Auto insurance did not cover the cost of repairs, what do I do?

Question

Two months ago I was rear-ended while stopped at a stop light. The other involved was at fault (obviously) so when I filed a claim I went through his insurance company because I did not want to come up with my $500 deductable to go through my ins. company. Everything was working fine. The extent of the damages to my car was $10,575. I got my car back, but now I find out that his insurance company only covered $10,000 of the cost and the remaining $575 the repair shop is going to sue me for.

Can they sue me, or should they sue the other involved? If they can sue me can I go through my insurance company to have them pay the $575 to the repair company and they then sue the other involved for what they/I am out?

Answer 1

You should have filed with your own insurance company.  If the other person was at fault, their insurance company pays the deductible.

Answer 2

fighting saints is very right. Listen to him.

Answer 3

Try submitting the claim to your own insurance company as well.  Let them fight the other guy's insurance company, that's what you pay them for.  Since the accident was not your fault, they should not raise your rates.

Answer 4

Fighting is correct in his advice.  My two cents, call your insurance company, they pay reimburse the auto body the $575 directly.  If you had gone through your own insurance company, they would have paid out $10,075.  After they paid you they would have then subrogated for the full amount including your deductible.  Most insurance companies give back the entire deductible even if they do not collect the entire amount.

Answer 5

What explanation did they give for not covering the full cost of your repairs?  That would be the starting place.  What does your agent say?  He would be the best source of information for you.  

The other owner involved and/or his insurance company didn't take your car in to be fixed, you did.  The shop that did repairs deserves to be paid.  So you are responsible for paying them, and if you don't, they can sue you for the balance.

I'd suggest you pay it, and then see if you can recover it from the at fault insurance company.  If not you always have the option to take the vehicle owner to small claims court.

Answer 6

Typically the repair shop works directly with the insurance carrier to cover the actual costs of the repair.

Why is there a $575 difference suddenly coming up when the car is done?

You should not have to sue or pay anything.

Answer 7

You have an ugly little mess here without any great options.

The other driver had extremely low policy limits of 10K, so that is all they have to pay, no matter what.

Legally, you owe the shop for the repairs. You own the car, therefore it's your responsibility to pay them the balance.

The shop can only sue you for the balance. They would have no legal standing to go after the other driver or their insurance co.

If the other company had you sign a "release" form then you have no right to go after the other driver. If you didn't sign a release then you can sue them for the balance but even if you win, it's not a guarantee of getting paid. I don't know of any small claims court that helps the winner collect their money.

You can check with them, but It's probably too late to collect anything from your company.

The at-fault company should have told you that they had horribly low limits and they should have offered to pay your deductible up front and have you collect from your own company. That way when your company goes to collect reimbursement from the at-fault company, your company takes the $575 loss.

I suggest that you talk to your company, if they can't help you, tell the shop you will pay the $575 in monthly payments and see if they can live with that.

Good Luck