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Determining liability | Fault dispute with my own insurance company!

by Tom

I have recently been in an auto accident with another vehicle, and the insurance companies are now trying to determine liability.

My insurance company has determined me to be not at fault. We are awaiting the other insurance company's liability decision. They keep responding that 'they need to get a statement from their insured'.

My questions are: Is the other insured legally bound to accept his insurance company's liability decision? How long does the other insurance company legally have to determine liability, and can they determine their that their insured is liable even if the insured disagrees? What actions can I take to expedite the decision?

I live in Texas if that helps.

Thanks
Tom


Answer:

Hello Tom,

You have very good questions. Unfortunately, I do not encouraging answers.

The questions that you outline (which I answer below) speak to the very essence of why we write this website. These issues lead to a lot of frustration for insureds and innocent drivers.

Okay, here is what I have:

Is the other insured legally bound to accept his insurance company's liability decision?

No. Each insurance company has a duty of determining liability independently. Their decisions do not bound not do they bar the other. However, if the insurance companies cannot come to an agreement, then they have to go to arbitration. This entire process can be frustrating and it might take more than 45 days.

For more information about arbitration, please visit: http://www.auto-insurance-claim-advice.com/arbitration.html

-How long does the other insurance company legally have to determine liability, and can they determine their that their insured is liable even if the insured disagrees?

They have up to 30 days to make an investigation. However, in 30 days they are only required to put in writing why they are not making a decision (inform you of the where the investigation is at), which a simply letter might buy the another 30 days.

The cannot find against their own client unless they have independent evidence that the accident indeed happened with their client, and in their client is at fault for that.

Some accidents are clear (rear ended collisions) and if there is a police report pointing a their client as at fault (and at the scene); it would probably be sufficient to make a decision without a statement. However, most insurance companies do not (have to be very careful with bad faith) accept liability unless they talk to them.

Their argument is this: Would you like someone to start determining liability against you without first talking to you? Probably not.

In addition, insurance companies can deny coverage if they believe their insured is not cooperating with the investigation, visit:


http://www.auto-insurance-claim-advice.com/Duty-to-Cooperate.html


That actions can I take to expedite the decision?

The only thing you can do is to be "on top" of the investigation making sure your insurance company pushes the issue to arbitration (see the link above). Also, after 30 days you can contact the Texas Department of Insurance, and of course, contact a local attorney before you do anything.

http://www.auto-insurance-claim-advice.com/

Comments for Determining liability | Fault dispute with my own insurance company!

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Apr 13, 2012
I can't believe my ins. is doing this.
by: Anonymous

I wrote the above. I'm not in a no fault state. (California). I believe they are finding me at fault to save money on litigation which isn't in my best interest. Should I file a report with the state insurance commissioner or is that a waste of time? I do have a letter from the other insurance company stating there were no independant witnesses.

Reply

Department of insurance sometimes can help change a determination if you have independent evidence. You may waste your time, but at the same time, you lose nothing by doing it.

Good Luck

Apr 10, 2012
I can't believe what my insurance co is doing
by: Anonymous

There was a witness on the police report (against me) but the witness doesn't return my insurance companies's phone calls. I filed a claim with the other insurance company but they have denied liability because there are NO INDEPENDENT witnesses that can prove or disprove either way. My insurance company has found me 51% at fault based on a witness they have never spoke too and one in which the other insurance company says is not an independent witness. I feel they are doing this to avoid litigation. Can anybody comment.

Mar 19, 2012
same question different place.
by: Anonymous

I have all the same questions but live in Florida, are all the answers you gave Texas the same?

Answer

Florida is a no fault state. If you disagree with the insurance company, contact the department of insurance and ask them to explain your options. Also, depending on your circumstances, the no fault statute may render a decision of fault moot.

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