I was involved in an auto accident, not my fault. Insurance company isn’t paying all of my rental car. Who do I go after?

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I was involved in an auto accident, not my fault. Insurance company isn’t paying all of my rental car. Who do I go after?

I was involved in an auto accident. I drive an expensive luxury car. I am a full-time real estate broker, and I use my car for business purposes. The other carrier accepted liability and has been paying the claim. However they only want to reimburse a portion of my rental vehicle, claiming the difference is “excessive”. I must have comparable transportation to operate my business. The other driver has a $30/day coverage for rental, but I am not their insured, so only their $100,000 CSL policy limit applies to me, correct? What do I do? I’ve filed a complaint with Dept. of Ins, but who do I sue?

Asked on March 26, 2009 under Insurance Law, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

As you are involved with a 3rd party claim -- a claim against the other driver's insurance company -- it is always a bit of a negotiation.  The other driver's company only owes you what their driver would have to pay, and it's not always clear that the cost of a luxury car would be due and owing.

It's often better to deal with your own insurance company under the collision portion of your own policy (assuming you have collision). Your company owes you a duty of good faith, but even it may have a limit per day for rental reimbursement unless you bought a special rider. While you'd have to bear a deductible, when your carrier goes after the other driver's company in an inter-company meeting, you'd usually get it back in full or in large part, and often save a lot of hassle.

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You can sue the driver who caused the damage, perhaps even in the local small claims court.

However, when you agree to have the other driver's company repair your car they may make you explicitly or implicitly agree that you will limit the daily amount of recovery for rental car expense from them, or you may inadvertently sign a release that waives all other claims if you are not careful.

If your carrier is paying for the car, it will take a subrogation claim against the other driver and thus it may have to give you permission to sue, as it takes your right to sue for the amounts it pays out.

If there is any personal injury, see a lawyer in your area.

 

 


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