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  1. #1
    Join Date
    Mar 2016
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    18

    Default Does an At-Fault Driver's Insurance Pay Your Uncovered Costs Before Subrogation

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

    Hi
    i had a car accident last month and another driver immediately admitted his fault. I still decided to use my Collision Damage coverage and as far as my car was Total Loss my insurance paid me the actual car value which was around $30 000.

    i'm also trying to file Loss of Use claim (for car rental expenses) to driver's at-fault insurance but they're saying their damage liability is just $25 000 and they already received subrogation from my insurance for $30 000 so MUST pay subrogation first and can't reimburse my car rental expenses.
    i can't find any information on the Internet about that so maybe you can advise me what does Insurance Law says in such cases - should driver's at-fault insurance pay my claim first and then subrogation from my insurance. OR subrogation claim prevails?

    I also have Uninsured/Underinsured Motorist Damages coverage from my insurance and tried to file Loss of Use claim to them. But they also denied my claim saying "Underinsured Motorist Damages coverage can be used ONLY in case i filed damages liability claim to driver's at-fault insurance but not in case i used my Collision Damage coverage". Again i can't find any information on the internet about that:-)

  2. #2
    Join Date
    Jan 2006
    Posts
    38,530

    Default Re: Subrogation or My Claim First

    If the other drivers insurance has a limit of $25k then that Is al they will pay, period. Since there was already a claim for more than that they are liable for nothing more.

    I would think your insurance would be liable for the rental once you file a claim with the other insurance and can prove they denied it based on the exhaustion of liability.

    Unless you signed a release you should be able to seek the damages independently from the other driver

  3. #3
    Join Date
    Mar 2013
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    16,859

    Default Re: Subrogation or My Claim First

    Quote Quoting ivasergey
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    i'm also trying to file Loss of Use claim (for car rental expenses) to driver's at-fault insurance but they're saying their damage liability is just $25 000 and they already received subrogation from my insurance for $30 000 so MUST pay subrogation first and can't reimburse my car rental expenses.
    i can't find any information on the Internet about that so maybe you can advise me what does Insurance Law says in such cases - should driver's at-fault insurance pay my claim first and then subrogation from my insurance. OR subrogation claim prevails?
    Subrogation first. If there's nothing left you get nothing.

    You can sue the driver for the rental car cost. He'd still be liable for it. Write a demand letter to him first advising him that he's responsible for anything his insurance won't pay. See how that goes.

    Quote Quoting ivasergey
    View Post

    I also have Uninsured/Underinsured Motorist Damages coverage from my insurance and tried to file Loss of Use claim to them. But they also denied my claim saying "Underinsured Motorist Damages coverage can be used ONLY in case i filed damages liability claim to driver's at-fault insurance but not in case i used my Collision Damage coverage". Again i can't find any information on the internet about that:-)
    You can find that information by reading your policy. Trust me, it's in there. Underinsured and Uninsured Motorist Coverage is there if you are INJURED by an underinsured or uninsured driver UNLESS your coverage specifies that property damage to your car is also included. If there is a limitation that you don't get the coverage for your car if you've made a claim on your collision coverage, that would also be in your policy. So quit looking on the internet when all of that is right in your policy.

    Quote Quoting jk
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    I would think your insurance would be liable for the rental once you file a claim with the other insurance and can prove they denied it based on the exhaustion of liability.
    Generally, not unless he purchased Rental Reimbursement Coverage on his own policy.

  4. #4
    Join Date
    Mar 2016
    Posts
    18

    Default Re: Subrogation or My Claim First

    Quote Quoting adjusterjack
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    Subrogation first. If there's nothing left you get nothing.

    You can sue the driver for the rental car cost. He'd still be liable for it. Write a demand letter to him first advising him that he's responsible for anything his insurance won't pay. See how that goes.



    You can find that information by reading your policy. Trust me, it's in there. Underinsured and Uninsured Motorist Coverage is there if you are INJURED by an underinsured or uninsured driver UNLESS your coverage specifies that property damage to your car is also included. If there is a limitation that you don't get the coverage for your car if you've made a claim on your collision coverage, that would also be in your policy. So quit looking on the internet when all of that is right in your policy.



    Generally, not unless he purchased Rental Reimbursement Coverage on his own policy.
    Thanks a lot for your replies. I've checked my policy and the only limitation i found is the following:

    The limit of liability shown in the Declarations for "each person" for Uninsured/Underinsured Motorists Coverage is
    the most we will pay for all bodily injuries sustained by any one person in any one motor vehicle accident. The
    limit of liability shown in the Declarations for "each accident" for Uninsured/Underinsured Motorists Coverage is the
    most we will pay for all bodily injuries due to any one motor vehicle accident, regardless of the number of persons
    injured. The limit of liability shown in the Declarations for "each accident" for Property Damage Liability is the most
    we will pay for all damages to all property due to any one motor vehicle accident.
    This is the most we will pay regardless of the number of:
    a. Covered persons;
    b. Claims made;
    c. Policies or bonds applicable;
    d. Vehicles or premiums shown in the Declarations; or
    e. Vehicles involved in the accident.

    Do you think they can refer to this clause ?

  5. #5
    Join Date
    Mar 2013
    Posts
    16,859

    Default Re: Subrogation or My Claim First

    Before I answer any more questions, please go to the following link and compare the Texas Auto Policy to your policy and tell me if it's the same as your policy.

    http://lonestar.live.ptsapp.com/form...licyJacket.pdf

    Compare it page by page. I mean: really look at it. Obviously it won't be the same insurance company but if it's the same policy form I'll be better able to explain your coverage and possibly change some of my earlier comments because I'd forgotten that I had this resource available.

    PS: Were you injured?

    Oh, one other thing. Please don't go back to that other site. The other guy responding to your post is often clueless about insurance.

  6. #6
    Join Date
    Mar 2016
    Posts
    18

    Default Re: Subrogation or My Claim First

    Quote Quoting adjusterjack
    View Post
    Before I answer any more questions, please go to the following link and compare the Texas Auto Policy to your policy and tell me if it's the same as your policy.

    http://lonestar.live.ptsapp.com/form...licyJacket.pdf

    Compare it page by page. I mean: really look at it. Obviously it won't be the same insurance company but if it's the same policy form I'll be better able to explain your coverage and possibly change some of my earlier comments because I'd forgotten that I had this resource available.

    PS: Were you injured?

    Oh, one other thing. Please don't go back to that other site. The other guy responding to your post is often clueless about insurance.
    Done. That policy is the same - and UNINSURED/UNDERINSURED MOTORISTS COVERAGE section is identical to the one in my policy - word for word.

    Injures: I had burns on my wrists and my left ear was slightly hurt (all injures are from airbags). And i made a mistake and didn't see a doctor. Had to go to business trip on the next day after the accident so it wasn't time for that. I was taking pictures of my burns and submitted injury claim to other driver's insurance. They're now offering me 700$ to settle the claim.

    Thanks

  7. #7
    Join Date
    Mar 2013
    Posts
    16,859

    Default Re: Subrogation or My Claim First

    Quote Quoting ivasergey
    View Post
    Done. That policy is the same - and UNINSURED/UNDERINSURED MOTORISTS COVERAGE section is identical to the one in my policy - word for word.
    OK, good. You do have Uninsured Motorists Property Damage Coverage but your claim rep is correct that it doesn't apply because you were paid for your total loss to your vehicle. However, there could be occasions where you could be paid by both the Collision Coverage and the UMPD Coverage. That's explained in the Other Insurance provision, paragraph B. Again, that doesn't apply to your claim.

    The other thing about UMPD is that it doesn't pay for Loss of Use, only for damage to the vehicle.

    There is no coverage in that policy for a rental car (loss of use) as a result of a collision but there is coverage of $20 per day up to $600 in the event of THEFT of a covered vehicle.

    Rental Reimbursement Coverage is usually offered as an option for an additional premium. If you didn't buy it you don't have it.

    So you are back to looking toward the other driver for reimbursement of your rental car cost.

    Quote Quoting ivasergey
    View Post

    Injures: I had burns on my wrists and my left ear was slightly hurt (all injures are from airbags). And i made a mistake and didn't see a doctor. Had to go to business trip on the next day after the accident so it wasn't time for that. I was taking pictures of my burns and submitted injury claim to other driver's insurance. They're now offering me 700$ to settle the claim.
    How long did it take from the date of the accident for your burns and ear pain to clear up?

    What was the date of the accident?

    And what did you tell or write the claim rep about your injuries. Quote it word for word.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,530

    Default Re: Subrogation or My Claim First

    Quote Quoting adjusterjack
    View Post
    Generally, not unless he purchased Rental Reimbursement Coverage on his own policy.
    not arguing with you merely trying to get you to expand a bit so i understand.

    given the rental fees are damages the other party would be liable for, even though it is for a rental car, why wouldn't op be able to seek underinsured coverage for the cost of the rental given it was rejected by other party's insurance as beyond policy limits?

    I can understand that typically ones own policy must include rental if one seeks coverage for a rental but generally the context is this being where the party is at fault. In this situation the cost of rental is simply general damages the other party would be liable for.

  9. #9
    Join Date
    Sep 2005
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    Default Re: Subrogation or My Claim First

    Under the express terms of the policy, underinsured coverage extends only to property damage and personal injury, and property damage is defined to include only physical damage to the vehicle and (subject to certain limits) its contents.

  10. #10
    Join Date
    Jan 2006
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    Default Re: Subrogation or My Claim First

    Thanks.

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