Does my insurance company contact me or the other insurance company to initialize the subragation?
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UPDATED: Nov 8, 2011
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Insurance Question from Broussard, LA
Asked on 11/08/2011
Does my insurance company contact me or the other insurance company to initialize the subragation? My insurance company has informed me that they will claim any monies that I receive from the "at fault" insurance company but they have not informed the other insurance company. Is this legal?
Answer given on November 09, 2011
If you are involved in an auto accident that is not your fault, you have two options. The first is to contact the other party’s insurance company and work a settlement with them for your damages and injuries, if any. They will pay first dollar for your damages, and if appropriate they will provide you with a rental car while you car is being repaired. sometimes going this route will delay settlement since the other company is actually representing the other party and will investigate to determine if the accident was solely the fault of their client.Your second option is to go to your insurance company. They will pay for your repairs, less your deductible, plus any injuries up to the policy limit for medical payments. If you have rental coverage on your car, then you will be paid up to that limit for a rental car. After the claim is settled, your insurance company will subrogate against the other insurance company for the money spent to repair your car. If your insurance company is able to collect all funds then your deductible will be reimbursed. If you have obtained payment from the other insurance company, and your insurance company, your insurance company is entitled to be reimbursed for any money they have paid to you. They are not necessarily entitled to money you collect that they have not paid out.
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