Car crashed into my property and the insurance company is telling me to call my own insurance

Last week, a car crashed into one of my business properties. I called the insurance company of the driver involved in the accident. The police report shows the driver was at fault. Now, the insurance company is saying they won’t pay me directly and that I need to claim through my own insurance because they have to cover the driver’s costs.

They want me to go through my insurance and have them communicate directly with them. It feels like they’re avoiding dealing with me.

I have commercial business insurance. If I file a claim with my insurance, will my rates go up during renewal? Are there any other options to solve this?

It sounds like the other driver’s insurance has a limit problem.

You should probably use your own policy since the at-fault driver only owes you the actual cash value of the damage.

@Keith I’m just asking for the cash value to fix my water line, which was completely damaged, plus some yard and sign damage.

@Gordon It’s still better to use your insurance. There might not be enough coverage, and it could take a long time to get paid. Your insurance will handle it faster.

@Keith Better in terms of speed, right? But won’t it affect future insurance rates?

@Lenox There’s a limit issue here. You might not get the full amount needed for repairs.

If the water line alone costs $10k, plus the broken sign and other damages, you’ll have to cover part of it yourself. The other insurance company only owes you the actual cash value, so if the sign is old, you’ll only get part of what it’s worth. You’ll probably come out better using your own coverage.

@Keith The total damages are about $10k. It’s frustrating that people drive expensive cars but carry such minimal insurance.

Did the driver hit anything else besides your property?

It’s strange they’re saying that because insurance payments usually come from different coverage amounts.

@Trailblazer4 Yes, he hit another car, and that car ended up hitting my property. Both cars were totaled.

@Gordon That changes things a lot. It sounds like the driver doesn’t have enough insurance to cover both the other car and your property. The money is going to be split between all of you.

If you want to make sure you get everything back, it’s better to use your own insurance. Your rates might go up, but it’s better than spending years in court for a settlement that might not even cover the damage.

@Trailblazer4 My total damages are about $10k, and I already fixed the water line out of my own pocket since it was urgent. I was hoping not to involve my insurance because we’ve had no claims for years. But I guess I’ll have to call them now and try to get reimbursed.

@Gordon It sounds like you’re in Texas, and the minimum property damage coverage here is $25k. That’s probably what the driver had.

You’re sharing that $25k with the other car that was pushed into your property.

If the other car’s damages were $15k or more, you’re both going to get less than what you need. You might not want to gamble on getting the full amount, but that’s up to you.

@Trailblazer4 The other car was pretty new.

@Trailblazer4 The real question is how much more you’ll get from using your own insurance and how it will affect your rates.

@Lenox No one can give an exact answer. It’s up to you to decide if it’s worth it. We don’t know if $10k for the repairs was an overpay or underpay either, so it could go either way.

There’s no set rule that says if you claim X amount, your rates go up by Y. So you’ll have to balance it yourself and see what makes the most sense.

@Trailblazer4 Actually, there’s data filed with state regulators on how claims affect premiums.

@Lenox Feel free to share the exact line in the latest rate filing for OP’s insurance company that shows this.

@Trailblazer4 I called my insurance, and they said they’d handle it. However, I have to pay my deductible, which is $5k. If they recover the costs, I’ll get that back. The rep said he couldn’t guarantee my rates wouldn’t go up, but since we’ve never filed a claim, I’ll probably lose the no-claim discount. He also said I could claim for my water bill and lost business due to the accident, but I chose not to. I’m sure the other driver’s insurance will max out, and more claims won’t help.

If there’s not enough coverage for everyone, then there’s not enough. You can either use your own insurance and get everything covered (minus your deductible) or stick with the other driver’s insurance and likely only get a small part of your costs covered. Your choice.

You could also sue the driver, but that will take time, and even if you win, you might have trouble collecting the money. Weigh the cost and time involved.