CTR in accident (not my fault) ... questions for experts

ToofHurts said:

4 weeks ago I was involved in an accident on the NJ turnpike. 3 cars were involved with me being the last one to get hit. I was rear ended (at slow speed) with roughly $2500 worth of damage (mostly cosmetic. Car drives perfectly). The at fault driver totaled his car, car #2, caused damage to the guard rail, and my damage. He ONLY ($%##$) has $5000 limit for property damage.

His insurance is saying since he only has $5000 property damage coverage - all claims will be prorated and divided from the $5000. Basically I get like $500 - seeing he totaled a car and needs to pay for new guard rail! And I really can't file "diminished value" either since he will have no coverage left!

My insurance company highly recommends I just proceed with repair on my policy (I do have a $500 deducible) and they will "sue" him / his insurance company for the cost. Of course - my rates will increase.

What should I do? Advice please.

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Your rates cannot increase if you were not at fault.
If his insurance only pays out enough to cover your deductible, then you are in a good position.
Find the BEST repair facility; as price does not matter.
It’s an impossible venture to sue for “diminished value”. In the legal realm, the vehicle is repaired.
If perhaps there were physical injuries to yourself, then that is entirely different. However, that does not appear to be the case.

kevv_FK8 said:

I have a $500 deductible and pay more for it....I think I am going to call and raise that...I have never been in an accident *knock on wood* and feel like I am just pissing the money away.

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Just make sure you will have the higher deductible on hand in the event of an accident.

Hollywoo0220 said:

Your rates cannot increase if you were not at fault.

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The laws may vary by state, but I was burned by a non at fault claim through my insurance company several years ago.

360glitch said:

The laws may vary by state, but I was burned by a non at fault claim through my insurance company several years ago.

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Oh man!
I suppose that subject area is vague?
I have been with USAA for quite some time and fortunately never been in an at fault situation.
Perhaps the more reputable Insurance brands are not as vindictive? Maybe that's the one variable that makes a difference...

I think it is the Insurance Agency's discretion to raise insurance premiums for fault/non-fault events. AAA for me YEARS ago in CA, found me not at fault for a situation where the police's collision report found me at fault, thus not raising my parent's premium. They, uh, really didn't want me on the insurance after I moved out of my parent's house though. Portland, OR where I was rear-ended, it was a non-fault state at the time (still is?) and my insurance went up because of the collision while I was with Geico.

It comes down to having a good insurance agency and a good relationship with that agency. I'm sure that city/state laws have some weight as well.

kevv_FK8 said:

I have a $500 deductible and pay more for it....I think I am going to call and raise that...I have never been in an accident *knock on wood* and feel like I am just pissing the money away.

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Crank it buddy your monthly will drop SIGNIFICANTLY and not like you're going to claim a 600-1000 dollar anything on the car, so why not There is a max though most places it's around $1500-2000

Thanks for the feedback. I was just shocked that an insured driver can purchase only $5000 for damage! My policy has me covered for $100,000. And I thought I had a basic policy! ha.

Whatever. It is what it is.

I had a somewhat similar experience years ago. 3 car accident, I was last hit, the at fault drivers insurance was giving me the run around (it was some no-name auto insurance). I wanted genuine Acura parts (this was on an ITR) and they are dragging their asses. I called my insurance, gave them the story, they said file a claim with us, pay deductible, get it fixed wherever you want, and then they will sue the at-fault driver's insurance company , and then pay back the deductible when they collect from them.

Got the car fixed perfect. Sure enough about 6 mo later, I got a check from my insurance for the deductible amount, and of course no rate increase.

I suspect there is a line in the sand somewhere through, if you are in say 20 "not at fault" accidents in 2 years , at some point you must be doing something/going somewhere that is causing this risk LOL.

ToofHurts said:

Thanks for the feedback. I was just shocked that an insured driver can purchase only $5000 for damage! My policy has me covered for $100,000. And I thought I had a basic policy! ha.

Whatever. It is what it is.

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I’m surprised that state law would allow that as well.

That is mental to me that someone can carry $5,000 property damage liability.

I had a similar situation happen to me a long time ago. I was the third car out of four car wreck caused by a single at-fault driver (determined by local PD). Mine was one of two cars totaled ('13 Civic Si RIP). When I filed a claim with their insurance, they gave me the runaround for a couple of weeks but eventually told me that the driver's coverage was not enough to repair all cars. They told me my only recourse was to file a claim with my own insurance. I obviously had no choice since my car was totaled, but I definitely was concerned that I was going to have to eat the deductible and have my rates go up. My situation differs here from yours though because dealing with my own insurance ended up being a breeze. I guess because I wasn't at fault, I didn't have to pay the deductible nor did I see my rates go up after it was all said and done. They explained to me that they would end up suing the driver (and/or their insurance company? can't remember exactly) to cover the costs I generated.

Did your insurance actually tell you that your rates would go up because of this? If so, I'd maybe consider shopping around for a new insurance company. Also, the specifics are probably state and insurance company specific but I'd also look into uninsured/under-insured motorist coverage, especially since you're somewhere where the minimum coverage is $5,000.

EDIT: I just googled NJ's insurance minimums and sure enough, you can carry a minimum of $5,000 for property damage liability which is crazyyy. I'm not sure if this will help but here's a page straight from the State of New Jersey speaking to uninsured/underinsured motorist claims: https://www.state.nj.us/dobi/ins_ombudsman/wysk3.htm#1

What is wrong with NJ that they allow drivers to basically drive uninsured?

FifStreet said:

What is wrong with NJ that they allow drivers to basically drive uninsured?

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All they care about is your monthly payments. Last Tuesday my Type R (which was parked) got hit. Once I got the police report I noticed we had the same insurance provider so I thought this would be easy. The load of crap they are currently telling me is they haven't been able to file a claim because they haven't been able to get in contact with the person that hit my parked car. So since they can't get in contact with him I have to wait patiently or pay my deductible and get it fixed threw my policy.

ToofHurts said:

Yeah. Can't decide if I should cover repair on my dime ... or through my insurance. Of course I have fear a huge increase in premium with a claim. And the increase will likely cost me $2500 so I'm basically paying for repair now or later. haha.

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So your insurance pay for your car. And then charge you for that repair via a rate increase? Have them pay and change insurance companies.

so, I'm kinda of missing the point that a rear bumper repair costs $2500 ...I backed up into a parking pole one night and cracked my bumper, I ordered a brand new one through my dealer for $300 and had it color matched and painted for $200 . I saved money by not going through my insurance #1 and by doing my due diligence in finding part numbers and doing all the leg work myself #2 and I also installed the bumper with my own two hands #3. Not to sound like an ass but it seems like you are looking for the lazy way out which usually costs money either now or later, barring that if you file a claim with your insurance once they fix it and you get it back, cancel your policy and get insurance through someone else

$200 sounds cheap for a professional paint job. Was the shop inside a garage and they used spray cans?