Responding to Subrogation Claim in New York State

[prrd]

My question involves insurance law for the state of: NY

Hi there,

I was involved in a minor accident with a rental car 7 months earlier. The guy in the car ahead of me was pulling over to the right and as I was about to go past him, he pulled back in the road, resulting in a minor brush on his car. We exchanged contacts, I offered to report this to police, but he said he will think about it and call me if he plans to report this. No report was made, at least to my knowledge.

Later that day I hit the rental car on the side rails of a highway (no other vehicle was involved), which caused some damage to the right side front door. I had taken insurance through the rental agency and that covered for the damage to the rental car.

Since the first guy never contacted me or reported it to police, I left the matter there and moved on. Yesterday, I got a voicemail from the rental car agency saying that the first guy's insurance is after me for subrogation and my rental insurance did not cover damages to third party.

I have no other insurance and I am a student who cannot afford expensive settlements. What should I do now? I am worried that the insurance will try and link the 2 different incidents. I understand that NY is a no fault state, what are my protections in this case? Thanks.

[Mr. Knowitall]

From what you have told us, you caused damage to somebody else's car through the negligent operation of a motor vehicle and, should you choose not to pay for the repairs, you can be sued for the damage you caused. If you choose you can try to negotiate something - a settlement for less than the full claim, a payment plan, etc. - with the insurance company. Or you can "wait and see what happens." (If you do work out an agreement, get it in writing and be sure to both keep a copy of the signed agreement and to comply with its terms.)

In terms of "I am worried that the insurance will try and link the 2 different incidents", what's that about? We're talking about the insurance you purchased for the rental car, right? Is there some reason they would not have covered the first accident you caused that day? That they'll re-examine your claim, determine part of the damage repaired was from the prior accident, and then demand partial reimbursement based upon the fact that you didn't make a timely report of the first accident and don't have coverage for it? That they'll take the position that you fabricated the second accident and that you should either have to repay the entire cost of repair or possibly accuse you of insurance fraud? Something else?

[prrd]

Thanks for the reply Mr. Knowitall, the second part was not about the rental car's LDW but about how insurance will fix the blame (at fault) for the 1st accident given that there is no police report or evidence. Can they say that I was 100% at fault even if it was scuffing on the side and not a rear ending?

Don't rental cars have 3rd party insurance for minimum limit from the renter?

Is it possible for the insurance company to take so long (7 months) to contact me, shouldn't they contact me as soon as they get my information?