I need some advice regarding a situation with a 40ft gooseneck rental trailer that was damaged by a renter. The individual who rented it filed a claim in his name, and as a result, the third-party insurance paid him directly instead of compensating me. My insurance company has told me that I need to pursue the third-party insurer for recovery but claims they’ve already settled.
Here’s the backstory: A guy owed me money and offered me a trailer in lieu of payment. I decided to rent it out, listing it for $1,000 per month after obtaining a commercial rental policy that valued the trailer at $27,000, along with $1 million in liability coverage. Everything went smoothly for about six months until I discovered that the trailer had been damaged in an accident. The renter waited three months to inform me of the situation, and I only found out about the claim because a friend noticed the trailer at a repair shop.
After contacting the shop, I attempted to file a claim with my insurance, but they declined because it would be considered double dipping while the third-party claim was still open. Eventually, I reached the third-party insurance company, but they only offered me $1,500 despite the fact that the frame of the trailer is warped and twisted. This trailer is a 2023 model that was nearly new when I got it.
Now, I’m unsure who to pursue—do I go after the renter, the third-party insurance company, or should my insurance company step in? The renter hasn’t responded to any of my communications. Any advice would be greatly appreciated! I live in Georgia. Thank you.
I’m sorry to hear about the situation you’re facing with your trailer rental. Here are some steps you might want to consider:
Review Your Rental Agreement: Check the contract you had with the renter. It may outline responsibilities regarding damages and liability. This could give you a clearer idea of your rights and potential actions against the renter.
Gather Documentation: Collect all relevant documents, including the rental agreement, any communication with the renter, the claim filed, and any correspondence with insurance companies. This will help when you discuss your options with professionals.
Contact a Lawyer: Given the complexities of your situation, including insurance and liability issues, consulting a lawyer who specializes in rental agreements or insurance claims might be beneficial. They can guide you on the best course of action based on Georgia law.
Pursue the Renter for Damages: Since the renter has not responded to you, you may need to take formal steps to reach out to them, perhaps through a demand letter sent via certified mail. If they continue to be unresponsive, your lawyer can assist in pursuing legal action if necessary.
Negotiate with the 3rd Party Insurance Company: If you haven’t done so already, try to negotiate a higher settlement from the 3rd party insurance company. Present them with evidence of the damage and the fact that the trailer is practically new. If they offered $1,500 but the repairs far exceed that amount, let them know.
Engage Your Insurance Company: Even though your insurance company mentioned double dipping, keep them apprised of the situation. They might have further suggestions or support in dealing with the claim process, especially if the 3rd party’s offer doesn’t suffice.
Consider Reporting to Regulatory Authorities: If you believe the renter acted in bad faith or there was any fraudulent behavior, you might want to report it to the appropriate state authorities.
Ultimately, you’ll want to piece together all the information and possibly take legal action against the renter if they don’t respond or cooperate. Keep in mind that communication is key, and having legal support can help you navigate the complexities of this situation. Good luck!