Pay Deductible or Out of pocket?

[46cover2]

Hello all, I have scavenged this board for about 4 months just reading / learning from past members posting their issues or seeking advice. I have learned a lot from reading these forums but now I am requesting some advice from a 3rd point of view.

My sister was heading home from work and accidentally bumped the car in front while they slowed down towards a red light. (She currently had liability only with $500 deductible.)

The car she bumped was a 2000 Jeep Cherokee. He was infuriated and irate due to the fact the vehicle was not his but his cousins that he was going to purchase in the coming weeks. He advised that they exchange info and contact their insurance agency.

The next day, my sister called seeking advice - The person she hit called her advising that he is willing to make life easier for her if she just pay cash. He stated that he took his Jeep to a shop and mentioned it would cost $2100 for replaced bumper/painted and all but he is will to take half - she would have to pay pay him $900 and no insurance claims, no problems with her car insurance rates increasing.

I asked my sister on what type of information did you get from him? She mentioned she wrote down his:

license plates (which is not his, since he is not the owner but driver and we have no way knowing if his cousin's insurance covers other drivers)

name

phone number (drivers, not the owners)

Insurance Name and policy number: (the owners, not the current driver)
- he mentioned that he is insured (but his name on not on the card)
-


I mentioned to my sister if she went to the police to make a report - she advised that he already made the police report and gave the report number to my sister.


My question is:

A. Have her pay the deductible and get his car fixed.

B. Pay the $900 he is asking

I think option A would be best bet. Is there a way to confirm that he is covered by his cousin insurance.

thanks.

You are probably getting this answer a little too late, but I figured I would answer it if anyone else was interested.

I'm sorry to hear your sister was in an accident. Accidents can quickly turn into the biggest headache of one's existence. I know this, because I have been a liability claims adjuster for 2 of the top three insurance companies in the US. There are a couple of things that alarmed me in your post:

1.) The accident seemed pretty minimal - why are the repairs $2,100?? It would have had to be a darn good impact to create that much damage on a 2000 Jeep Cherokee. Was your sister in a smaller compact vehicle? How fast was she going? Was there much damage on her vehicle? If your answers confirmed that this was a "darn good impact" and justified the $2,100 worth of damage - then why were the police not called?? Why did he choose to create a police report with out your sister being present? They could have claimed 5 passenger injuries when there was really only 1 driver and it would be word vs. word - que Judge Judy TV show intro music please. Your sister needs to get her hands on that police report and make sure everything is correctly written down (no injs, 2 vehicles only, no passengers, driver info, owner info.) Your sister also needs to make certain that she was not listed as a hit and run driver - leaving the scene of an accident can have its consequences.

2.) Your sister is legally liable for the OWNER'S damages. Your sister only owes the driver for his bodily injury if he even sustained any. Why is your sister talking to the driver about the vehicle damage? Your sister's insurance company wont even want to speak to the driver outside of taking his statement (for liability purposes) and asking if he is injured.

3.) If your sister pays the owner out of pocket for his damages, she will have no way to prove it. I can not tell you how many times people pay out of pocket after an accident and the claimant immediately turns around and files a claim with your insurance company anyway. He will get paid by the insurance company and you. Your insurance company cannot seek payment recovery from him after you call and complain because there is no proof you paid out of pocket and the insurance company is legally liable for the claimant's damages. And up your rates go.

4.) If you pay out of pocket for his damages, you must also be prepared to pay out of pocket for the loss of use to his vehicle (rental), lost wages from work (if injured - driver), and bodily injury - driver.

5.) Your sister only has liability coverage; therefore, she should not have a deductible. She may want to look at her policy again. If she has a $500 deductible, that probably means she has collision coverage. Collision coverage will fix the damage to your sister's vehicle under her policy. Property damage coverage fixes a claimants vehicle if your sister caused damage to that claimant's vehicle AND your sister was legally responsible for the accident. Again - your sister's property damage coverage would fix the 2000 Jeep, and property damage coverage does not come with a deductible.

Please note that every state is different and it is always best to consult with your insurance company after an accident happens - because, well...that is what you pay them for.

I really hope this helped...and if it got to you too late, maybe it helped someone else.

[maxjlone]

Out-of-Pocket Costs" are costs that you pay out of your own pocket when you get health care even though you are insured and have already paid a premium. When out-of-pocket costs are very low and there are no constraints on care provided, then insurance can be very expensive and inefficient. When out-of-pocket costs are very high and there are no limits on how much you might pay, then insurance can be almost worthless for reducing your financial risk. Intermediate levels of out-of-pocket costs are generally the best deals. For these reasons, you need to know what out-of-pocket costs a health insurance policy has.
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