Car Accident, Not at Fault, Insurance Question

[robinb]

Good NYE evening DIS'ers! I am writing this waiting for my DH to make a cocktail to have with our cheese fondue. Now, onto the question ...

My DD25 is temporarily living in Colorado and working as a ski instructor. She lives across a mountain pass from the resort because that's where the affordable housing is. On the way home, just at the final hairpin turn up, another vehicle without snow tires began their decent. Even though they were driving their 4WD car very slowly, their tires lost purchase, crossed the center land and side swiped my DD. The damage starts at the front quarter panel, past both doors (the driver side door is ruined and won't open) and it continued to the rear quarter panel. I'm not sure about the bumpers. My DD was driving and exchanged information with the other driver. Her car is a 2015 Outback, so "10 years old" tomorrow, and maybe worth $9k. The car is in our name (she is a designated and insured driver) and I think the insurance company will total it. She is filing a police report tonight so that she has her account of the accident on record both for an insurance claim and in case the other party plays games.

If the car is totalled her boyfriend's family and we will be buying them a new car which will be titled in both their names (they have been dating for 7 years now). The kids will insure it and both sets of parents will have them off our insurance (yay!). Will the new insurance company hold her accident, through no fault of her own, against her? Would it be better to go through our insurance and have them subrogate for us or directly through the other driver's insurance? Will the accident be held against us?

We will be filing through someone's insurance tomorrow.

 

[sam_gordon]

I would start with the other driver's insurance. If you start having problems with them, THEN contact yours for help.

 

[disneychrista]

I disagree with Sam. Contact your insurance and let them handle it. A little over a year ago someone ran a red light and hit me. We exchanged information and as soon as I got home I contacted my insurance and gave them the other parties information. They handled everything. That is what you are paying them for. If your daughter is deemed to not be at fault, which is sounds like she wasn't, it should not count against her.

 

[sam_gordon]

I don't think either answer is wrong. But, as long as the other insurance company is on the ball, I think you're adding an unnecessary layer if you go through your own. Might slow things down. OR, if the other insurance is slow, contacting yours could speed them up.

 

[kymom99]

I was rear ended and had my insurance company handle it. I had to pay the $250 deductible but I got it back eventually. I was hit by a semi so I assumed I was dealing with a company. I didn’t want it to turn into David and Goliath.

My rates weren’t affected.

 

[tvguy]

I don't think either answer is wrong. But, as long as the other insurance company is on the ball, I think you're adding an unnecessary layer if you go through your own. Might slow things down. OR, if the other insurance is slow, contacting yours could speed them up.

Most insurance companies require policy holders to report any accident that a car they have a policy on is involved in. Not reporting it to them can lead to your policy being canceled. Just doing brief research, in some states, the law requires you to report it to your insurance even if you are not at fault .

 

[John VN]

........................................................................

If the car is totalled her boyfriend's family and we will be buying them a new car which will be titled in both their names (they have been dating for 7 years now). The kids will insure it and both sets of parents will have them off our insurance (yay!). Will the new insurance company hold her accident, through no fault of her own, against her? Would it be better to go through our insurance and have them subrogate for us or directly through the other driver's insurance? Will the accident be held against us?

We will be filing through someone's insurance tomorrow.

r.e. bold -- For dating individuals and shared property doing so is usually not a good idea. IMO and experience, reporting to Insurance Co. is very important and acts as a safety net. Good Luck.

 

[sam_gordon]

Most insurance companies require policy holders to report any accident that a car they have a policy on is involved in. Not reporting it to them can lead to your policy being canceled. Just doing brief research, in some states, the law requires you to report it to your insurance even if you are not at fault .

Didn't know that. Are you sure this isn't just a California thing?

 

[pens4821]

I agree with the couple others who said contact your insurance and let them handle everything. That’s their job and they know how to take care of things. I would never try to do it myself, and I don’t think it would be recommended.

I’m not sure about the accident having an impact on her getting her own insurance or on your rates. Since it wasn’t her fault I wouldn’t think so. However I have read of making any claim at all potentially making your insurance go up.

 

[FreeTime]

Didn't know that. Are you sure this isn't just a California thing?

Same in my area also unless you are doing a 100% self pay. We are an insurance is required state or you will be ticketed / jail time.

 

[FreeTime]

r.e. bold -- For dating individuals and shared property doing so is usually not a good idea. IMO and experience, reporting to Insurance Co. is very important and acts as a safety net. Good Luck.

I agree. Difficult web to untangle if something happens. If both sets of parents want to gift a car, and the kids have it in their budget, maybe each can make a downpayment for their kid and the kid can make the remaining payment.

 

[sam_gordon]

Same in my area also unless you are doing a 100% self pay. We are an insurance is required state or you will be ticketed / jail time.

I think every state requires insurance. That doesn't mean the law requires you report to your insurance.

 

[FreeTime]

I think every state requires insurance. That doesn't mean the law requires you report to your insurance.

Good to know all states may require it. I just looked up my state. Regardless of the payer, state law requires reporting to your insurance company. It is a $1000 fine for not reporting and a misdemeanor. I learned something new.

 

[sam_gordon]

Good to know all states may require it. I just looked up my state. Regardless of the payer, state law requires reporting to your insurance company. It is a $1000 fine for not reporting and a misdemeanor. I learned something new.

Yea, I didn't know that, and I can't find information for my state (other than reporting to police if there's an injury or more than $500 in damage).

I don't understand why there would need to be a law to report to your insurance company.

 

[leebee]

Report it to the cops and to your insurance company.

 

[barkley]

i've always found it easier to let my insurance company handle things esp. when I was involved in an accident with a driver from a state other than the one I lived in/was insured in (in my case the other state's insurance requirements were far lower and my underinsured motorist coverage had to kick in but it did'nt count as a ding against my claims history). in the situation the op is in I think it could get complicated with the issue of purchasing a new car (if it's indeed totalled) if the DD is there temp just b/c of the whole issue/process of buying a car out of state/registering and insuring it in the permanant home state and the costs associated with all that (all those odds and ends costs add up and should be covered by the responsible party which your own insurance company should pursue but the party's might not mention/blow off). temporary transportation? my insurance covers it w/direct pay to the vendor but the other person's wanted me to self pay and pursue 'reasonable reimbursement' (our position was what it cost out of pocket was reasonable vs. some outdated per diem their insured's policy provided their insured with).

you pay your deductible and when all is said and done it's reimbursed to you-no harm no foul as a claim.


ongoing insurance though.........in my state if someone is listed on their driver's license as using your home address as theirs ('permanant') then they are required to be on your policy so adult children co-habiting with partners in college and beyond could not co-own and insure a car unless they both had the same permanant address so that's something to consider. I know this has been an issue for some whose 20 somethings continue to use their parent's address for tax/parental employment sponsored health insurance so it becomes a consideration.

 

[Kathryn Merteuil]

I think it depend on the insurance company you have.

SEVERAL years ago, my car was parked, in a designated parking spot at work (I was not in the car). A coworker backed into it, and did a significant amount of damage. The coworker's insurance covered everything. I did tell my insurance company at the front-end in case it was going to become a problem w/the other one covering it. They raised my rates went up next cycle because "I had been in an accident". I asked them why my rates were raised, and that is exactly what they told me. I changed companies at that point.

 

[barkley]

I changed companies at that point.

good for you! that's a stupid policy on your former company's part. my company has accident forgiveness on one claim and even though they ended up paying out a chunk of change through my underinsured motorist coverage on the one accident it did'nt count against us nor was it applied to the forgiveness provision.

 

[tvguy]

Didn't know that. Are you sure this isn't just a California thing?

Doubt it. No idea on states where it is the law to report a not at fault accident to your insurance company. But I suspect almost every insurance company in every state has that as a contractual requirement in all their policies.

 

[robinb]

An additional concern is that I had an accident in 2018 where I was at fault. My car was totaled and there were injuries in the other car. My insurance company paid, raised my rates and didn’t drop me. The “accident forgiveness” mentioned. So, I’m also worried that I might get dropped if I file through my insurance even though she’s not at fault.

I’ll check the rules for reporting to insurance in Colorado and my home state.