Someone I know got into an auto accident (backed into a parked car). Both parties are insured. The guy I know filed an insurance claim and they find him 100% at fault (duh), but the insurer will not give him any money as a result of this. I’ve never had to file any auto claims in all my time driving (thankfully), so I don’t know as to whether what happened is what’s supposed to happen.
If you’re 100% at fault, is it standard for insurers to give no payout at all? I don’t know the terms of this guy’s insurance policy (told me he uses farmer’s insurance, if that matters, not Geico or some other budget insurer), but I thought the purpose of insurance is to cover yourself in the event of accidents, whether you’re at fault or not. Should I tell him to appeal, or something, or is the insurance company 100% justified in their decision?
Edit: Forgot to mention, but in case it’s not clear, the insurance company on behalf of the guy I’m talking about will not reimburse the cost it takes to repair both cars. I don’t know about the other party’s insurer, but from the sound of it my friend is currently expected to pay for both his and the other party’s repair out of his own pockets ( what happened to the other party’s insurer?)
It has nothing to do with who he insures his car with, it has to do with the coverages he has. If he doesn’t have collision coverage on his policy, then he’s not getting anything from his insurer, at-fault or not. They’ll pay for the other vehicle’s damages, though if he has a valid policy.
Your friend needs to call his insurance company and ask them for clarification on this. He needs to know why they won’t cover the other party. As long as he has an active policy, they are required to cover the other party’s expenses, unless this accident happened in Michigan (the property damage liability laws are slightly different in MI).
It really very simple. The insurance of the liable party will pay to fix the others car. If the liable party has collision insurance, after the insured pays their deductible his insurance company will also pay to fix his car
The insurance co. of the person at fault, will pay the other party, however the other party, if he has collision coverage, can collect from his company, after he pays his deductible. The Insurance company of the person not al fault, will claim against the Company of the party at fault and when they collect, they will reimburse the deductible to their client, in the same proportion that they get pay, in this case 100%. The person that you know, the one at fault, will get pay from his company, only if he has collision coverage, which by your information it looks that he does´nt
if your friend does not have full coverage (Comprehensive and collision) then the insurance company will not pay for his damages. every insurer is requuired to have liability insurance. if farmers is refusing to pay for the other person’s damages, then you may want to contact your state insurance commisioner. Your friend’s liability coverage should cover the other person’s vehicle.