Insurance Scam or Honest Mistake?

tarnok

I'll try to keep this brief.

A tree fell on my car. I immediately filed a claim with my insurance and within two days the adjuster was there to declare it a total loss and give me a check. He mentioned I could keep the car if I wished and the salvage value would be deducted from the amount I would receive. I declined, signed over the title and received a check for the full value of the car less my $100 deductible. Some days later the car was towed away.

Skip forward a week and I have now received a letter in the mail indicating that they (the insurance company) believe that my car has been declared a total loss and that I have _kept_ the car. It goes on to say that the car is still covered etc, etc, but the part that worries me is that they believe that I still have it which I dimly see may hint at some sort of fraud and worse still may cause me legal problems.

I just bought the new car today and talked with someone about the insurance so the old car is now definitely off the insurance, but this was before I got the letter. I've since called back and the compartmentalization of my insurance provider means that no one seems to be able to tell me what's going on and they want me to talk to the adjuster who, if fraud there is, seems to be the one to have committed it.

I'm really not sure what to do from here. I have the adjuster's number and the underwriter's number which seems to be where the letter originated, but I won't be able to contact them till tomorrow. Does anyone have any insight into this situation that might help guide my next steps?

Derrick

It doesn't sound like fraud to me. Maybe mishandled paperwork or poor organization on the insurance company's part is more likely.

You have a check for the full amount of the car, and it cleared? You signed over the title so nothing to with it in the future is in any way your fault?

Sounds to me like you're in the clear.

MegaMan001

Long time former employee of The Illinois Department of Motor Vehicles here. You got a check that cleared and you purchased a new car and you signed over the title to the insurance adjuster?

You've got no issues here.

If you're cautious, which it sounds like you are, I'd keep a copy of whatever documentation you received from the adjuster in case anyone asks you later on. In fact, I'd probably just call the insurance company one more time to clarify you did not keep the car and get some kind of confirmation number / name of whoever took that information.

zepherin

Also if you remember the tow company they used get a receipt from them.

Void Slayer

You should also check that the title was actually signed over to whoever, that might be the part of the paperwork that was mishandled.

tarnok

Thanks for the responses. Just to clarify my concerns: I'm not too worried about the insurance company. They probably have enough money to look out for themselves. I am a little worried that the _government_ may think I still own this car and try to get me to pay taxes on it or come looking for me if it gets in a wreck. I was asking if it might be fraud mostly because the costumer service person didn't seem very helpful and I thought I might be able to get a little more traction if this was evidence of some sort of well known and understood scam that one of their agents might be perpetrating.

I guess what I should really be asking is, if the people at the insurance office aren't much help tomorrow, is there anyone I should contact to make sure that the local government or DMV doesn't come after me for taxes or fees on a car I don't own?

zepherin

tarnok wrote: »

Thanks for the responses. Just to clarify my concerns: I'm not too worried about the insurance company. They probably have enough money to look out for themselves. I am a little worried that the _government_ may think I still own this car and try to get me to pay taxes on it or come looking for me if it gets in a wreck. I was asking if it might be fraud mostly because the costumer service person didn't seem very helpful and I thought I might be able to get a little more traction if this was evidence of some sort of well known and understood scam that one of their agents might be perpetrating.

I guess what I should really be asking is, if the people at the insurance office aren't much help tomorrow, is there anyone I should contact to make sure that the local government or DMV doesn't come after me for taxes or fees on a car I don't own?

Oh yeah, you can call the local dmv, and they'll be able to tell you if they think you still own the car. You can also call your cities department of taxation and the states department of taxation, and they will definately tell you if you owe them money. I know when I lived in Virginia the city I lived in, knew which car I owned, how much money I owed them and when I owed them the money, and I had my old car towed away and purchased a new car.

Aioua

Yeah, you might've missed some step with signing the title over. I know, at least in WA state, after you sign off on the title you have to go onto the DOL's website and report the sale (or mail a form in, if you're an old person) for it to count.

Dr. Frenchenstein

sounds to me like the insurance company is dragging it's feet. but it doesn't hurt to check your registration out.