Underinsured Car Accident

[raytheon]

Hey guys, I need some help. A few months ago I rear ended a Tesla model Y. Recently, I received a letter from collections that my policy was not able to cover all of the damages, and I needed to pay $8,110.76 out of pocket to cover the rest. Shouldn’t their policy cover the rest of the damages before it becomes my out of pocket problem? Additionally, it seems absurd that it would cost $29,000 to repair this damage. Is there anything that I can do about this?

Facts below:

I live in Florida

The vehicle damages are described as:
- Liftgate
- Passenger Quarter Panel
- Rear Bumper

Picture of damage below:

https://imgur.com/a/lQ7XrGK

Problem: My insurance (State farm) had a policy limit of $25,000 to cover the damages of the other persons vehicle.
State farm paid $25,000 to Geico:
- $21,076.94 for Vehicle Damages
- $3,923.06 for out of pocket rental for other person

Geico is looking for $8,110.76 to cover for any damages outside of the $25,000 limit.

Total expenses were:
$25,000 (paid by State farm)

$8,110.76(paid by Geico)​

$33,110.76($29,187.7 for Vehicle, $3,923.06 for his car rental.)

Edit:
FYI everyone, I am aware that the 8k is my responsibility for having low limits, what I am looking to answer is if there is any way that I can argue the cost of fixing the Tesla as it seems a bit absurd, or if I am out of luck. Unfortunately I was under my parents insurance and I was not involved so I am learning the consequences. I am willing to pay up I just want to be sure that there is no way to lower this(for example: getting a much lower quote from another shop for these damages)

Edit 2:
Was able to negotiate the claim to settle $1800 instead of 8k luckily. Will be increasing my coverage ASAP. Leaving this post here so others can learn from it.

 

[nikelove]

@raytheon Raise your limits you are severely underinsured for today’s market. Not worth the risk.

 

[andras]

@raytheon Ya dog this is a you problem. Got the cheapest insurance and now you’re going to find out why the cheapest isn’t the best option… with all the tech in a Tesla this doesn’t shock me at all

 

[raphacam]

@raytheon Geico paid for damages that went over the limits of what your insurance would pay, damages that YOU caused. So yes you're responsible for reimbursing them. Why should their insurance pay for damages that you're legally liable for?

 

[diadiemnhaban2023]

@raphacam This is NOT correct. You are giving false statements.

OP- contact State Farm. Your insurance should have had GIECO sign a property damage release to settle the claim. If they Willy nilly gave them the money, they did not protect you. In any case with property damage limit issues, the insurance company has the other party sign a release stating that you agree to not go after our insured and the money we pay settles the claim.

OP- ask state state if they had Geico sign a release. If they did, tell geico to go pound sand and let State Farm's know they are violating the release or if State Farm did not have the other party sign a release, tell them you that they owe you a duty and should had protected you and had a release sign. Also report them to the Florida department of insurance if they did not have a release signed.

 

[diadiemnhaban2023]

I do not know why I am being down voted when my comment is 100% true and a insurance industry standard. All adjusters know this. This sub sometimes either gives proper advice or wrong advice all the time

 

[kc9sgv]

@diadiemnhaban2023 First of all, I downvote anyone that complains about being downvoted.

Secondly, you don't think there's the slightest chance State Farm said "hey, can we settle this within policy limits"? And Geico said "nah fuck off, we are owed the full amount"?

Knowing about insurance and being able to apply your knowledge don't always go hand in hand. That's why you're being downvoted (plus me downvoting you for complaining about being downvoted)

 

[diadiemnhaban2023]

@kc9sgv The problem is that State Farm legally owes OP to defend them and protect them. If they did not have GEICO sign a release, that sets up for bad faith. That what I am saying and is standard with every carrier that I worked for and have worked with on either getting a signed release or having the other party sign a release.

 

[churchhub]

@diadiemnhaban2023 especially in super litigious florida, you think they would have had the claimant carrier sign a release

 

[kc9sgv]

@diadiemnhaban2023 Yeah no shit. You don't think this discussion was had? Between two of the biggest insurance companies in the world.

 

[diadiemnhaban2023]

@kc9sgv I am done arguing. The conversation probably did happen but like I mentioned, State Farm owes OP a release before paying out anything as OP post says State farm paid out 25k.

 

[ravenblue]

@diadiemnhaban2023 I work for a large name carrier. What probably happened is State Farm SENT the release, and Geico is now attempting to recover any excess before they sign it for payment. Happens all the time. My bet is State Farm actually hasn’t paid yet

 

[tranquilcs]

@kc9sgv I love being downvoted...

 

[jonnobody]

@raytheon Teslas are expensive to repair and parts can take forever to get. The shop must be Tesla structural certified. The costs don’t seem out of line. You were underinsured and owe for this.

 

[chrisallen87]

@raytheon I know this doesn't help you now, but with Teslas and $60k trucks on the road, I would suggest raising your liability limits to at LEAST $100,000 for property damage for the future.

We're doing our best to bring this up to any customer we see with lower limits especially state minimums (in my state $25k is the lowest you can legally have). I'm sorry this wasn't suggested to you before

 

[gabriel137]

@raytheon You didn’t have enough coverage to pay for the damage you caused and you think someone else should pay for that…

You can’t be serious. Time to take some personal responsibility for your actions.

 

[tranquilcs]

@raytheon I believe what OP is asking is, if there's a way to audit the repair cost and see if the other insurance didn't follow due diligence guidelines with cost of repair from body shop in case it was excessive?

 

[thetruthseeker1983]

@tranquilcs There's not really at this point, they wouldn't have paid out if they thought it was excessive.

 

[kwame1]

@raytheon I don't know about state farm but atleast in Colorado with Allstate , the difference to pay for 25k PD limits and 300k is only a few dollars. Definitely bump up that PD limit in the future.

 

[whereheis]

@raytheon I’m surprised your insurance didn’t ask for a PD release. Is that not a thing anymore?