Insurance company screw up.

[LotoSteve]

I will try and make this short. A year ago my daughter was rear ended while driving my car. The other driver didn't have insurance. She went to the hospital with head and neck pain. They did some test and released her and she is fine. The bill for the test was $6000 which my insurance company paid $5000 of it. Last week she found a letter from my insurance company that was sent roughly a year ago offering to settle the rest of the claim for 2k. So she calls the claim rep and agrees to settle for the $2000. Today she gets the check only it is for $7000. The 5k that was already paid to the hospital and the 2k settlement. The moral issue aside, sooner or later this error will be caught and they will want the money back. Correct?

[Expensive Date]

Doubt they will catch it.If they do the worst thing that will happen is you have to pay it back.Cash the check and put it in the bank for a year see what happens.

[Birdog]

Is that really what you want to teach your daughter ?

[MacGyver]

I'd call the insurance company and set things straight.

[CRC]

Cash the check, delete this thread................

[JupiterSunsation]

cash the check, delete this thread................

+1.......

[Chris]

It's been many years, but I was hospitalized after an auto accident. The insurance company included the cost of my medical care in their settlement. This was done between their attorney and mine. It was common practice then- and I assume it's the same now. My health care coverage at the time paid my medical bills. If I recall, insurance companies are able to come back to you to recover those monies. I believe it's called subrogation. I believe they typically don't.

[Trim'd Up]

Cash the check, delete this thread................

+2 They screw you every time they get the chance.

[Knot 4 Me]

It's been many years, but I was hospitalized after an auto accident. The insurance company included the cost of my medical care in their settlement. This was done between their attorney and mine. It was common practice then- and I assume it's the same now. My health care coverage at the time paid my medical bills. If I recall, insurance companies are able to come back to you to recover those monies. I believe it's called subrogation. I believe they typically don't.Yes, when an insurance company goes after another party to recoup monies it has paid out on a claim it is called subrogation. If you have been injured in an auto accident, depending on fault either your auto insurance or the other party's auto insurance should pay the medical bills up to the policy limit. If the bills are submitted and paid by an individual's health insurance in an auto accident, the individual's health insurance provider can subrogate against the auto insurance provider to recoup the funds.

[Knot 4 Me]

Cash the check, delete this thread................Morals aside, bad idea. Notify the insurance company of what you perceive is an overpayment on their part. If they state the payment is accurate, then you cash the check.

[LotoSteve]

I just spoke with a close friend who handles liability claims (slip & fall type stuff for businesses). He said Missouri has what is called Med-pay along with Uninsured motorist and the 2 are sort of separate policies. He said its not uncommon for both to pay out for medical expenses however the amount stated on the release form she signed is really what matters. He also said if there is a mistake it will probably never be caught because they don't hire enough people to audit claims. As much as I hate (read the fine print, your not covered) insurance companies the right thing to do is for her to call the adjuster and see if in fact there is a mistake. I guess I raised her right because she called me this morning and said she was going to do just that. I will let you guys know how it turns out.

This is also one of those situations where I want her to do the right thing even though if it was me, I would probably cash the check and call it justice for all the claims they deny for bs fine print reasons.

[Wobble]

First, I agree with KNOT4ME.


I am in the middle of an insurance cock-up also. One of my employees was rear ended in a thrifty van in Ohio. Other guy ticketed, open/shut case, right?

The bill was about 6k for damage. The offender mailed a check to thrifty for 4k, on the check he wrote something like "if you cash this check you agree that this is full and final payment" Thrifty's lock box service cashed the check, now thrifty is coming after my insurance for the money.

My insurance has advised me to pay. I have told them that if I pay one penny we will go after the guy in small claims court for the 2K plus expenses.

What do you guys/gals think?

[Chris]

You should be proud that you raised her well. Charachter is alot like virginity. You can only lose it once.

[LotoSteve]

First, I agree with KNOT4ME.


I am in the middle of an insurance cock-up also. One of my employees was rear ended in a thrifty van in Ohio. Other guy ticketed, open/shut case, right?

The bill was about 6k for damage. The offender mailed a check to thrifty for 4k, on the check he wrote something like "if you cash this check you agree that this is full and final payment" Thrifty's lock box service cashed the check, now thrifty is coming after my insurance for the money.

My insurance has advised me to pay. I have told them that if I pay one penny we will go after the guy in small claims court for the 2K plus expenses.

What do you guys/gals think?

Sounds like the offender writes insurance policies. :rolleyes:

[sledge]

The bill was about 6k for damage. The offender mailed a check to thrifty for 4k, on the check he wrote something like "if you cash this check you agree that this is full and final payment" Thrifty's lock box service cashed the check, now thrifty is coming after my insurance for the money.

My insurance has advised me to pay. I have told them that if I pay one penny we will go after the guy in small claims court for the 2K plus expenses.

What do you guys/gals think?

Tell Thrifty's Risk Mgmt department they should be complaining to their Treasury Dept who should be b!tching at their lockbox bank for processing a check with extra language on it. It's Treasury's responsibility to make sure crap like that doesn't happen. It should've been held out as an exception item and sent to Thrifty's treasury folks.

Tell your ins co you'll fire them if they pay and put it in your file, and tell Thrifty you'll sue them to high hell for trying to collect on a claim that's been paid in full (as evidenced by them cashing the check :D).

Thrifty can still send the guy his money back and threaten legal action for full amount.

[Wobble]

Tell Thrifty's Risk Mgmt department they should be complaining to their Treasury Dept who should be b!tching at their lockbox bank for processing a check with extra language on it. It's Treasury's responsibility to make sure crap like that doesn't happen. It should've been held out as an exception item and sent to Thrifty's treasury folks.

Tell your ins co you'll fire them if they pay and put it in your file, and tell Thrifty you'll sue them to high hell for trying to collect on a claim that's been paid in full (as evidenced by them cashing the check :D).

Thrifty can still send the guy his money back and threaten legal action for full amount.

Funny enough I just heard from my insurance.

It seems that regardless of fault, as renter we are liable for the damage under Thrifty contract unless we paid for their insurance cover.

I will send a check to my insurance which will cover my deductible on condition that they ( CNA ) go after the perpetrator for the money.

They say they will, so we shall see.

Either way it counts as a loss against my policy and that sucks.

[MarylandMark]

I have told them that if I pay one penny we will go after the guy in small claims court for the 2K plus expenses.


I thought you can't recoup legal expenses in cases like this? IDK- just didn't think you could.

[Wobble]

I thought you can't recoup legal expenses in cases like this? IDK- just didn't think you could.

Dont know which expenses can be recouped in small claims. I think there would be a good chance of getting travel/accommodation costs.

Looks like it wont come to that though.

[Big Time]

It seems that regardless of fault, as renter we are liable for the damage under Thrifty contract unless we paid for their insurance cover.



I was always told that it is a waste of $$ to do that...maybe not? So if you had the insurance provided by Thrifty, then it would not have counted towards your own insurance record?

On a side note my buddy is being sued by a guy that he played a pick up game of basketball with because there was contact, the other guy fell and broke his wrist, now he wants my buddy to pay for the medical expenses?!?!? Phuking a$$hole (This thread made me think of that).

[mustang]

First, I agree with KNOT4ME.


I am in the middle of an insurance cock-up also. One of my employees was rear ended in a thrifty van in Ohio. Other guy ticketed, open/shut case, right?

The bill was about 6k for damage. The offender mailed a check to thrifty for 4k, on the check he wrote something like "if you cash this check you agree that this is full and final payment" Thrifty's lock box service cashed the check, now thrifty is coming after my insurance for the money.

My insurance has advised me to pay. I have told them that if I pay one penny we will go after the guy in small claims court for the 2K plus expenses.

What do you guys/gals think?

I'll preface by saying I've been employed as a claims adjuster in Illinois for 14 years handling auto, liability and property claims and here is my free opinion on your situation without knowing all of the facts. You are dealing with 2 separate issues here; Legal liability and contractual liability.

1) Legal liability: The Thrifty vehicle was rear ended by another driver while being operated by your employee. The other driver would be guilty of the tort of negligence; and in the absence of any contributory negligence on the part of your driver, the other driver would be responsible to pay for the property damage to Thrifty's vehicle and any medical expenses, wage loss or pain and suffering to your employee from accident related injuries. The other driver did not have insurance and dealt directly with Thrifty on the property damages. We do not know why the other driver only wrote a check for $4K but he included release language on the check. By Thrifty cashing that check I believe it is sufficient to stand as a release against the other driver for any further property damages. What that means is he is now released from any further liability for property damages from that accident and I do not think you could legally pursue him for repayment of the additional $2K Thrifty is looking for; if you do pay Thrifty any additional funds. You may be successful in convincing a judge that you are now the injured party and not Thrifty; but I doubt it.

2) Contractual Liability: Assuming you did not purchase any insurance/damage waivers from Thrifty when you rented the vehicle, you signed a contract when you rented the vehicle indicating that your personal insurance coverage would be primary to cover any damage that would occur to the rental vehicle while it was in your possession. Thrifty is now saying that you are contractually obligated to pay for the damages which total $6K. They received $4K and now they want $2K from you.

I honestly don't know why your insurance company would tell you to pay this but again....I don't know all of the facts. If this were covered by your insurance policy you would only be responsible for the collision deductible amount. I would tell Thrifty that they concluded the property damage claim directly with the tortfeasor(negligent party) and their cashing of the check which included the release language not only concluded the property damage claim IN ITS ENTIRETY but also predjudiced your rights to pursue repayment from the tortfeasor because he has now been released. See what they say. Worst case scenario....try and negotiate the amount they allege that you owe and get a copy of the damage estimate if you have not yet been provided one.

I hope this helps and good luck with your situation.

[Wobble]

I'll preface by saying I've been employed as a claims adjuster in Illinois for 14 years handling auto, liability and property claims and here is my free opinion on your situation without knowing all of the facts. You are dealing with 2 separate issues here; Legal liability and contractual liability.

1) Legal liability: The Thrifty vehicle was rear ended by another driver while being operated by your employee. The other driver would be guilty of the tort of negligence; and in the absence of any contributory negligence on the part of your driver, the other driver would be responsible to pay for the property damage to Thrifty's vehicle and any medical expenses, wage loss or pain and suffering to your employee from accident related injuries. The other driver did not have insurance and dealt directly with Thrifty on the property damages. We do not know why the other driver only wrote a check for $4K but he included release language on the check. By Thrifty cashing that check I believe it is sufficient to stand as a release against the other driver for any further property damages. What that means is he is now released from any further liability for property damages from that accident and I do not think you could legally pursue him for repayment of the additional $2K Thrifty is looking for; if you do pay Thrifty any additional funds. You may be successful in convincing a judge that you are now the injured party and not Thrifty; but I doubt it.

2) Contractual Liability: Assuming you did not purchase any insurance/damage waivers from Thrifty when you rented the vehicle, you signed a contract when you rented the vehicle indicating that your personal insurance coverage would be primary to cover any damage that would occur to the rental vehicle while it was in your possession. Thrifty is now saying that you are contractually obligated to pay for the damages which total $6K. They received $4K and now they want $2K from you.

I honestly don't know why your insurance company would tell you to pay this but again....I don't know all of the facts. If this were covered by your insurance policy you would only be responsible for the collision deductible amount. I would tell Thrifty that they concluded the property damage claim directly with the tortfeasor(negligent party) and their cashing of the check which included the release language not only concluded the property damage claim IN ITS ENTIRETY but also predjudiced your rights to pursue repayment from the tortfeasor because he has now been released. See what they say. Worst case scenario....try and negotiate the amount they allege that you owe and get a copy of the damage estimate if you have not yet been provided one.

I hope this helps and good luck with your situation.

Mustang, Thank you for taking the time to explain the ramifications.

We have a fairly high deductible on our commercial auto policy. However since my earlier post I have made a few more calls and negotiated them down to collecting $250.00 from me against the deductible.

Regardless it will show as a loss against the policy and that is never good.

I have instituted a policy of purchasing all insurance/waivers on auto rentals. We recharge all job related travel expense to our customers and this will be a relatively small amount compared to the possible headaches.

[mustang]

Wobble,

It will show as a loss but it is a loss that did not result from any negligence on the part of your employees so it would be considered "non-chargeable". That actually does make a difference when your policy comes up for renewal. The insurance carrier usually does not put a lot of weight on non-chargeable claims. Glad things worked out for ya!

[MarylandMark]

Glad things worked out Wobble!

Mustang- thank you for your time and post!

[LotoSteve]

Update:

My daughter talked to the adjuster and there was no mistake. She gets to keep the 7k.

[Wobble]

Update:

My daughter talked to the adjuster and there was no mistake. She gets to keep the 7k.

honesty is the best policy, congratulations on raising a good kid:cheers2:

[HiZ]

Keep the 2 and invest the 5!

[CRC]

Glad to hear that it worked out. My suggestion to cash the check and don't look back was because I got screwed over bad by Progressive on a claim a while back and Farmers dropped my house because it needs to be painted. I dropped Progressive for better rates with State Farm and dropped Farmers on my second home for better rates also.