When the other party has been determined liable, which insurance company should settle the claim?

I was in an auto accident earlier this week. The insurance company of the other driver is accepting responsibility for the accident. Based on issues of subjugation, my insurance agent is suggesting it may be best to have the other insurance company settle the claim. They tell me that I will not be able to reclaim my expenses from the other company and that under state law I will be considered liable for insurance purposes until after the subjugation process is complete. Should I have the claim settled with the other company or use my own?

Asked on August 16, 2012 under Accident Law, Maryland


Micah Longo / The Longo Firm

Answered 8 years ago | Contributor

I’m assuming you are referring to a property damage claim?  If so, you have two options:  


Option 1:  Go through your own insurance company;  Advantage:  Get your car fixed right away, even if at fault.  Disadvantage:  Must pay deductible.  You may be able to recoup the deductible cost from the other insurance company (if not at fault), but this may take some time


Option 2:  Go through the other insurance company.  Advantage:  No deductible  Disadvantage:  Must wait on Insurance company to complete investigation;  could take as long as 30 days.


Really it comes down to how fast you need your car repaired, how large is your deductible, and does does your policy or the other policy provide for a rental car.  These are all things a qualified lawyer can assist you with.

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