Progressive insurance won't let me use my uninsured motorist coverage that I PAY for?!?!?

Question

The scene: I was driving to work STOPPED at a red light (in my Honda). The car behind me (2005 Toyota) was stopped as well. Junker 1991 Oldsmobile with stupid distracted female doesn't see the STOPPED Toyota behind me and rear ends them nasty style. In turn, the Toyota rear ends my car. Thankfully, the light had JUST turned green so the car in front of me had JUST accelerated enough for me to avoid hitting them and adding to the number of accident victims. There were no injuries at the scene except the shook up idiot Oldsmobile driver. Insurance headaches to come.

A week ago the guilty girl's insurance adjuster calls me and warns me that she may not have enough Collision coverage to cover BOTH my car AND the Toyota's damage, so both of us INNOCENT drivers will most likely have to pay for our deductibles. My UM coverage states that it can cover damages caused to my vehicle in the case where some1 doesn't have ENOUGH insurance to cover it themselves.

Are they trying to s***w me?

Answer 1

Lawnboy and Luna are absolutley correct.  In most states, Uninsured/underinsured covererage only pays for medical claims, not collision damage

Answer 2

The at fault drivers company called and gave you a heads up that there is a potential limits issue.

This is just to let you know that you need to file a claim with your company and put them on notice of a possible UM claim.

However, your UM coverage does not get triggered until the at fault driver's company sends you a written denial of coverage. The UIM (which is sometimes part of UM coverage in some states) does not trigger until the at fault drivers company makes you an the other driver an offer that does not cover all your damage - but exhausts their limits.

In either case - they will send you a letter.

That letter is the trigger for your UM or UIM coverage.

Sounds like you are putting the cart before the horse. It's not a UM or UIM claim yet.  It is a potential UM- UIM claim but not an actual claim yet.

However, if you have collision coverage - your company can settle with you under the collision coverage now.

They will pursue the at fault company for re-payment.

If the UM-UIM coverage ends up getting triggered at a later date - your company will get straight with you for any difference in deductibles between the Um-UIM and Collision.

If you do not have Collision -- all you can do is wait until the at fault drivers company can determine they do not have enough coverage.  In order to do that...the at fault drivers company has to get the appraisals on both of your vehicles. If the estimates to repair the damage to both cars exceeds the amount of available coverage - then they should be able to give you the letter you need to trigger your coverage.

Insurance is different in each state. Which is why you are getting insurance professionals with slightly different answers. In my state - you can purchase Under-Insured Motorist Property Damage Coverage.  

So file the claim with your policy and talk to the adjuster with your company. They will be able to explain what coverage you have that could apply and what is needed to trigger the coverage.

Answer 3

Little confused here, but the person who caused the accident did not have adequate Liability Coverage.   Nothing to do with Collision Coverage.  Collision Coverage would pay for the damage to her vehicle.  

She was not uninsured, just underinsured.   Your Uninsured Motorist Coverage does not kick in because she WAS insured.   FYI - in several states, your UM coverage protects you for Bodily Injury claims, not for the damage to your vehilce.  You need UMPD, not UMBI.

If you have Collision Coverage, I suggest you file a clam againt your own policy.  Your insurance will subrogate and attempt to recover the deductible.

Answer 4

It sounds like you are referring to Uninsured Motorist / Underinsured Motorist Coverage (UM / UIM) which covers bodily injury to you or passengers in your car if the person who hit you doesn't have any or enough bodily injury coverage.

As far as coverage on your vehicle, if the person doesn't have any or not enough "property damage" then you will need to file:

- A Collision claim with your company if you have collision

  coverage.  

- If you don't have collission coverage then you will need to

  file what is referred to as UMPD (uninsured / underinsured

  property damage) if you have this coverage on your policy.

- You can't have UMPD coverage, if you have collision

  coverage.

For additional information you can go to http://www.InsuranceEasy.org click on the "Terms and Definitions" link at the bottom of the page.  Also you can click on the "Useful Links" at the bottom of the page and click on the department of insurance link for your state.  Most of the department of insurance sites offer consumer articles that will help you understand different coverages and how they work.

I know it doesn't seem right to have to file a collision claim with your own company when it's not your fault.  But to be honest if you want your car fixed this is going to be the quickest way.  

By filing a claim with your company they will go after the woman who hit you and try to collect damages from her including recovering your deductible.

If you try to do it yourself to be honest you will end up paying more for legal defense then you would of had to pay by paying the deductible.

Answer 5

In some states there are two kinds of uninsured motorist coverage and neither one of them would come into play here.

Uninsured Motorist Bodily Injury (UMBI) covers ONLY injuries you suffer from an uninsured driver.

Uninsured Motorist Property Damage (UMPD) which only covers vehicle damages caused by an uninsured driver.

Obviously, I haven't seen your policy but I doubt either of the  above UM coverages state they will come into effect if the at-fault party doesn't have enough coverage. (UNDERinsured coverage would do that but it doesn't apply to vehicle damages.      

The problem you have is that the at-fault party is NOT uninsured they are UNDER-INSURED and I am not aware of any Underinsured Motorist Property Damage coverage.

Now here is the best way to handle this.

Just collect from your own collision coverage but ask the at-fault company to pay your full deductible up front (they should do the same for the car behind you). They should also pay for a rental car for you and the car behind you.

Then you aren't out any money. Your insurance will be the one to take the loss since they will get a pro-rated portion of the damages they pay you back from the at-fault company. However,  I assume your insurance company can take the loss and it won't bankrupt them.        

Talk to your company's adjuster about this solution.

Good Luck