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I've been wondering something for a long time, and maybe some people that have worked in the insurance business might enlighten me.

If someone is at fault and hits your car, but has no insurance, what does your insurance company actually do?

Say you have full coverage and that you get your car repaired so you’re happy. But what about the insurance company, will they actually spend the money for lawyers, etc. to go after somebody that will probably not have the money to pay? Or do they just roll that “loss” into everybody else’s premiums? :redmad:

Say you don’t have full coverage and YOU have to go after the person at fault. You see it all the time. Yes, the person was at fault. Yes, they can be sued. Yes, they lose the court case. Yes they are ordered to pay your repair bill…. But they have no money!!! So you’re out $1000’s for the vehicle repair AND lawyer’s fees with no “realistic” way to recoup any money. :zbash:

I’m sure, insurance companies are in the same situation on a daily basis and on a much larger scale!! So do they “cut their losses” and roll the loss into the premium, or do they go after all those at fault, hoping they will eventually get money? :confused:

Anyone have any first hand knowledge on this? :2huh:
 

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I know a lot of insurances compainies sue the individual in an attempt to reclaim their money.

--Craig
 

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thats what the underinsured/ no insurance part of your coverage takes care of. and yes the insurance company goes after the person . and as far as the damage to your car , i would take it as a case to case basis
 

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94 Daily Driven 4.6L said:
Or do they just roll that “loss” into everybody else’s premiums? :redmad:
If you file a claim, your premium will go up.

I'm not exactly sure, but I think that it works the same way it does if some a-hole were to rob you. They have to pay restitution; the government takes money out of their paychecks every week and that money goes to your (in this case, your insurance company) until they pay back the amount owed. That's my thought.
 

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jk89cat said:
thats what the underinsured/ no insurance part of your coverage takes care of. and yes the insurance company goes after the person
Not in Alabama... :redmad:

According to Geico (and I just called to double check!), underinsured/no insurance converge in AL, ONLY covers bodily injury to yourself and/or passengers but NOT repairs to your car!!! :redmad:

Some states offer property underinsured/no insurance but not Alabama!! :redmad:

But what this post was mainly about was if the insurance companies "actually" do go after the underinsured, knowing that they probably won't ever see any of their money. :2huh:
 

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guys this just happened to me two weeks ago.

I was driving from downtown through the ghetto to my house, with this girl I know.

We were rear ended by a tempo, the driver had switched plates, no license, no registration.

The cops came and arrested the guy.

Allstate said that they offer a 'non insured driver' policy, which I didn't have.

So they put it on my colission as a non fault accident, and I paid 500 bucks.

Allstate then sues the other driver, i'm not involved at all. If they get money out of him, i get my 500 back, if not then I eat it.
 

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Ok this is the deal..I work for an Insurance company so I'm not guessing here.

1. If the accident isn't your fault and it turns out the driver has no insurance but you have full coverage...you just have to pay your deductible and they go after that person. (Some companies won't go after a person if it's under a certain amount...they weigh the cost of lawyers, investigators, etc. etc. if the damage isn't worth it they may just write it off) You will not know what the insurance company is doing about it since this is an internal thing. They have many steps to go through and it could take years before this catches up to the person.

2. Uninsured Motorist coverage only covers if you are injured. Unless you have Full Tort, which means you can sue for damages, this also means your premium jumps way up...normal policies have Limited Tort it's cheaper and most people won't sue unless they are hurt...so it doesn't matter that you have this. (If you like you can request Full Tort but it will increase your policy)

3. If you don't have full coverage, just liability, then I suggest (if you're bent on revenge) you go to your local police department and sign a compliant against the driver and pursue a civil lawsuit. BUT IF THEY COULD AFFORD INSURANCE, MOST LIKELY THEY WOULD HAVE IT ALREADY so sueing them really doesn't do any good accept having points put on their license, driving privilages taken away and if they have any assets a lien would be put on them. Usually anyone under 27 or so won't have any assets except their car that's now damage. (Not the case always but that's just an average)

4. All the answers to most of your insurance questions are in that 'big' packet that they mail everyone that noone reads...mostly b/c it's too confusing but that has now changed and is suppose to be 'reader friendly'.

Oh, almost forgot...if the accident is not your fault your premium won't go up with that insurance company...many companies have 'accident forgiveness' programs. If you switch to a new company they may assess some 'insurance' points but not enough to make a dramatic change in your premium.
 

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What about if both drivers have liablity insurance and its hard to say who's at fault ?
 

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cjchevez said:
What about if both drivers have liablity insurance and its hard to say who's at fault ?

Somebody's always at fault (even with a no faults accident that's just what they call it when they can't "prove" who was) and when they can't determine whose fault it is it's called a no faults claim and both insurance companies pay for one anothers...but in this case the person without insurance is viewed as the person at fault b/c they should not have been on the road at all! And then it becomes an uninsured motorists claim. :D

Also, they determine whose at fault by the damage done to the cars...if you were rear ended you're not at fault b/c the person behind you should have had control of their car at all times...it doesn't matter if the SOB just slammed on his brakes for no reason, you're still at fault. (it's called safe driving distance). Usually any damage to the rear of the car (this is after the doors) the other person could be liable but then again it depends on if you were coming out of a side street or turning, etc. etc. b/c the person driving the straightaway always has the right away. There's so many in's & out's and it's usually a case by case determination...there's no set rules except the laws and what's written on your declaration page of your insurance policy. ;)
 

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Thanks Teresa
 

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96dirtybird said:
Hey sweetness, who do you work for? I've been at AAA for 3 years. Good job on answering the questions.

I work for Admiral Insurance and it's not car insurance it's Excess & Surplus Insurance. We do multi million dollar policies...example, we do the insurance for Playboy, Fear Factor, all the taxi cabs in New York, construction companies...all the high risk stuff no one else wants to insurer.

I answered from experience of getting into accidents and being able to read and understand insurance policies. (even though it's not car insurance I do, it still has the same logic.) =) Thanks for the props! :D

p.s. I also do all of the state compliance filings for 3 of our companies in all of the US and some foreign countries....making sure we're legal and able to do business where we want. ;) (it sucks, lol...some days I wanna poke my eyes out)
 

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sweetness45oh said:
I work for Admiral Insurance and it's not car insurance it's Excess & Surplus Insurance. We do multi million dollar policies...example, we do the insurance for Playboy, Fear Factor, all the taxi cabs in New York, construction companies...all the high risk stuff no one else wants to insurer.

I answered from experience of getting into accidents and being able to read and understand insurance policies. (even though it's not car insurance I do, it still has the same logic.) =) Thanks for the props! :D

p.s. I also do all of the state compliance filings for 3 of our companies in all of the US and some foreign countries....making sure we're legal and able to do business where we want. ;) (it sucks, lol...some days I wanna poke my eyes out)
wow, yeah I started with the underwriting side of AAA, and now I'm a sales agent for NV, UT, OH, AZ and soon good 'ol CA. I'm also on the spanish bi-lingual team. :D But, yeah, mad mad props to you girlie!!!!!!! ;)
 
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