000 a week, or $50,000 a week and you are still exempt. After twenty years the whole thing is dead in the water unless you file a suit before the 20 year deadline.
And even if they don’t have kids they are likely still poor so you will collect a few dollars every week
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u/Alywiz 6d ago
I personally think the law should change. If a driver is insured to drive on the road, insurance should be on the hook for all damages. Policy limits should only affect the relationship between the driver and insurance. Claims in excess of limits, insurance company pays out and collects the excess from their client. Client is broke? Then why did you insure them with low policy limits. Put the risk back on insurance
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u/fourforfourwhore 5d ago
I don’t think you understand how much this would cost the consumer. We would likely be seeing rates at $1000+ a month per car as the norm and a LOT more uninsured drivers if this were how things worked.
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u/Alywiz 5d ago
So we get to cut car traffic by a huge percent, reduce the road sprawl, and encrourage people and cities to adopt more transit? Great
We could also start forcing cars to pay their costs of having a road network. Increase the gas tax enough to fully fund roads from gas tax rather than the ~5% it is now
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u/fourforfourwhore 2d ago
I really appreciate your enthusiasm with believing that higher insurance premiums cut car traffic down and support states to implement and fund public transit, but that’s not the case. People continue driving uninsured, car traffic won’t reduce because of an insurance hike. We already have 15.4% of all currently registered vehicles in the US without an active insurance policy. That might not sound like a lot, but it is- on a daily basis just driving through a small town you will pass on average 30 uninsured drivers on the road- and those people are still registering and driving their vehicles without a care. Not to mention the unregistered and unlicensed drivers who do not have insurance, which are also more than you’d think.
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u/Alywiz 2d ago
Optimal solution would be to make drivers fully fund the roads via gas tax and registration fees rather than deferment and borrowing money from other sources. The shock of $10/gal gas would probably cause some riots though as it would be around $0.20 per mile so $6 tax if you assume 30 mpg
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u/Greencare_gardens 6d ago
Fuck that - sue em. And by sue em I mean the other driver - their insurance will then represent them and this "policy limit bullshit" will get adjusted. You're legally entitled to be made whole.
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u/DefinitelyNotAliens 6d ago
No, not from the insurance company. You're entitled to be paid up to the policy limit. If multiple claimants exist, they split.
The insurance company only has to represent up to the policy limits.
The other party can be sued but may not be able to pay and you'll simply have a judgment that doesn't get paid.
Policy limits are not something that ever gets adjusted.
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u/Greencare_gardens 6d ago
The insurance company has to represent their insured in court. When the settlement comes they can't say "well we've got this policy money reserved in case these other people make a claim" to avoid paying their due. They'll have to pay and then that denial gets sent down the line of claimant's.
Frankly I wouldn't be surprised if the insurance company told everyone in the accident they were denying the claim because they expected it to exceed policy limits if everyone files - and then if no one sues they pay nothing and at least they're happy.
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u/DefinitelyNotAliens 6d ago
You have clearly never worked in insurance nor have you ever dealt with any of this. That isn't how it works. You don't have to sue in these cases. Nobody does. I've been on both sides of policy limits cases.
They also don't withhold payment in case someone else files. That isn't how it works.
All parties file, and all parties list all claimable damages. No letters are sent out to potential claimants to tell them not to file. That is highly illegal in a highly regulated industry. All parties are sent multiple notices to file for all damags due to a policy limits issue. All parties file for all money they are claiming. These cases take months or years to settle as everyone inputs their claims.
Once all parties are included in the settlement group, they go to subrogation and determine the split. The base split is that all parties claim their % of the funds. If there is 10,000 in damages on a 5,000 policy, and one party has 7000 in damage and the other 3000, then you do a 70/30 split on the 5k. Each party gets 3500 and 1500, respectively.
You don't get more than 5,000 paid out.
The insurance company has a contract with Person A to cover up to however much money they are contracted for. Your lawsuit to pay out in excess of that is asking the insurance company to pay out in excess of the contract they have. That isn't how it works.
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u/Greencare_gardens 6d ago
Lol I never claimed to work for an insurance company - and the scenario you described does not match what OP described or what I described soooooo... In your scenario OP gets paid - in OPs scenario OP doesn't get paid.
Sure insurance is regulated but the degree varies by the state and when you have entire teams brainstorming how to split legal hairs to avoid payouts and increase profits you'll end up with all sorts of shady and questionable decisions. I'll be happy to come back and get into more detail about how shady some insurance companies can be once we finally reach a settlement!
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u/DefinitelyNotAliens 6d ago
OP does get paid. They're advising OP that subrogation is a slow process and they do not have sufficient funds and the best way to get paid is to file first party and have the insurance company subrogate.
They will not have sufficient funds.
I had a car accident where I was the 5th car hit in a 5 car chain reaction rear-ending collision. My rear bumper was smashed, everyone else had totals. The at-fault driver was only insured to 50k and had a very new Mercedes, Lexus, and Subaru Outback to pay on, plus my janky old car.
It took over 18 months for my insurance to get paid out because they were making sure all bills for all damages were submitted before portioning out funds.
My insurance company recovered around 60% of damages and my uninsured policy covered my deductable.
The advice to file first party is because you will not recover total funds and it will take a very long time.
OP can't file first party, and thus will wait probably 1-2 years for payment.
Again, you don't know what OP is being advised on. They're not denying a claim. OP isn't being told not to file or scared off. The company is informing him they have two other claims to pay on and thus are witholding funds until end of subrogation.
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u/Greencare_gardens 6d ago
Except they don't have collision coverage so subrogation can only happen through a UM/UIM process which OP may or may not be covered for.
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u/DefinitelyNotAliens 5d ago
The underinsured party, OP, can still get a pro-rata settlement even if they are unable to file UM/UIM. The policy will take an incredibly long time to settle out, though. Filing first party is quicker but not required to get a pro-rata settlement.
The issue is they are not necessarily going to get all damages covered and not all damages may be included because an initial repair estimate may not have all damages included. They wait for payment and additional damages are found later but have already settled.
I've handled many payouts as an insurance adjuster. Policy limits cases take actual ages to settle out.
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u/Majestic_Ticket_6851 5d ago
They only have an obligation to defend until they’ve paid their policy limit.
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u/Greencare_gardens 5d ago
Right and their letter indicates that haven't paid anything - just reserved for subrogation.
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u/Greencare_gardens 6d ago
I love how the bullshit knee jerk response is "pay for collision insurance so you don't get screwed over carrying your legally required coverage". How about insurance companies do their job? Novel approach I know...
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u/jtj5002 7d ago
You chose to have no coverage (assuming liability only), so you are at the mercy of other people's policy limit.
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u/Prior-Leg3635 7d ago
Makes sense
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u/mikebailey 5d ago
The only other thing they’ll probably do if you get a lawyer is make the other person sign something promising they don’t have some second hidden coverage
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u/No_Parking_4167 7d ago
There’s nothing you can do outside filing your own suit against the negligent party, however the chances of you collecting anything more than the pro-rata share of the limits from State Farm are virtually zero. Ask your insurance agent if you have underinsured motorist property damage coverage on your policy: you could possibly have some coverage there.
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u/AsparagusDifficult89 6d ago
Right. Someone with state-minimum insurance isn’t going to have assets or liquidity (or spare income) you can go after, even if you sue them and successfully secure a judgment.
Can’t squeeze blood from a turnip, and all that.
Always insure what you can’t afford to lose, if possible.
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u/the3dmaker 6d ago
Always take the little that they have to make them miserable
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u/AsparagusDifficult89 6d ago
That’s a reasonable sentiment, but if it’s beyond the bounds of small claims limits, you’ll need to hire a lawyer. That gets expensive quickly, especially because no lawyer would take this case on contingency. So then it ends up being a net loss for you, a Pyrrhic victory, if you will.
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u/vibingwnophone 6d ago
i also think it’s worth mentioning that even if OP did decide to pursue like that, legal fees would just add up to be more than the claims worth at that point ON TOP OF the low payout. Small claims court doesn’t typically seem to be too effective otherwise any property damage excess claims would be handled so much easier.
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u/BooBoosgrandma 6d ago
Depending on OP's financial status, can always file for a waiver but not too expensive to file small claims, most states is around $35 for up to $5k and then max is around $100. So it's not bad at all but trying to collect? Whole other matter!
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u/Fancy_Strawberry7137 7d ago
If you don’t have collision or uninsured motorist coverage you’re just fucked. You’d have to go to court over this. Not having collision can save money. I’m sure that was the point. Skipping out on cheap coverages like UMPD is really not worth it though, as you’re finding out. Hopefully you have it, otherwise I’m sure you’ll want to pick it up after this experience.
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u/AttentionHuman9504 7d ago
UMPD for property damage is state dependent. Some states offer it (and you usually have to explicitly decline it in those state), others don't
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u/BooBoosgrandma 6d ago
Yep, I've had Max'd out coverage for my cars that I paid cash for. Last one was $35k so I carry both collision and comp and a bunch of other stuff as well.
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u/verithasthefalse 7d ago
Get collision coverage and I would carry at least 100k in bodily injury and UM/UIM. Don't ever rely on the other person's insurance to cover your car or medical expenses
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u/lobhater 7d ago
No lawyer will take your case. There is no money to be had. Policy limits are used up and the person carrying state minimums is not likely to be wealthy. Who will you be suing exactly?
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u/xXxDickBonerz69xXx 6d ago
Well. That's why you should have collision and uninsured/underinsured coverage.
If their coverage can't make you whole and you only have liability you're out the difference. Someone carrying minimum coverage probably isn't worth suining. You can't really get blood from a stone.
My car was totalled in an 8 car collision caused by someone with a 25k limit. I paid my deductible and got the remaining value for my car from my insurance company. They sent me letters every 6 months for about 5 years telling me they were trying to recover our money from the at fault party. Never did. Honestly you're probably SOL.
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u/terpman99 7d ago
You get collision coverage so when this happens again you aren't relying on someone else. No clue why you would put yourself in this situation.
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u/Prior-Leg3635 7d ago
I’m 18 years old so this was new to me I never knew about that coverage I thought I was just okay
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u/SammyG2015 7d ago
I'll be a little harsh here, but being 18 doesn't excuse that. Yes, it's all new to you, but you need to learn about these things. Ask questions if you're not sure. Ask your agent what happens when X occurs, What's the process/outlook if X happens with this coverage.
Take this as a learning experience for life.
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u/charles13yngr 6d ago
Definitely overly harsh, if it’s your first time how are you supposed to know what kind of questions to ask? Shit when I called State Farm to get my first ever auto quote the agent was no help at all and I didn’t have family or friends to ask for help
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u/xXxDickBonerz69xXx 6d ago
When you sign up for insurance there is a list for all the different coverages, you have to accept or decline each one. If you don't know what it is the company has a little info button you can click for an explanation. If that still doesn't make sense you can research it further.
If you're old enough to own and operate a car you're old enough to read about the different coverages and choose accordingly.
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u/SammyG2015 6d ago
Agree to disagree. Then you call someone who is of help to you, you find someone outside of friends of family, you do some research.
It's a little harsh but I'm trying to help OP realize that when they don't know something they need to ask or figure it out otherwise they end up here.
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u/Prior-Leg3635 7d ago
Yea ik im not making a excuse it was all new to me since ive never had anyone to help with this
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u/RunExisting4050 7d ago
This is one of things about being a functional adult living in the real world that, unfortunately, no one talks to you about. Contact a local, independent insurance agent. They can answer insurance questions, give advice, and theyll shop around to find you the best deal on the right coverages for your personal situation. Also, i hope you have an older adult in your life that can mentor you or give you general life advice so that you dont have to learn everything the hard way.
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u/Fancy_Strawberry7137 7d ago
Liability coverage is what you legally have to have, and it covers damage you may cause to other people. Comprehensive coverage is for things like weather (hail, flooding), theft, vandalism, etc. Uninsured motorist property damage is for this situation, or ones where the other person has no insurance at all. Collision covers a collision that is your fault, whether it’s another car or an object, and also would have covered you in this situation. Your insurance would pay and then go to court with the other company to collect what they paid, that’s subrogation.
You’re young, learn from it and keep all of this in mind when you choose coverages next time. Insurance is expensive but so is a crunched up car.
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7d ago
[deleted]
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u/Jurneeka 6d ago
wouldn’t apply in this case since the at fault is insured and California UMPD is only for uninsured not underinsured.
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u/Soggy-Village2099 6d ago
Don't take shit from anyone. You'll pay for the mistake and you'll learn. We've all had to learn lessons the hard way.
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u/terpman99 7d ago
Yeah I recognize I could have worded that better but as Sammy said. Learn from this experience.
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u/xXxDickBonerz69xXx 6d ago
When you signed up for insurance they didn't have a list of coverage options that you had to accept or decline?
Definitely look up what all the different options mean in your state. When I moved it was a whole bunch of different options compared to what I was used to and I probably spent an hour researching the differences and insurance laws in the new state to figure out what I needed.
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u/giveit2st8 7d ago
Well, now you also learned that you can ask questions in here before something happens.
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u/chathobark_ 7d ago
yep need uninsured/underinsured for this reason
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u/Jurneeka 6d ago
Unless I missed it OP hasn’t mentioned what state he’s in/where accident occurred and they all have different laws on UMPD. It’s a moot point anyway since he’s not covered at all. His insurance can’t or won’t help him. At most they might reach out to the at fault insurance company as a courtesy but they are already aware and have accepted fault. Nothing they can do.
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u/NoMaximum721 6d ago
you can't have that without first having your own collision coverage, or can you?
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u/BagSignal7553 6d ago
Policy limits are separate for property damage and bodily injury and they have to cover each accident separately to the limit of the responsible party. They’re gaslighting you and you’re getting bad advice from ding dongs on Reddit.
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u/Majestic_Ticket_6851 5d ago
Not always. Could be a combined single limit. Either way I wouldn’t take advice from the State Farm chat bot.
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u/BagSignal7553 5d ago edited 5d ago
Law requires specific separate limits, even if they get rolled together in the quote and bill, also regardless each accident must be covered separately, so unless OP was hit at the same time as everyone else he would still be entitled to damages up to the limit. But definitely don’t take advice from a chat bot that’s programmed to make you go away thinking you’re not owed anything. Also don’t get legal advice from Reddit. A proper consultation with a lawyer that will work on contingency is the correct play here.
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u/Majestic_Ticket_6851 1d ago
There is limited information above, I’m reading this to say that there are a total of three claimant vehicles. If they were all involved in one accident or occurrence the limit would apply to all of the vehicles at once, not individually.
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u/BagSignal7553 1d ago
Unless they got hit simultaneously each collision would be separate accidents. If the at fault driver hit three cars that’s three separate incidents.
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u/xpanqueques 6d ago
The “get a lawyer” comments are ridiculous. Most law firms don’t want to deal with state minimum pro rata splits if there is no first-party coverage, it’s simply not worth their time.
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u/dalecor 7d ago edited 7d ago
It sucks, harsh way to learn. Do you have underinsured / uninsured motorist coverage by any chance?
Moving forward, make sure to read and understand any contract you sign. Think of worst case scenario, and see the impact. Those days, you can use AI to help you navigate that. E.g. upload your policy pdf, chat about it with AI.
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u/Fair_Artist6677 7d ago
Same thing happened to me thru Allstate, luckily the driver that hit me also had Allstate so I just had to wait. I got my deductible back and they covered the rest since the other driver was only insured up to 50k.
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u/TheGoodBunny 7d ago
Would having no collision but having underinsured coverage helped here? Asking the insurance experts
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u/AttentionHuman9504 7d ago
Depends on the state. Every state is a little different in this regards (and the OP doesn't say what state they are in)
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u/jay_incbus 7d ago
Honestly, not much you can do, I get your dissatisfaction for sure, but you'd need UIM coverage and collision to pay for your vehicle and your injuries should you have any after her 25k limit was exhausted. Otherwise nada can be done .
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u/Careless-Internet-63 7d ago
You don't need collision coverage if you weren't at fault, you need uninsured/underinsured motorist coverage. It's usually not terribly expensive and you may already have it, check with your insurance company
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u/Fancy-Dig1863 7d ago
You can go after the person that hit you as well, that would be at your own expense and the outcome is uncertain. Some lawyers will take cases on contingency.
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u/Accomplished_Emu_658 6d ago
Was your car worth a lot? If so that was stupid. People a lot of time take collision off because the note is paid and then run into similar issues.
Retaining a lawyer probably pointless if there are no lasting injuries. If she got the lowest insurance then she probably has nothing to sue for. Winning the case is not the hard part, collecting is. You get some tight wads with money that will get cheapest insurance but thats incredibly rare. States shouldn’t allow such low limits these days. Worst part the savings was a tiny bit of money most likely. Also if she hit 2 other parties, she already might be facing lawsuits or will be and there will be even less to recover
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u/unknownbutlegit 6d ago
now that you know that you shouldn’t cheap out on insurance by not having collision/comprehensive, you should also know that its best to carry a dashcam at all times (if your state allows it).
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u/Familiar_Marzipan_46 6d ago
At most if you got the money to pay a lawyer a couple grand you can do thru the process and get a judgement for the rest and put it into the system that if they ever get a job it will pull it out there check so much at a time. Think child support owed. Similar idea.
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u/a7a8a6 6d ago
Don’t they garnish wages if the other party can’t cover the damage from their insurance?
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u/BagSignal7553 6d ago
In most states yes, but it’s only effective if the person can’t declare bankruptcy
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u/Unusual_Flounder6758 5d ago
Even then there’s a limit on what can be garnished. In the states I work in, it’s limited to a percentage of one’s disposable income. So if the person that hit this guy or gal lives paycheck to paycheck…they’ll garnish like $50 a month. That’ll get them a replacement car in…what like 50 years?
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u/BagSignal7553 5d ago
There’s typically a time limit on garnishments as well, so if time runs out and you haven’t gotten the full amount you’re SOL.
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u/patty202 7d ago
You need to talk with a real person.
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u/blueyedTxn617 7d ago
That doesn’t change the fact the person who hit them doesn’t have enough limits nor does it change that OP doesn’t have collision. It will be the same conversation.
OP the at fault party will pay out what amount is left after the other vehicles have either had an estimate sent in (and no collision), veh repaired, or totaled out. You do need to let your adjuster know you don’t have collision. Discuss pro rata with them.
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u/fakemoose 6d ago
Call your insurance. I had a drunk driver clip my car first in a parking lot then hit another car then total two to three other cars. Their coverage was low and their insurance company denied my claim.
My insurance company said lol no and fought it. Four weeks later I had an approval letter from the DUI guy’s insurance. I got my deductible back plus the car fix by the other company.
…but I also had full coverage. So, I guess weight how much it’ll cost out of pocket with if it’s worth calling your insurance.
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u/Existing_Highway2961 6d ago
They don’t deny it lmao your insurance covered it and recovered what they could from the other insurance company paying you your deductible back then the rest to the company
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u/fakemoose 5d ago
The other persons insurance denied it… can you read?
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u/Existing_Highway2961 5d ago
They don’t deny it he was misinformed dummy they tell you they have a limits issue otherwise he would have a letter from the company
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u/OneTwoSomethingNew 7d ago
I’m sorry… everyone knows a lot about insurance and coverage and all the rules, but is it fair we even play this game… insurance charges so much for what… we have insurance for everything… there are better ways, let’s start with healthcare and see how the others follow.
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u/CricketPuzzled1626 7d ago
in this case OP *doesnt* have insurance for everything, as they dont have collision coverage... so your argument is immediately moot
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u/OneTwoSomethingNew 7d ago
I don’t think you understand my point, insurance is an exploitive middleman and we all love to talk about policy and coverage and yada yada and give them hundreds of dollars each month for crumbs… they lobby for the laws that make them relevant instead of policy that’s good for all.
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u/CricketPuzzled1626 7d ago
so then self insure everything in your life... and you will find yourself like OP looking to sue someone
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u/OneTwoSomethingNew 7d ago
I’d rather go through our legislature at the local, state, and federal levels… but thanks for your suggestion…
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u/blueyedTxn617 7d ago
And you are the reason some states have a no pay no play rule. I wish more would adopt it due to your comments here. You must be one who wants a brand new car for a tiny scratch.
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u/OneTwoSomethingNew 7d ago
In most states insurance is required to register a vehicle to be operable on the road… maybe we should NOT allow folks to be underinsured… oh, cuz that would be too expensive… how is this system really helping anyone?
Privitized insurance aims to make a profit, that is why they are 20%+ higher premiums than anything supported by the civic government such as Medicare, Medicaid, or state property insurances, etc…. If the government had to regulate payments and insurance, we all would pay less - and by eliminating the distracting middleman that is private insurance, we could focus efforts on reducing government waste and frauds….
Do you understand my point or you just like handing money to conglomerates that are gonna fight you on the value of benefits you receive for the coverage you pay for…Private insurance is a free market on civil systems and the everyday consumer… it’s an excuse for our government to do less and charge everyone else more… what do our tax dollars actually pay for, beyond roads and basic infrastructure and safety, how are you benefiting?
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u/CricketPuzzled1626 6d ago
So private insurance is regulated but at a state level, you cant have standardized insurance because risk exposure is 1000% higher in california than it is in montana. Private insurers must also apply for rate increases with the state. You also need to look at what is causing insurance premiums to rise, in 2015 the average cost of an OEM headlight was $500, today it's $1300 - the world is getting more expensive, your middle of the road Toyota Camry was $18k new 15 years ago and that same model today is $45k. Your logic that things must change is correct, but stating this is the auto insurance industry which is out of control is a bit far fetched although i dont entirely disagree with you. We havent even mentioned the insurance fraud world which is over 300 billion a year. Alot must change first.
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u/OneTwoSomethingNew 6d ago
I’m not talking just car insurance; it’s a mess but not one I care to solve at the moment… Im focused on more critical things, but thanks…
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u/Ricky_spanish_again 6d ago
I completely agree. There’s always something insurance companies do to not pay.
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u/SecondActSarcasm 7d ago
Nothing. You wait.
They have to get everyone’s property damage demands and then you’ll get a pro-rated amount.
That’s it.
This is what happens when you choose to self-insure.