four car auto accident - all insurance companies denying responsibility

[shattered00]

Denton, Texas

Four car accident on highway.

This is what the narrative on the accident report states. "Unit 4 was traveling northbound in the left lane (inside lane). Unit 3 was traveling NB in the left lane behind Unit 4. Unit 2 was traveling NB in the left lane behind Unit 3. Unit 1 was traveling NB in the left lane behind Unit 2. Unit 4 reported that he stopped inside the left lane to yield the right of way to stopped traffic but that he observed from his rear view mirror that Unit 2 was still driving at a high rate of speed. Unit 3 reported that she slowed for stopped traffic when she was struck from behind by Unit 2 and forced into a concrete median. Unit 2 reported that he was initially struck from behind by Unit 1 but did not have any substantial damage to support that he was forced into Unit 3. Unit 1 reported that he believes that he collided with unit 3 as she spun out but denied striking Unit 2 from behind."

The accident report lists Unit 2 as being at fault for following too closely and Unit 1 as being at fault for faulty evasive action. Both Unit 2 and 1 were driven by teenagers (19 and 17 respectively) and the cars are owned by the parents.

Unit 3, which is my family member, has liability only (Allstate). Unit 2 and Unit 1 have State Farm and Progressive respectively with full coverage. Unit 4 has Insurance Connection also with full coverage. Unit 3 had significant whiplash for numerous days after (couldn't move neck back and forth or side to side without noticeable pain and had trouble sleeping due to pain when head was resting on pillow), however, the pain has since ceased and she did not go to the hospital initially.

Initially Unit 3 contacted her insurance and they said to contact the at-fault driver's insurance, which I believed to be primarily Unit 2. Unit 3 opened a claim with State Farm and Progressive just to be on the safe side. Meanwhile, Unit 3 had been towed due to not being drive-able and was sitting in an impound lot where I was going to let it sit until the insurance companies did their investigation and one of them took responsibility. Due to the car being totaled in my opinion, I didn't feel the need to get it out since I figured one of the insurance companies would get it after paying for the current value of the car. I then received a letter from the impound lot advising I had 41 days to pick up the vehicle or it would be seized by their lot and I confirmed with Allstate that if I did not pick it up, they could seize it and we would not get reimbursed for the value of the car by any of the insurance companies that ended up taking responsibility. I decided to wait a few more days hoping the investigation would be concluded, but by the 21st day, Progressive had sent a letter advising they would not take responsibility for the accident and associated fees. State Farm meanwhile, advised that they were not going to proceed with the investigation until they spoke with the Progressive Driver in order to obtain a statement. I decided to get the car out of impound lest I lose the value of it entirely.

Repeated calls to State Farm daily were always met with responses that indicated they were going to do nothing until speaking with the Progressive driver. Eventually, the claim adjuster for State Farm advised they would proceed with their investigation without the statement from the Progressive driver. Approximately one month and a half months from the day of the accident, State Farm advised that they were denouncing responsibility as well and informed us to call Allstate again. Allstate was called and a claim was filed despite the original Allstate rep telling us not to, however, Allstate advised all they would do was attempt to speak with State Farm and Progressive to see why no one was taking responsibility.

The Kelley Blue Book value of Unit 3 in its condition prior to the accident is $2,000. I am out approximately $2,000 from rental fees, impound fees, and tow fees. I desperately need this money to be able to purchase a new car for the family member, because I do not have the money to fund it without taking out a loan which I am trying to avoid.

What are my best options? Searching the forums, it appears people are saying that I cannot sue State Farm in small claims court and must sue the driver? Should I sue both the Progressive and State Farm driver or focus just on the State Farm driver since it appears he was the catalyst for the accident in general? In small claims court in Texas, would I be facing an actual attorney or would it have to be someone that isn't licensed? Surely with the officer and Unit 4 testifying on my behalf about the driving actions of Unit 2, that would amount to the preponderance of evidence needed to win? How would I collect the money though if it was the driver I had to sue and not State Farm (i.e. what compels the person losing to actually pay)?

I apologize if any of this does not make sense. I am at wits end trying to obtain reimbursement for an accident that was clearly not my family members fault. Thank you for any input and advice.

 

[HighwayMan]

What are my best options?

Let your insurance company handle it.

 

[ecmst12]

Liability only coverage is not going to help.

The owner of car 3 can sue cars 1 and 2 in small claims court. It will take time to get any money though since they will be busy arguing over what percentage of fault they will each accept.

 

[latigo]

Denton, Texas

Four car accident on highway.

This is what the narrative on the accident report states. "Unit 4 was traveling northbound in the left lane (inside lane). Unit 3 was traveling NB in the left lane behind Unit 4. Unit 2 was traveling NB in the left lane behind Unit 3. Unit 1 was traveling NB in the left lane behind Unit 2. Unit 4 reported that he stopped inside the left lane to yield the right of way to stopped traffic but that he observed from his rear view mirror that Unit 2 was still driving at a high rate of speed. Unit 3 reported that she slowed for stopped traffic when she was struck from behind by Unit 2 and forced into a concrete median. Unit 2 reported that he was initially struck from behind by Unit 1 but did not have any substantial damage to support that he was forced into Unit 3. Unit 1 reported that he believes that he collided with unit 3 as she spun out but denied striking Unit 2 from behind."

The accident report lists Unit 2 as being at fault for following too closely and Unit 1 as being at fault for faulty evasive action. Both Unit 2 and 1 were driven by teenagers (19 and 17 respectively) and the cars are owned by the parents.

Unit 3, which is my family member, has liability only (Allstate). Unit 2 and Unit 1 have State Farm and Progressive respectively with full coverage. Unit 4 has Insurance Connection also with full coverage. Unit 3 had significant whiplash for numerous days after (couldn't move neck back and forth or side to side without noticeable pain and had trouble sleeping due to pain when head was resting on pillow), however, the pain has since ceased and she did not go to the hospital initially.

Initially Unit 3 contacted her insurance and they said to contact the at-fault driver's insurance, which I believed to be primarily Unit 2. Unit 3 opened a claim with State Farm and Progressive just to be on the safe side. Meanwhile, Unit 3 had been towed due to not being drive-able and was sitting in an impound lot where I was going to let it sit until the insurance companies did their investigation and one of them took responsibility. Due to the car being totaled in my opinion, I didn't feel the need to get it out since I figured one of the insurance companies would get it after paying for the current value of the car. I then received a letter from the impound lot advising I had 41 days to pick up the vehicle or it would be seized by their lot and I confirmed with Allstate that if I did not pick it up, they could seize it and we would not get reimbursed for the value of the car by any of the insurance companies that ended up taking responsibility. I decided to wait a few more days hoping the investigation would be concluded, but by the 21st day, Progressive had sent a letter advising they would not take responsibility for the accident and associated fees. State Farm meanwhile, advised that they were not going to proceed with the investigation until they spoke with the Progressive Driver in order to obtain a statement. I decided to get the car out of impound lest I lose the value of it entirely.

Repeated calls to State Farm daily were always met with responses that indicated they were going to do nothing until speaking with the Progressive driver. Eventually, the claim adjuster for State Farm advised they would proceed with their investigation without the statement from the Progressive driver. Approximately one month and a half months from the day of the accident, State Farm advised that they were denouncing responsibility as well and informed us to call Allstate again. Allstate was called and a claim was filed despite the original Allstate rep telling us not to, however, Allstate advised all they would do was attempt to speak with State Farm and Progressive to see why no one was taking responsibility.

The Kelley Blue Book value of Unit 3 in its condition prior to the accident is $2,000. I am out approximately $2,000 from rental fees, impound fees, and tow fees. I desperately need this money to be able to purchase a new car for the family member, because I do not have the money to fund it without taking out a loan which I am trying to avoid.

What are my best options? Searching the forums, it appears people are saying that I cannot sue State Farm in small claims court and must sue the driver? Should I sue both the Progressive and State Farm driver or focus just on the State Farm driver since it appears he was the catalyst for the accident in general? In small claims court in Texas, would I be facing an actual attorney or would it have to be someone that isn't licensed? Surely with the officer and Unit 4 testifying on my behalf about the driving actions of Unit 2, that would amount to the preponderance of evidence needed to win? How would I collect the money though if it was the driver I had to sue and not State Farm (i.e. what compels the person losing to actually pay)?

I apologize if any of this does not make sense. I am at wits end trying to obtain reimbursement for an accident that was clearly not my family members fault. Thank you for any input and advice.

To help you understand why you cannot sue State Farm I will try to explain.

All liability insurance policies and I mean all types, auto, casualty, etc., are written as indemnity agreements. Meaning that the insurance company agrees to pay on behalf of its insured - that is indemnifies the insured - as to any judgment rendered against the insured that falls within the protected coverage spelled out in the policy and up to the stated dollar limits of the policy.

They are not on their face what is known as a third party beneficiary contract. That is the company does not contract to pay third party claimants on behalf of its insured. Its contractual commitment arises only if a judgment is entered against the insured. Consequently a third party claimant (you for instance) has no rights under the policy.

In fact in any cause action wherein individual liability to another is an issue, not only can the claimant not name the individual's insurance carrier as a party, neither the issue of the presence or absence of insurance coverage related to the claim can be mentioned. Not in the pleadings nor at any time during the proceedings.

I think the source of confusion as to the responsibility of the other guy's insurance company is because such a company will routinely conduct an investigation of the circumstances to determine the extent of their possible exposure. And when their customer appears to be at fault will deal directly with the claimant. Which the claimant often sees as admitting responsibility to him.

But they are only doing it when it suits their best interests. The lawyers they hire to defend their insured in court drive 6 figure BMW$ - few insurance adjusters do.

 

[shattered00]

I wanted to thank you all for taking the time to read and respond to my inquiry. My family member will be taking both driver's to Justice of Peace Court (small claims under 10K). I contemplated waiting until one of the other full coverage insurance companies sued another for re-compensation for their client's vehicle repairs which would likely lead to arbitration, but I do not know if financially I can wait a year or more to see what happens and ride the coat tails of that decision. It seems as if I would still have to take people to small claims. I have just a few questions if anyone knows the answers though.

1) I am curious as to what process I could undertake to obtain the "black box" data of Unit 1 and 2? Is there an equivalent of a search warrant or court order for obtaining information like this related to a civil trial? I would like to have a subpoena issued, but I do not know who has possession of the vehicles and how that would compel anyone to take the vehicle to a manufacturer to get the data at their expense and allow me to review it prior to court. I feel this information would be invaluable though.

2) Also, do we sue both driver's at the same time or will it be two separate trials? What if I feel the State Farm driver is primarily responsible as far as being the catalyst for the crash. Would it still be better to sue both driver's?

3) Can the judge order a percentage for each driver to pay or can he only order that one or both parties are at fault and then the insurance companies battle it out like ecmst12 alluded to? Is there a time limit to how long the insurance companies have to decide the percentage break down if the judge is not able to determine that?

4) If we do "win," will the insurance company of the losing driver(s) eventually pay us or will the money have to come from the defendant and then the insurance company will reimburse them?

5) It will be fairly intimidating going up against an attorney who has been expertly trained to defend against these claims. Do plaintiffs such as my non-attorney family member typically come out victorious solely based on the evidence presented (assuming it supports their case) or is it generally who presents the best case regardless of the facts as is often the situation in a criminal trial? We will not select a jury trial and will rely on the judge FYI unless it is suggested otherwise.

Again, thank you for any assistance. I feel like a bug on its back rendering it unable to right itself.

 

[Zigner]

I don't know what information you think the "black box" (if any) will provide for you, but I can virtually guarantee you that the cost to obtain such information if it actually exists, coupled with the cost of hiring an expert to report on that information (including his/her testimony) will exceed the $2,000 that you hope to recover. Furthermore, I wouldn't plan on getting any Fast Money out of this.

Why do YOU need to replace your family member's car?

 

[shattered00]

Thanks for the response. I was speculating that the event data recorder would be able to tell me how fast the other two vehicles were going, when they braked, and speeds at impact etc along with the time? From that I could bolster my case with the information provided. It does appear that the black box was not even implemented in vehicles until recently, so neither the 99 or 03 would likely be equipped with them. I didn't think about having to have an expert testify in small claims court. Since I am out $4,000, it definitely doesn't seem worth it based on your post. As far as why I am paying for all this, it is my wife involved in the accident. She just graduated from college and will hopefully be getting a job soon to alleviate some pressure from this, but I ended up taking out a loan and buying a vehicle for her in the meantime. 4K could go a tremendous way in terms of helping though... Thank you for the information.