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Bodily Injury Claim

  • Thread starter Thread starter Krap
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K

Krap

Guest
What is the name of your state? What is the name of your state? California

About 2 years ago I rear ended another vehicle. At the time the other driver got out of their vehicle, looked at the damage and said, "it's no big deal, it was damaged before." We spent about five minutes exchanging information, she said that she was OK, and we went about our business. I reported the accident to my insurance company, and they paid approx $2,400 to repair my vehicle. At the time I was told that my insurance premium wouldn't go up unless I had a violation in the following three years - I haven't.

About a 18 months after the accident I noticed an increased in my premiums, but was too busy to inquire. Just recently, 24 months later, my premiums went up again, so I decided to call. I was then told that the person I hit filed for bodily injury, and my insurance paid $1,500 to fix her vehicle, and $1,500 total in three separate claims for bodily injuries. When I inquired further, a claims person looking at the file said that based on the cost to repair both vehicles, he could see why they settled on the bodily injury claim. He further went on to express that it was cheaper for them to pay out the $1,500 in injury claim than to go through arbitration. He then told me that I lost my good driver discount simply because I was at fault. I pointed out to him that according to my written policy, I shouldn't loose my good driver discount, simply for being in an at-fault accident. My policy states that I'm allowed one at-fault accident if the damages are in excess of $500, providing that no bodily injuries were involved. The agent said that he wasn't aware of that provision.

Nonetheless, I suspect that my insurance company misrepresented me by simply settling to pay the $1,500 bodily injury costs. After all, to go through arbitration would have cost them more, and furthermore, it's the only way they could have taken away my good driver discount. Consequently, they're able to recoupe their costs by increasing my premium by $600/year.

I also felt that someone should have called me to inquire about what happened after the other driver filed a bodily injury claim. I think my insurance company didn't put much effort into investigating what happened, because they know that I would eventually bare the costs.

Since speaking to the claims department, I was supposed to receive a callback from the agent that handled [mishandled] my claim; nonetheless, I haven't received any specific information as to why they settled, and I'm still awaiting a callback.

Please help me calm my suspecions, or provide me with a course of action.

Sincerely,

-Krap
 


K

Kevin O'Keefe

Guest
Krap said:
What is the name of your state? What is the name of your state? California

About 2 years ago I rear ended another vehicle. At the time the other driver got out of their vehicle, looked at the damage and said, "it's no big deal, it was damaged before." We spent about five minutes exchanging information, she said that she was OK, and we went about our business. I reported the accident to my insurance company, and they paid approx $2,400 to repair my vehicle. At the time I was told that my insurance premium wouldn't go up unless I had a violation in the following three years - I haven't.

About a 18 months after the accident I noticed an increased in my premiums, but was too busy to inquire. Just recently, 24 months later, my premiums went up again, so I decided to call. I was then told that the person I hit filed for bodily injury, and my insurance paid $1,500 to fix her vehicle, and $1,500 total in three separate claims for bodily injuries. When I inquired further, a claims person looking at the file said that based on the cost to repair both vehicles, he could see why they settled on the bodily injury claim. He further went on to express that it was cheaper for them to pay out the $1,500 in injury claim than to go through arbitration. He then told me that I lost my good driver discount simply because I was at fault. I pointed out to him that according to my written policy, I shouldn't loose my good driver discount, simply for being in an at-fault accident. My policy states that I'm allowed one at-fault accident if the damages are in excess of $500, providing that no bodily injuries were involved. The agent said that he wasn't aware of that provision.

Nonetheless, I suspect that my insurance company misrepresented me by simply settling to pay the $1,500 bodily injury costs. After all, to go through arbitration would have cost them more, and furthermore, it's the only way they could have taken away my good driver discount. Consequently, they're able to recoupe their costs by increasing my premium by $600/year.

Please help me calm my suspecions, or provide me with a course of action.


Do not know if I can calm your suspicions but one alternative is contacting the CA Insurance Commissioner's Office and talking to them about what happened. It may even lead to filing a complaint with the insurance commissioner over what happened. You should be able to find contact for their office by doing a search at google.com.

- Kevin
 
K

Krap

Guest
Mr. O'Keefe, thanks for taking timeout to read my claim, and also for taking the time to respond.

K Rap
 
If you rear-ended somebody hard enough to cause $2400 damage to your vehicle it is not unlikely that these people may have experienced pain, soreness, stiffness, headaches, etc. Just because they were okay at the scene doesn't mean they might not have symptoms later. (You usually aren't hurting when you leave the gym, but the next day......)

It sounds as though your insurance company paid 3 individuals $500 each to settle injury claims they made against you. Your insurance company evaluated their claims based on the damage to the vehicles, which helps determine the strength of the impact. They determined that the mechanism for injury was present. The insurance company would have certainly paid more if these folks had decided to treat medically for the injuries they claimed. It sounds like your insurance company got off easy.

Although you don't like the fact that your rates went up, had your insuance company denied their injury claims, the injured party's recourse would be to file a lawsuit against you. They would have probably started running up medical bills, as well. The typical liberal California jury would most likely award them more than $500 each. Your insurance company knows this. It would make no sense for them to deny this type of injury claim, then have to pay attorney fees for your defense after you get sued, plus the more than $500 each jury award these people would most likely receive. Maybe they were really injured and maybe they weren't. How can you prove to a jury that these people didn't have headaches, or whatever?

It is my opinion that your insurance company acted both in their best interest, as well as yours.

In California, it is my understanding that your good driver discount allows for one minor traffic citation OR one minor property damage only accident. A negligent accident in which bodily Injury claims in excess of $500 are made against you (whether real or bogus), eliminate your "good driver" discount. This rule comes from the California Dept. of Insurance, and not your insurance company. It was a provision of Prop. 103.
 
K

Krap

Guest
Thanks RunningOnEmpty, hearing it from a third party always helps. Do you, however, see why I'm a little concerned that an insurance company could easily settle for an injury claim if they know that they would recoupe the money in a period of a year? Now I see why some people would claim bodily injury in any accident. Thanks for taking the time out to read and reply to my posting. I do feel much better hearing from a third party.

Take care,

Krap
 

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