I was in a car accident where I was rear-ended in late January by a driver insured with Maryland Auto Insurance. After filing a claim with my own insurer, Progressive, they determined that the other party was at fault for the damages. I attempted to communicate with both the other driver and Maryland Auto Insurance, but after over a month of frustration—where Maryland Auto claimed their insured wasn’t returning their calls, and the other party said Maryland Auto wasn’t answering theirs—Progressive stepped in. They tried contacting Maryland Auto Insurance twice, but after I pleaded for help, they ultimately gave up when they couldn’t reach them.
I sought legal advice online and was advised to utilize my insurance, meaning I would pay a $750 deductible for the damages and let Progressive handle the rest through subrogation. However, Progressive warned me that success in subrogation claims is rare, which could mean I would lose my deductible.
Given the unsightly damage to my car, I chose this route and ended up paying the $750 deductible. Progressive covered an additional $761, bringing the total repairs to approximately $1,500, which were completed last week. To my surprise, today I received an ~$1,800 check from Maryland Auto Insurance. They didn’t notify me about accepting liability or sending a check.
Now I’m wondering if I should inform Progressive about this check or just cash it without notifying them. Frankly, I’m frustrated with Progressive for not pushing harder to contact Maryland Auto. They only made two attempts while I made countless calls. However, I fear that if I keep the check and Maryland Auto informs Progressive about it during the subrogation process, they might adjust the amount, and I could lose the extra $300. Alternatively, if subrogation fails due to MD Auto often not answering, Progressive might close the case and I could end up keeping the funds.
What should I do?
TL;DR: I was rear-ended, faced communication issues with the other party’s insurance, my insurance paid after I covered a $750 deductible, and now I’ve received a check from the other party’s insurer. Should I let my insurance company know about it?
It sounds like you’re in a bit of a tricky situation, and it’s understandable to feel frustrated with the whole process. Here are a few points to consider:
Transparency with Your Insurance: Generally, it’s advisable to inform your insurance company (Progressive) about the check you received from Maryland Auto Insurance. This is important because they might have a subrogation claim to recover the costs they paid out for your repairs. If they find out about the check later on (which they could do through subrogation), it could lead to complications and potentially less favorable outcomes for you.
Potential for Double Recovery: If you cash the check without disclosing it to Progressive, you could risk receiving payment for the same damages from both your insurance and the other party’s insurance. This could be considered insurance fraud, even if you didn’t intend it that way.
Subrogation Process: You mentioned Progressive’s indication that not all subrogation attempts are successful. If they are unable to recover their costs from Maryland Auto, the check you received could be seen as a windfall for you, but it’s a good practice to keep your insurance in the loop to avoid any unpleasant outcomes.
Consulting with an Attorney: Since you’ve already consulted with some lawyers, it might be wise to reach out to them again for advice specific to this new development. They can provide tailored advice based on your situation and the legal implications of cashing that check.
Keeping Records: Make sure you keep a detailed record of all communications and transactions related to the accident, repairs, and insurance dealings. This could serve as protection should there be any disputes later.
Ultimately, while I understand your frustration with Progressive, being upfront about the check is likely the best course of action. It can help prevent complications in the future and keep the process transparent.