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Mayor__Defacto t1_jefpk3e wrote

Reply to comment by 84740296169 in Is this normal after an accident? by Impossible-Cry-495

They’re trying to get you to settle with their client for $500 and waive further claims to his policy. The aim of this is to attempt to limit their liability to $500.

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84740296169 t1_jefpnw1 wrote

That was my guess as well. That there would be a release from liability attached to this but does not sound very ethical.

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MikeyMike01 t1_jefqinu wrote

Nothing about insurance is ethical

They charge exorbitant premiums then do everything to avoid paying claims

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84740296169 t1_jefr72a wrote

I would disagree. Consumer-Facing insurance like Personal Auto and Homeowners is very regulated on how much they can charge and what is covered.

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garrettj100 t1_jefxa3s wrote

Are there regulations against insurance companies encouraging OP to commit insurance fraud? Seems like there oughtta be.

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Mayor__Defacto t1_jeg0jb7 wrote

They’re not encouraging OP to commit insurance fraud. They’re encouraging OP to break their own contractual relationship with their insurance company, but that isn’t fraud.

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stlhockeyman777 t1_jegs5pb wrote

What do you mean “by encouraging them to break their contractual relationship with their insurance company?” The presumed at-fault party’s insurance company is encouraging OP to utilize that contractual relationship with OP’s insurer…..albeit as a way for at-fault insurer to gain some advantage themselves and save money or hassle.

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Mayor__Defacto t1_jegx512 wrote

Well, your contractual relationship with your insurance company says that as part of your contract with them you agree not to accept settlements on their behalf. They’re encouraging OP to essentially take $500 so they don’t have to pay their deductible, and then go to their insurance filing a claim with the caveat of “I have already accepted a settlement regarding this matter and as such you cannot pursue the opposing party’s insurer for compensation”

And so your insurer will then cover your damages per your collision policy, but then they’re going to go ahead and raise your premiums (or just drop you).

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garrettj100 t1_jegnsqr wrote

You should explain that to OP's insurance company. I'm sure they'll be very receptive to that argument.

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Mayor__Defacto t1_jegxkew wrote

I know exactly what they’ll do if OP takes this offer. They will cover OP’s damages per their collision policy, and promptly tell OP that they will need to find a new insurer, because they will no longer do business with OP.

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Mayor__Defacto t1_jefqekg wrote

On further thought I am betting that they have looked at the damage and estimated that it’s more than their client’s policy limits, or they decided to drop them as a client previously but this happened before that became effective.

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caveat_cogitor t1_jegms36 wrote

I think this would mean that you basically accept responsibility on the claim on your insurance. Which means your rates will go up, it would not be worth it. Don't do it.

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Mayor__Defacto t1_jegxoow wrote

Your rates go up is the best case. More likely you’re dropped as a client.

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shinobi500 t1_jefych1 wrote

Is that even legal?

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Mayor__Defacto t1_jefyjw3 wrote

It’s not illegal. They have no contractual relationship with you, they have a contractual relationship with their client. Their interest is in paying as little as you will accept to absolve their client of further liability. Their client has damaged your property; if there was no such thing as insurance, you would be filing a lawsuit against the person who damaged your property, seeking a judgement against them. When their insurance offers you a payment, they’re offering to settle your claim of damages against their client; you’re agreeing not to seek further damages.

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