How does car insurance handle claims?

Darkewolfe

Long story short: I backed into a guy's car in a parking lot. I left him a note and decided to report the accident. I'm still not certain reporting it to my insurance rather than just paying out of pocket was the right move, but for some reason I was paranoid about how expensive it might get to replace his bumper. Either way, that's done with. (I suspect a number of folks might say I should have paid out of pocket. I think that might have been the right move too, but my nerves were jangled and I took it to insurance.)

The guy reached out to me and said he was taking his car to the shop today. I called my insurance, and they told me that I should tell the guy to wait till they call him. I don't think he's inclined to wait however long it's going to take them to do that. So assuming he just takes his car to the shop and gets the repairs done, how should I handle things? Just keep directing him to my insurance company as the place he has to look for reimbursement? I'm trying to keep this as amicable as possible because he lives on my block.

For clarification, it was me backing out and tapping his parked car which had no one in it. No possibility of injury claims or anything wonky of that sort.

zagdrob

Darkewolfe wrote: »

Long story short: I backed into a guy's car in a parking lot. I left him a note and decided to report the accident. I'm still not certain reporting it to my insurance rather than just paying out of pocket was the right move, but for some reason I was paranoid about how expensive it might get to replace his bumper. Either way, that's done with. (I suspect a number of folks might say I should have paid out of pocket. I think that might have been the right move too, but my nerves were jangled and I took it to insurance.)

The guy reached out to me and said he was taking his car to the shop today. I called my insurance, and they told me that I should tell the guy to wait till they call him. I don't think he's inclined to wait however long it's going to take them to do that. So assuming he just takes his car to the shop and gets the repairs done, how should I handle things? Just keep directing him to my insurance company as the place he has to look for reimbursement? I'm trying to keep this as amicable as possible because he lives on my block.

For clarification, it was me backing out and tapping his parked car which had no one in it. No possibility of injury claims or anything wonky of that sort.

Yes, your insurance company has contacted him so it's out of your hands. Just refer him to your insurance company - that's what you pay them for.

Depending on your state, his insurance company will send someone out to get an estimate of damages, or send him to a shop to get an estimate. He'll pay his deductible, and the remainder will be paid by his insurance company. His insurance company will work with your company to settle the account.

If he doesn't work with his insurance, it's basically the same thing but he'll be contacting / working with your insurance company directly.

EDIT - as for his deductible, he can file what's called a 'minitort' against you to have that reimbursed. Or, you can just pay him out of your pocket to save everyone a little bit of headache. Again, depends on the state a bit.

EDIT 2 - Mini-tort seems to be a Michigan thing? Same / difference - he may need small claims, but if you are worried about hurt feelings you can always come to an agreement on your own. Make sure you use a check and write the reason in the 'memo' line for the records, of course.

Orestus

(Former claims adjuster) Incorrect regarding the deductible, that would only apply if he goes through his (the damaged car guy's) insurance company. If he goes through OP's insurance then OP's insurance will determine what he is owed based on their formulas and pay him in full, as this accident is 100% OP's fault. The damaged car guy only needs to think about his deductible if he uses his own insurance.

At this point it is out of OP's hands and he should just let his insurance company handle it. Assuming the damaged party is going to go and get his car repaired w/out waiting, there are two possibilities of what will happen:

1 - OP's insurance will review his repair costs, determine they are reasonable within OP's insurance guidelines, and pay the dude 100% of his costs. (This is by far the most likely if the damages are low). Damaged party should also be entitled to a rental car while his car is in the shop, but he would definitely want to get authorization from OP's insurance company first before doing that.

2 - OP's insurance company will review repair costs and say it is above what they will pay for this type of damage. This can happen if the guy does something unreasonable or goes somewhere and is getting ripped off (i.e. the dmg is scratches to the bumper which would normally just be repainted but the guy insists on having an entire new bumper ordered, painted and put on). In this case, OP's insurance will offer him the standard amount they would pay for that type of claim, and he can take it or leave it. If he leaves it his option at that point is to go to his own insurance company, report a claim, pay the deductible, and then let his insurance company come after OP's insurance company to try to get his deductible back.


The damaged party's best move would be to get insurance company contact info from OP, call them, and get their authorization to use a repair shop that insurance company works with, which will guarantee all damage will be 100% taken care of w/ no money laid out by the damaged party.

Darkewolfe

Very helpful responses in both cases, especially with the insight. Thanks @Orestus.

This is probably all I need then, thanks folks.