What does this letter mean? I'm very confused...help!?

Question

This is a letter I received regarding a car accident I was recently in. What does it mean?

Your claim has been assigned to Paragon Subrogation Services to process your claim thru Inter-Company Arbitration. The Inter-Company Arbitration Forum is where signatory insurance companies go to resolve their liability issues and pursue their subrogation rights for any monies paid out towards your claim. Please be advised that this will include your out of pocket deductible only.

We will be presenting our case to the Arbitration Forum in order to prove liability against the other party and their scheduled carrier. Arbitration Forums decision is binding and final. Your claim has been scheduled to be heard on or about 10/7/08.

Your insurance company will advise you when a decision has been made. In the mean time, should you have any questions please feel free to contact me.

Answer 1

Ah, that's a beautiful piece of legaleze crappola right there.

No wonder people hate lawyers.

When someone else causes an accident, their insurance should pay you.  If they are uninsured or refuse to pay, then your insurance pays for your car repair and usually does not charge you for the deductible.

But, for being so nice and taking care of that, your insurance company wants to make sure that the rat b*****d that hit you pays them back.  Instead of making you sue the guy and then pay them back if you win, the insurance company asks you to allow them to go after the guy for everything, including the amount of your deductible.  This is known as "subrogation" of your right to sue the guy yourself.

This letter says they aren't going to court to sue the guy, but are going to a private arbitration company that both insurance companies use to decide who is at fault.  If they lose there, they won't get to sue because the decision is binding and final.

The question you should call and ask them is what happens if they lose?  Will they want to collect the deductible from you after all?  I'm thinking they will.

Take them up on their offer.  Call them and have them explain anything you don't understand in plain English.

Answer 2

Basically that your insurance company will be stepping into your shoes to recover costs incurred from your accident. They will do this by sitting in front of an Arbitrator, which is an impartial 3rd party (like a judge) that makes decisions without all the whoopla of a real trial.

If you were not at fault in the accident, your insurance company will seek to recover medical bills, costs to repair your vehicle, etc. And they will try and recover your deductible, which will be returned to you.

From the sounds of it, you don't have to do anything, just sit back and let your insurance company do what you pay them for. Call them if you have questions, just like they told you to do. Good luck!

Answer 3

well... since you seem to have a lot of questions  i would suggest you do as they say and contact them  ask if they will explain it to you  i promise they make big bucks from all of us at auto insurance companies  make them earn it !!!!

Answer 4

Subrogation is the process where an insurance company attempts to recover money they have paid out on a claim from the responsible party.

If you were in an accident that was someone else's fault, and your insurer paid money - for example for your car repair or medical bills - they will attempt to recover that money from the person who was at fault. If you paid a deductible, they'll try to get that back for you too.

In this case, it seems the other driver had a different insurance carrier, so instead of going to court against each other the two carriers will sit down in front of an arbitrator and decide which of them pays the other, and how much.

Richard

Answer 5

Get an attorney.  NOW!  Do not go to an arbitration hearing.  You will lose guaranteed.

Arbitration is just a fancy word for you getting screwed.  If you lose - and you will - you have no appeal.  The decision is final.

I never sign an arbitration agreement.  EVER!!