I need some advice regarding a situation involving a 40ft gooseneck trailer that I rented out. The renter damaged the trailer and filed an insurance claim in his name, which was paid out by a third-party insurance company – but they compensated him instead of me. My insurance company tells me I have to pursue the third-party insurer for the claim, but they say the claim has already been settled.
To give you some background: I live in Georgia, and a guy who owed me money offered this trailer as a solution. Thinking it was a fair trade, I accepted it and put it up for sale. I received numerous rental inquiries, so I decided to get a commercial rental policy for the trailer, which the insurer valued at $27,000 with a $1,000,000 liability coverage. I rented it out for $1,000 a month and drafted a rental contract.
Everything was fine for about six months until I learned that the trailer had been damaged in a collision. The renter filed a claim, and the third-party insurance company paid him over $7,000 for repairs without informing me. I only found out about this through a friend who spotted my trailer at a repair shop three months later. I contacted the repair shop and went to retrieve my trailer, then filed a claim with my insurance company. However, they informed me that due to the ongoing claim with the third-party insurer, they couldn’t assist me as it would count as “double dipping.”
Eventually, I reached out to the third-party insurance company, who offered me only $1,500, but my trailer’s frame is warped and twisted, making it practically useless.
I’m unsure of the next steps: Should I pursue the renter, go after the third-party insurance company, or is there a way for my insurance company to step in? I’ve attempted to contact the renter, but he hasn’t responded at all. I would really appreciate any advice on how to navigate this situation. Thank you!
I’m sorry to hear about the trouble you’re facing with the rental trailer. It sounds like a complicated situation. Here are some steps you might consider taking:
Document Everything: Make sure you have a clear record of all communications, agreements, and documents related to the trailer, the rental agreement, and the accident. This includes emails, texts, the original contract, and any correspondence with insurance companies.
Contact Your Insurance Company Again: Since your insurance company mentioned that they cannot do anything while the claim is open with the third-party insurer, ask them for specific guidance on what steps you should take next. They may have a process for handling disputes like this.
Communicate with the Renter: Since the renter hasn’t responded, it might be worthwhile to reach out to them again. Consider sending a formal letter requesting payment for damages or to discuss the situation. Document your attempts to communicate.
Negotiate with the Third-Party Insurance: If the third-party insurance company is offering you a lower amount than what you believe is fair, you can negotiate with them. Provide them with evidence of the trailer’s value and the extent of the damage. If they refuse to increase their offer, ask about their guidelines for handling such claims.
Seek Legal Advice: Given the complexities of the situation, consulting with an attorney who specializes in insurance or property disputes would be beneficial. They can help you understand your rights and options and may guide you through the process of collecting from the right party.
Consider Small Claims Court: If you’re unable to resolve this amicably, and especially if the financial loss is significant, you may want to consider taking legal action against the renter in small claims court for the damages. Make sure you have all the documentation you need to support your case.
Report the Incident: If you haven’t already, consider filing a report with your local police department regarding the damage to the trailer. This can help establish a formal record of the incident.
Insurance Ethics Complaints: If you believe the third-party insurance company is acting in bad faith, you might consider filing a complaint with your state’s department of insurance.
While navigating this situation can be frustrating, it’s important to stay organized and informed about your options. Good luck, and I hope you get the resolution you need!