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How to avoid predatory subrogation after a car accident?

Posted: Mon Nov 02, 2020 7:59 pm
by Simon
Problem #1. The liability coverage of the at-fault driver has limits. Often these limits are not enough to cover all of your Property Damage claims such as repairs and diminished value. This is especially an issue when the at-fault driver only has the state's minimum liability coverage for Property Damage. In some states it's a very low amount. For example, in California, it's only $5,000 which is often not enough to satisfy all claims.

Problem #2. Your insurance company knows this and unethically (and sometimes illegally) rushes to subrogate repair costs from the at-fault company before you even had a chance to make your claims. But according to the legal "made whole" doctrine, you have claim priority, not them, and they must wait.


A. Repair the vehicle through your own insurance company. But at your favorite body shop, not theirs! Just have them pay for it under your Collision policy coverage. Obviously, this isn't an option if you don't have Collision coverage.

B. Tell your insurance company to cease all subrogation claim activity until your claims with the at-fault company are handled.

C. Tell the at-fault insurance company to not subrogate before your claims are handled.

D. Claim diminished value, your deductible, etc. with the at-fault insurance.