Time limit for ins. co. to settle a claim?

[bernorange 8359]

A few weeks ago, my son was leaving for the gym.  He pulled his car out of the driveway and the neighbor across the street pulled out of his driveway right after and hit my son's car causing some minor damage to the passenger side rear wheel area.  Neighbor apologized, admitted fault and gave his ins. co. info (State Farm).  We had our ins. co. file a claim with State Farm.  A few days later, we got a letter from State Farm acknowledging the claim and stating that they would investigate the claim.  A few days later, a State farm agent called my son and requested photos of the damage to his car, which my son then provided.  We haven't heard didily squat from State Farm since then.

I suppose we could just get the car fixed and then send the bill to State Farm, but I suspect we'd then be fighting an uphill battle to get them to pay it.  What options do we have to expedite the settling of our claim?

[Dahobbs 17522]

23 minutes ago, bernorange said:

A few weeks ago, my son was leaving for the gym.  He pulled his car out of the driveway and the neighbor across the street pulled out of his driveway right after and hit my son's car causing some minor damage to the passenger side rear wheel area.  Neighbor apologized, admitted fault and gave his ins. co. info (State Farm).  We had our ins. co. file a claim with State Farm.  A few days later, we got a letter from State Farm acknowledging the claim and stating that they would investigate the claim.  A few days later, a State farm agent called my son and requested photos of the damage to his car, which my son then provided.  We haven't heard didily squat from State Farm since then.

I suppose we could just get the car fixed and then send the bill to State Farm, but I suspect we'd then be fighting an uphill battle to get them to pay it.  What options do we have to expedite the settling of our claim?

Third party insurance, so your only real deadline is the statute of limitations for filing a cause of action. In Texas for a typical PI case that would be two years from the date of incident. State Farm is under no real obligation to do anything to resolve the claim until your son files suit against the neighbor. Now, typically for small claims with uncontested liability a third-party insurer will make some effort to resolve short of litigation. But again, they are under no pressure to pay and generally will delay paying as long as possible. 

Your choices to expedite are generally:

(1) Be really really annoying so that it is no longer worth State Farm's time to hold off on paying. Most effective for very small claims. 

(2) File claim with son's insurance and have it pay for repairs. His insurance will then be incentivized to put pressure on State Farm to get repaid. As part of that, it is supposed to also refund any deductible (although there may be some states where the law/policies are different). This doesn't work if his insurance is also State Farm. 

(3) File a lawsuit against neighbor.

So long as there is no personal injury element to this, I believe either (1) or (2) will eventually get the job done. (2) gets him his car repaired sooner, but at the cost of having to pay the deductible upfront and waiting for a refund at a later time. The math on (3) gets complicated if he has to hire an attorney. With a PI element, the attorney can leverage that to make it worthwhile for everyone. Without a PI element many firms will not even take the case and even if they do, it will often end up with the claimant getting less money in pocket than with (1) or (2). 

[NeverMarryAStripper 21867]

I would just annoy the neighbor constantly so he gets his insurance to pay up.  You know, stuff like shit in his yard every night and leave a note saying this shit is for State Farm

[Texas St. Armadillos 1381]

Fuck his wife.

[conVINCEd 21469]

Take car to a body shop of your choosing.  Give them all of the claim info.  Let them deal with the claims adjuster.  They do it every day and are better at it than you are.

[Dahobbs 17522]

8 hours ago, conVINCEd said:

Take car to a body shop of your choosing.  Give them all of the claim info.  Let them deal with the claims adjuster.  They do it every day and are better at it than you are.

That works when it is your insurance company, you can assign a claim to the body shop, and the dispute is just about how much to pay. This is third party.  I don't think body shops are going to do that work without getting paid upfront. But maybe I'm wrong, I don't do much in the way of small property claims. 

[conVINCEd 21469]

5 minutes ago, Dahobbs said:

That works when it is your insurance company, you can assign a claim to the body shop, and the dispute is just about how much to pay. This is third party.  I don't think body shops are going to do that work without getting paid upfront. But maybe I'm wrong, I don't do much in the way of small property claims. 

It’s unclear if he’s gotten an estimate.  Get the process started.  The insurance company isn’t gonna pay anything until they know what they’re supposed to pay.  And wanting a cash payment upfront is a bad idea because additional damage could be found once they get in there.  It’s on the other guy’s dime, just take it to the dealer of whatever make it is and let the them take care of it. 

[Dahobbs 17522]

3 hours ago, conVINCEd said:

It’s unclear if he’s gotten an estimate.  Get the process started.  The insurance company isn’t gonna pay anything until they know what they’re supposed to pay.  And wanting a cash payment upfront is a bad idea because additional damage could be found once they get in there.  It’s on the other guy’s dime, just take it to the dealer of whatever make it is and let the them take care of it. 

I think we are talking past each other. Yes, he will at least need an estimate. But you were suggesting having the body shop handle the insurance claim. I'm saying that for third party, I don't think they are going to do that. This isn't just a fight with an adjuster over the cost repair. Neighbor's insurance has no real obligation to process the claim or pay him at all. Its obligation is only to its insured, the neighbor. When I said payment upfront, I meant his son paying for repairs in the normal course after having them done and then separately dealing with insurance. I didn't mean just pay the body shop prior to the work being done. 

 

[Nice Guy Eddie 13507]

Why not just call State Farm. Ask them for an update. It will probably cost you 15-20 minutes. Or better yet, have your son call to help teach him how the world works. Just tell him to not agree to anything and/or he can connect you to the call once their claims agent answers. 

[conVINCEd 21469]

6 hours ago, Dahobbs said:

I think we are talking past each other. Yes, he will at least need an estimate. But you were suggesting having the body shop handle the insurance claim. I'm saying that for third party, I don't think they are going to do that. This isn't just a fight with an adjuster over the cost repair. Neighbor's insurance has no real obligation to process the claim or pay him at all. Its obligation is only to its insured, the neighbor. When I said payment upfront, I meant his son paying for repairs in the normal course after having them done and then separately dealing with insurance. I didn't mean just pay the body shop prior to the work being done. 

 

Confedsion, I worked for SF for many years.  If their insured admits they were at fault SF will pay the claim.  Say what you want about SF, but it’s not like the neighbor was insured by Fred Loya or some other place that does straight liability for $30/month out of a run down strip center in a bad neighborhood.  If it’s disputed/unclear things can get a little dicey and the OP would probably be better off going through his insurance and let them handle the dispute on his behalf.  Point was get the car in the shop because nothing is going to happen until the damage is assessed.  SF can’t write a check until they know how much to write the check for.

[Dahobbs 17522]

47 minutes ago, conVINCEd said:

Confedsion, I worked for SF for many years.  If their insured admits they were at fault SF will pay the claim.  Say what you want about SF, but it’s not like the neighbor was insured by Fred Loya or some other place that does straight liability for $30/month out of a run down strip center in a bad neighborhood.  If it’s disputed/unclear things can get a little dicey and the OP would probably be better off going through his insurance and let them handle the dispute on his behalf.  Point was get the car in the shop because nothing is going to happen until the damage is assessed.  SF can’t write a check until they know how much to write the check for.

I've litigated plenty of claims against SF. They don't pay third-party easily or quickly (and to be fair, they aren't under any obligation to do that). I don't care how much not in dispute the matter is. The name of the game is delay, and they are very good at it. Hell, SF will not even send a dec page for their insured until you file suit. SF will eventually pay I'm sure, but they are not going to be proactive about it. USAA in comparison gets shit paid fast. But yes, I agree he needs to at the very least get an estimate if not just get the whole thing fixed. I'm just saying I don't think the repair shop is going to do the work and agree to handle getting payment from state farm. 

[conVINCEd 21469]

9 minutes ago, Dahobbs said:

I've litigated plenty of claims against SF. They don't pay third-party easily or quickly (and to be fair, they aren't under any obligation to do that). I don't care how much not in dispute the matter is. The name of the game is delay, and they are very good at it. Hell, SF will not even send a dec page for their insured until you file suit. SF will eventually pay I'm sure, but they are not going to be proactive about it. USAA in comparison gets shit paid fast. But yes, I agree he needs to at the very least get an estimate if not just get the whole thing fixed. I'm just saying I don't think the repair shop is going to do the work and agree to handle getting payment from state farm. 

That may be fair regarding third party claims.  My experience tells me that for something that is relatively minor, which the OP’s incident sounds like, the claim rep just wants the file off of their desk.  If his son starts having neck pain, and there is the potential for significant medical bills,  or if the vehicle is a Ferrari and there’s going to be a fight over the repair cost,  that’s a different deal.  My exposure to claims is limited to dealing with SF insureds and my own claims.  Every time I’ve wrecked a car I’ve simply given the body shop the claim number and contact info for the adjuster,  and picked up the car a few days later after paying my deductible to the body shop.  It’s been a while since I’ve been in a wreck though.

[bernorange 8359]

Thanks all for your help.

My son went and got two estimates on the repair work and then we called the insurance company (it was actually Farmers and not State Farm - my bad).  They asked which repair shop we wanted to use and then they communicated with the shop.  We have an appointment set for next week for the repairs and Farmers is also making arrangements for my son to get a rental car while the repairs are done.

[Bernard 879]

Make sure to have State Farm pay for the vehicle’s diminished value, as well as the repairs.

Bernard

[CoTex 1160]

There is a logical gap here, and I can no longer remain silent.

You started with “neighbor apologized, admitted fault…” and then jumped to “how soon can I get my money?”

it is entirely possible that the insurance company reviewed the photos and reached an alternate conclusion.  They do this for a living and see more accidents than you do. 

It is also entirely possible that the other driver gave an interview to his insurer that didn’t square with “admitted fault…”

Here, in Texas, we have rights.  Property rights, due process rights, all kinda rights and, so does the other driver, and so does his insurer.

Until a judge and/or jury adjudicates the other driver liable, he/she owes you zip.  “Yeah but he said he was liable…,” is evidence, but not the same as a judgment. At trial the driver could roll out “I was scared and excited and now, reflecting, I did nothing wrong.”

And, when the judge/jury believes your son, maybe a teenage driver, and not that bs story, and finds in your favor, the insurance company may still have a basket of defenses.  Examples include “that car/driver wasn’t insured, and the damage exceeds the coverage.”

Im not saying you’re holding a losing hand, but I am saying all you’re holding right now is an accident report, a claim and a jacked up car.  You gonna press your claim?  I bet you’re not experienced at this game.

My suggestion - Submit this to your carrier - they’re good at this game.  Get the car repaired, and then when your rates skyrocket… beat the hell out of your child for causing this wreck and teach that reckless hazard a lesson.

Or, maybe, it will all work out because the insurance company feels a sense of obligation to do right.

Edited May 12, 2022 by CoTex

[C-Man 27183]

Gang, I implore you to NEVER, EVER, EVER go through your own insurance company if somebody else is at fault in an accident that involves a car that you own and/or provide to a kid until it becomes completely necessary. Don't just call them and report it out of convenience. If you have an independent agent/broker, call them and ask for advice. Only go through your insurance when it becomes clear either the other party is not talking to their carrier about the incident or you feel you're getting fucked over in the deal. The down-the-road headaches ain't worth the squeeze -- these claims, no matter how they ultimately get paid, will wind up on your CLUE report and will have bearing on future premiums, eligibility when you shop your insurance, etc.

I'm working with a couple currently who have four auto claims in the last five years -- two are situations where somebody hit his car in the parking lot and he went through his insurance, one is an at-fault (small) and the other is when he hit five feral hogs on the highway just after dawn. All but one high net worth carrier offered terms and the one company that did is going to be more expensive than it would've been if he'd either paid these small claims out-of-pocket or went through the other driver's insurance and never let State Farm know.

[bernorange 8359]

12 hours ago, Bernard said:

Make sure to have State Farm pay for the vehicle’s diminished value, as well as the repairs.

Bernard

According to this site:  https://www.finder.com/how-to-calculate-the-diminished-value-of-your-car

Texas doesn't allow for diminished value claims.  Even if it did, according to the 17c calculation, I think the diminished value would end up being $200-400.  I will ask the Farmers rep about it when they contact us to close out the claim, but I'm not expecting much.

 

10 hours ago, CoTex said:

There is a logical gap here, and I can no longer remain silent.

You started with “neighbor apologized, admitted fault…” and then jumped to “how soon can I get my money?”

...

Uh.... Not really.  I just wanted to get the car fixed and not be twisting in the wind for an eternity.

8 hours ago, C-Man said:

Gang, I implore you to NEVER, EVER, EVER go through your own insurance company if somebody else is at fault in an accident that involves a car that you own and/or provide to a kid until it becomes completely necessary. ...

Oops.

[C-Man 27183]

1 hour ago, bernorange said:

Oops.

All good. Just trying to help my fellow assholes out here! 😉

[Nice Guy Eddie 13507]

5 hours ago, bernorange said:

According to this site:  https://www.finder.com/how-to-calculate-the-diminished-value-of-your-car

Texas doesn't allow for diminished value claims.  Even if it did, according to the 17c calculation, I think the diminished value would end up being $200-400.  I will ask the Farmers rep about it when they contact us to close out the claim, but I'm not expecting much.

 

Uh.... Not really.  I just wanted to get the car fixed and not be twisting in the wind for an eternity.

Oops.

Its been a couple years but I had a diminished value claim in Texas. Or this is a recent Texas change? I think I received a couple thousand from the other guy's insurance. Admittedly it took several months of back and forth and back and forth phone calls. Finally the claims adjuster just paid me to close the case which I was ok with.

[Dahobbs 17522]

7 hours ago, bernorange said:

According to this site:  https://www.finder.com/how-to-calculate-the-diminished-value-of-your-car

Texas doesn't allow for diminished value claims.  Even if it did, according to the 17c calculation, I think the diminished value would end up being $200-400.  I will ask the Farmers rep about it when they contact us to close out the claim, but I'm not expecting much.

This isn't applicable to third-party liability. Texas absolutely let's claim the diminished value of your property as a type of damage in a lawsuit, which is ultimately what third-party liability insurance covers. 

2 hours ago, Nice Guy Eddie said:

Its been a couple years but I had a diminished value claim in Texas. Or this is a recent Texas change? I think I received a couple thousand from the other guy's insurance. Admittedly it took several months of back and forth and back and forth phone calls. Finally the claims adjuster just paid me to close the case which I was ok with.

See above. I assume the link is talking about the policy with your insurer for collision/comprehensive coverage. 

Edited May 12, 2022 by Dahobbs

[bernorange 8359]

Is the fomula the link describes more or less in line with standard practice?

[Quagmire 2147]

Fuck his wife.

Look if he’s not gonna do it I will .

[Dahobbs 17522]

9 minutes ago, bernorange said:

Is the fomula the link describes more or less in line with standard practice?

No idea what insurance companies use. What they use internally for first party claims isn't particularly important to you. Make your claim based on what you think the vehicle's reduced value is. And then let them argue what they want on diminished value. Y'all can then figure out if you can agree/meet in the middle. You aren't bound by any particular formula the insurance company wants to use. 

[TexasEd 8066]

On 5/5/2022 at 12:51 PM, bernorange said:

A few weeks ago, my son was leaving for the gym.  He pulled his car out of the driveway and the neighbor across the street pulled out of his driveway right after and hit my son's car causing some minor damage to the passenger side rear wheel area.  Neighbor apologized, admitted fault and gave his ins. co. info (State Farm).  We had our ins. co. file a claim with State Farm.  A few days later, we got a letter from State Farm acknowledging the claim and stating that they would investigate the claim.  A few days later, a State farm agent called my son and requested photos of the damage to his car, which my son then provided.  We haven't heard didily squat from State Farm since then.

I suppose we could just get the car fixed and then send the bill to State Farm, but I suspect we'd then be fighting an uphill battle to get them to pay it.  What options do we have to expedite the settling of our claim?

If you want it fixed don't release them until all repairs are complete.  Don't take a check.