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  1. #1
    haha0002 is offline Junior Member
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    Other Person Ticketed But Insurance Co. Won't Pay

    North Carolina

    My stepson had an accident at an intersection with stoplights, other party was ticketed by the police. He filed a claim with his insurance company, only to be told they had dropped collision at renewal because he added his sister who had points (the vehicle is financed, so I'm not sure how they can do this). His insurance co. is Farm Bureau. He placed a claim via the other party's insurance co (USAA) and was told the lady was out of town and would be back in 2 weeks. They couldn't do anything without her statement. Now they told him that he is 1% at fault and in NC, they don't have to pay if any fault lies with him. This all sounds very convenient for them. Meanwhile, he still owes 11,000 on the vehicle. I've told him to get a copy of his sister's driving abstract and a copy of everything the insurance company sent him related to taking the collision off. What we need to know is, is there anything else we can do? Any recourse, other than arguing with the insurance companies or getting a lawyer?What is the name of your state (only U.S. law)?
  2. #2
    RR Rodriguez is offline Member
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    Quote Originally Posted by haha0002 View Post
    North Carolina

    My stepson had an accident at an intersection with stoplights, other party was ticketed by the police. He filed a claim with his insurance company, only to be told they had dropped collision at renewal because he added his sister who had points (the vehicle is financed, so I'm not sure how they can do this). His insurance co. is Farm Bureau. He placed a claim via the other party's insurance co (USAA) and was told the lady was out of town and would be back in 2 weeks. They couldn't do anything without her statement. Now they told him that he is 1% at fault and in NC, they don't have to pay if any fault lies with him. This all sounds very convenient for them. Meanwhile, he still owes 11,000 on the vehicle. I've told him to get a copy of his sister's driving abstract and a copy of everything the insurance company sent him related to taking the collision off. What we need to know is, is there anything else we can do? Any recourse, other than arguing with the insurance companies or getting a lawyer?What is the name of your state (only U.S. law)?
    you should have been notified about the removal of the collision coverage to the vehicle. The finance company should have been made aware, they may have forced coverage for him. Usually out of control expensive but possibly it saved him this time.
  3. #3
    haha0002 is offline Junior Member
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    Thanks. The finance company was never notified - he found that out minutes ago. We're waiting for the copy of the paperwork which supposedly notified him of the change to collision. What's also curious is that he's paid the same monthly amount for insurance for the past 3 years - dropping collision did not change his premium.
  4. #4
    RR Rodriguez is offline Member
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    Quote Originally Posted by haha0002 View Post
    Thanks. The finance company was never notified - he found that out minutes ago. We're waiting for the copy of the paperwork which supposedly notified him of the change to collision. What's also curious is that he's paid the same monthly amount for insurance for the past 3 years - dropping collision did not change his premium.
    I would definitely keep pursuing that line of the situation.

    Adding the driver and removing the collision may have just cxled each other out premium wise, so he may have not noticed a difference because there wasnt one.

    Why was your daughter added to his policy?
    Is she covered somewhere else ? (your policy perhaps?)
    How long ago did all this supposedly happen? (the removal of the coverage)
  5. #5
    haha0002 is offline Junior Member
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    I believe she was planning on buying a car, so he was adding her as a courtesy. My speculation. She hasn't had a car in 2 years. I've told him to get her to get a driver's abstract from the dmv asap to see if what they're telling him is true (re: her points). He said he added her in 2008, I think he said the beginning (we're in a different state, so all info is via sporadic phone calls). The insurance Co. deals via agents, so I want to make sure the agent isn't just trying to cover themselves, if they dropped the ball. I'm just outraged that the other party makes a left turn in front of him, gets a ticket for not clearing the intersection and they won't pay based on the 1% rule. Nuts.
  6. #6
    ecmst12 is offline Senior Member
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    It's called contributory negligence - any party that contributes TO ANY DEGREE to the accident taking place is completely barred from recovery from the other party.

    Your son is in big trouble with his leinholder. Removing collision from a car he owed money on is forbidden by the terms of the loan and really dumb.
  7. #7
    haha0002 is offline Junior Member
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    Yes, it would be dumb if he had done it, but he didn't. His own insurance company did.

    Thanks for the info on contributory negligence though. Who decides that? The insurance company themselves? Because, it seems very profitable for them to declare that in all cases, so they don't have to pay.
  8. #8
    ecmst12 is offline Senior Member
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    It's the state law. Different states go by different theories of negligence. Only five states go by this doctorine but NC is one of them. And it means that insurance is usually cheaper in those states.

    The insurance company would not have removed the collision coverage without his knowledge and consent.
  9. #9
    RR Rodriguez is offline Member
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    Quote Originally Posted by ecmst12 View Post

    The insurance company would not have removed the collision coverage without his knowledge and consent.
    They can though, and it appears they did.

    I would argue, if the collision wasn't reported to the finance company to be removed, then it is possible, that the insured was not properly notified either.

    Especially true, if the company is working through an agent.
  10. #10
    ecmst12 is offline Senior Member
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    The agent would NOT have removed the collsion coverage without son's knowledge and consent.

    I'll tell you how the conversation went:
    Agent: Here is the new premium after adding your sister.
    Son: YIKES that's too much!
    Agent: Well, we can remove the collision coverage to lower it, but you won't be protected if your car is damaged in an accident that is partially or totally your fault...
    Son: Do whatever you have to to keep the premium what it was before.
    Agent: The customer is always right!
  11. #11
    RR Rodriguez is offline Member
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    Quote Originally Posted by ecmst12 View Post
    The agent would NOT have removed the collsion coverage without son's knowledge and consent.

    I'll tell you how the conversation went:
    Agent: Here is the new premium after adding your sister.
    Son: YIKES that's too much!
    Agent: Well, we can remove the collision coverage to lower it, but you won't be protected if your car is damaged in an accident that is partially or totally your fault...
    Son: Do whatever you have to to keep the premium what it was before.
    Agent: The customer is always right!

    If the conversation was how it went, and I do agree that it does happen exactly that way, then the all wise and law abiding agent would have gotten the insureds signature on that change.

    Plus, the same perfect insurance agent would have advised him, that even without his signature they cannot remove the coverage due to the car having a loss payee attached.

    And, being the proper agent that they are, would have sent notification to at least the finance company about the change to coverage, in the first month it happened, not the finance company still not knowing about it after a year.

    OP, your son needs to take this all the way with his insurance company and if it is their position that they removed the collision due to his sister being added, they really cant do that without all the proper notifications.

    And finally, just being adult and all, why would the posters son, take off his collision (which he needs) just to add his sister to his policy, when the OP admits was a courtesy to her, and she never got the car she said she was going to get to put on the policy? I doubt the conversation went at all like that.
  12. #12
    RR Rodriguez is offline Member
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    Quote Originally Posted by ecmst12 View Post
    The agent would NOT have removed the collsion coverage without son's knowledge and consent.

    I'll tell you how the conversation went:
    Agent: Here is the new premium after adding your sister.
    Son: YIKES that's too much!
    Agent: Well, we can remove the collision coverage to lower it, but you won't be protected if your car is damaged in an accident that is partially or totally your fault...
    Son: Do whatever you have to to keep the premium what it was before.
    Agent: The customer is always right!
    Which to me as an agent would not put the sister on the policy.

    Probably, as business practice is supsoed to go, the insurance company or agent would have wanted all requested changes to the policy (or endorsements) to have the clients signature.

    Which I daresay since they do not appear to this insureds mother, to have... that probably makes the change to the policy fully the insurance companys doing. and wheter or not everybody was properly notified, makes all the difference here.
  13. #13
    haha0002 is offline Junior Member
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    I have no idea how the conversation went, i'm several States away, so can't vouch for anything. According to him, insurance company states that they sent him the collision drop with his renewal and informed him at that time. He has requested copies of correspondence from his Agent. I'll have a look at what he got and go directly to the insurance company, if need be. I too find it strange that they would just take it off. The only other theory, is that the agent dropped the ball somewhere, but we'll see.
  14. #14
    RR Rodriguez is offline Member
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    Its his only chance to get this covered... good luck. ((showing the agent somehow dropped the ball))
  15. #15
    ecmst12 is offline Senior Member
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    I'll bet my hat that son's signature is on the forms to drop collision coverage.

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