Car accidents. They're scary, but you learn fun new things!
June 5, 2015 8:47 PM Subscribe
How does my car insurance company work out my claim when the other party is a member of the same insurance company?
I was in my first ever car accident this evening after 15 years of driving. Still a little shaken up, but I drive enough that I figure it was bound to happen eventually.
Basic facts of the situation: I was pulling up to a light when someone pulled out from a parking lot on my right side in front of my car. Pretty low speed. No injuries. Damage to both bumpers but not totaled or anything like that.
I wasn't mad (he was just a kid with one of those vertical licenses, so I felt more sorry for him than anything) and we tried to handle things professionally. I called my insurance. Gave them the other person's insurance info and he took down mine. And I noticed that our insurance companies were the same (Esurance). How do they work out payments and so on in those situations? Normally I would think my insurance company would advocate on my behalf to make sure repairs are covered, but if they're not talking to another insurance company then who are they negotiating with? Am I going to get screwed because they want to pay the least possible amount on the other driver's behalf? Or will things be easier and get settled with less fuss because it's all in-house?
I was in my first ever car accident this evening after 15 years of driving. Still a little shaken up, but I drive enough that I figure it was bound to happen eventually.
Basic facts of the situation: I was pulling up to a light when someone pulled out from a parking lot on my right side in front of my car. Pretty low speed. No injuries. Damage to both bumpers but not totaled or anything like that.
I wasn't mad (he was just a kid with one of those vertical licenses, so I felt more sorry for him than anything) and we tried to handle things professionally. I called my insurance. Gave them the other person's insurance info and he took down mine. And I noticed that our insurance companies were the same (Esurance). How do they work out payments and so on in those situations? Normally I would think my insurance company would advocate on my behalf to make sure repairs are covered, but if they're not talking to another insurance company then who are they negotiating with? Am I going to get screwed because they want to pay the least possible amount on the other driver's behalf? Or will things be easier and get settled with less fuss because it's all in-house?
Best answer: Hello, professional car insurance adjuster here.
It depends on the insurance company. It also depends on what the circumstances are. The major point to keep in mind is that when both parties are insured by the same company, the number one priority is avoiding a conflict of interest. For that reason, each party will have their own separate claim under their own policy, with their own adjuster assigned.
For example: Joe Smith gets in a car accident with Mickey Mouse. They are both insured by Total Loss Insurance Company.
I am Joe Smith's adjuster. Even though I work at the same company that Mickey Mouse's adjuster works at, and we share the same computer system, I am not allowed to look at the claim that's been set up under Mickey Mouse's policy. The same goes for the other adjuster, who is not allowed to access/view the claim that has been set up under Joe Smith's policy. (At my employer, it's a fireable offense; we now have it set up so that our computer system blocks us from accidentally or intentionally pulling up the other party's claim.) In other words, we handle it as if it were two separate insurance companies.
If there is a dispute between myself and the other adjuster about who is at fault, we try to work it out through discussion. If we're not able to work it out, our respective supervisors will try to resolve it (similar to how I can't access the other party's claim, I'm also not allowed to be working under the same supervisor as the other adjuster). If that doesn't work, we both present our cases to a panel of supervisors (again, who are neither my supervisor nor the other adjuster's supervisor).
Payments are easier in this situation. Let's say that Mickey Mouse tells his adjuster that Joe Smith hit him and caused the accident. But Joe Smith says no, Mickey Mouse hit me, and there's a police report with an eye witness to prove it. The police report won't be ready for another week. Joe Smith can't wait to get his repairs done, so he goes ahead and uses his Collision coverage (which carries a $500 deductible) to repair his car. A week later, I get a copy of the police report and call the witness. The witness confirms that Mickey Mouse was at fault for the accident. I speak with Mickey Mouse's claims adjuster, who has also reviewed the police report and spoken with the witness, and we agree that Mickey Mouse was at fault. The other adjuster calls Joe Smith and says "Hey, sorry that took so long, but we finally obtained the evidence that shows you're not at fault. I'm going to send you a check for that $500 deductible you had to pay, and your adjuster is going to transfer the payments for the rest of your vehicle damages (let's say, $1500) to Mickey Mouse's policy. Since we're transferring the payment for your car damages over to Mickey Mouse's policy, it will no longer show up that a $1500 payment was made under your policy."
Again, this can vary by insurance company, but the general principles are the same.
To answer your question, "Is it easier?" Usually, yes. It depends on the issue. When it comes to payments, I'd say it makes it easier for everyone involved.
If you have additional or more specific questions about any of this, feel free to MeMail me.
posted by nightrecordings at 5:30 AM on June 6, 2015 [14 favorites]
It depends on the insurance company. It also depends on what the circumstances are. The major point to keep in mind is that when both parties are insured by the same company, the number one priority is avoiding a conflict of interest. For that reason, each party will have their own separate claim under their own policy, with their own adjuster assigned.
For example: Joe Smith gets in a car accident with Mickey Mouse. They are both insured by Total Loss Insurance Company.
I am Joe Smith's adjuster. Even though I work at the same company that Mickey Mouse's adjuster works at, and we share the same computer system, I am not allowed to look at the claim that's been set up under Mickey Mouse's policy. The same goes for the other adjuster, who is not allowed to access/view the claim that has been set up under Joe Smith's policy. (At my employer, it's a fireable offense; we now have it set up so that our computer system blocks us from accidentally or intentionally pulling up the other party's claim.) In other words, we handle it as if it were two separate insurance companies.
If there is a dispute between myself and the other adjuster about who is at fault, we try to work it out through discussion. If we're not able to work it out, our respective supervisors will try to resolve it (similar to how I can't access the other party's claim, I'm also not allowed to be working under the same supervisor as the other adjuster). If that doesn't work, we both present our cases to a panel of supervisors (again, who are neither my supervisor nor the other adjuster's supervisor).
Payments are easier in this situation. Let's say that Mickey Mouse tells his adjuster that Joe Smith hit him and caused the accident. But Joe Smith says no, Mickey Mouse hit me, and there's a police report with an eye witness to prove it. The police report won't be ready for another week. Joe Smith can't wait to get his repairs done, so he goes ahead and uses his Collision coverage (which carries a $500 deductible) to repair his car. A week later, I get a copy of the police report and call the witness. The witness confirms that Mickey Mouse was at fault for the accident. I speak with Mickey Mouse's claims adjuster, who has also reviewed the police report and spoken with the witness, and we agree that Mickey Mouse was at fault. The other adjuster calls Joe Smith and says "Hey, sorry that took so long, but we finally obtained the evidence that shows you're not at fault. I'm going to send you a check for that $500 deductible you had to pay, and your adjuster is going to transfer the payments for the rest of your vehicle damages (let's say, $1500) to Mickey Mouse's policy. Since we're transferring the payment for your car damages over to Mickey Mouse's policy, it will no longer show up that a $1500 payment was made under your policy."
Again, this can vary by insurance company, but the general principles are the same.
To answer your question, "Is it easier?" Usually, yes. It depends on the issue. When it comes to payments, I'd say it makes it easier for everyone involved.
If you have additional or more specific questions about any of this, feel free to MeMail me.
posted by nightrecordings at 5:30 AM on June 6, 2015 [14 favorites]
This thread is closed to new comments.
posted by exutima at 9:05 PM on June 5, 2015 [1 favorite]