I was involved in a car accident at the end of January when I was rear-ended by a driver insured by Maryland Auto Insurance. I filed a claim with my own insurance company, Progressive, which determined that the other driver was at fault for the damages. After reaching out to both the other driver and Maryland Auto Insurance, I encountered a lot of delays. Maryland Auto claimed that their insured wasn’t returning calls, and the other driver said they weren’t getting responses from Maryland Auto either. Progressive attempted to contact Maryland Auto twice after my repeated requests but ultimately gave up when they couldn’t get through.
I consulted several lawyers online to explore my options and they suggested using my insurance—meaning I would pay my $750 deductible for the repairs, while Progressive would cover the remaining costs and attempt to recover the deductible through subrogation. However, Progressive warned me that not all subrogation attempts are successful and that, in many cases, they aren’t, which would mean I could lose my deductible entirely.
Given the noticeable damage to my car, I decided to go ahead and pay the deductible, which amounted to $750, and Progressive covered an additional $761 (the total repair cost was around $1,500). The repairs were completed last week, and today I unexpectedly received an approximately $1,800 check from Maryland Auto Insurance for the damages. They didn’t contact me beforehand to acknowledge liability or inform me about the check. Now that my car has been repaired and I have already paid my deductible, I have this check in hand.
Should I inform Progressive about the check, or should I cash it without telling them? I must admit, I feel frustrated with Progressive for their lack of assistance in reaching out to Maryland Auto; they gave up after only two calls, while I repeatedly tried for weeks. However, I’m concerned that if Progressive finds out during the subrogation process, Maryland Auto might adjust the claim amount, especially since they estimated damages at $1,800, but my repairs only cost $1,500. There’s also the possibility that the subrogation process may fail due to Maryland Auto’s poor communication, in which case Progressive might close the case, allowing me to keep the full amount.
What should I do?
TL;DR: I was rear-ended, faced delays with the other party’s insurance, and after paying my deductible, my insurance covered the repairs. I now received a check from the other party’s insurance. Should I inform my insurance about it?
It sounds like you’re in a tricky situation, and I understand your frustration with the whole process. While it’s tempting to keep the check without informing Progressive, here are some important considerations:
Insurance Agreement: Most insurance policies have terms that require you to inform them of any payments you receive related to a claim. Not doing so could potentially be considered insurance fraud, which can have serious consequences.
Subrogation Process: If Progressive has already paid out and you receive a payment from the other party’s insurance, they may have a right to that money through the subrogation process. Even if you’re frustrated with how they handled your claim, it’s important to remember that they still acted in your best interests by covering your damages.
Amount Adjustment: If you inform Progressive about the check, they may want to pursue the subrogation process. Depending on what they recover, they might take back the deductible you paid if they recover the full amount or they might negotiate the total recovery with MD Auto. This could result in you receiving the $300 difference if they recover more than what was spent on repairs.
Open Communication: Being upfront with your insurance about the check may ultimately save you from future complications. They can advise you on the best way to proceed and will likely appreciate your honesty.
Legal Considerations: Since you’ve consulted with lawyers already, it may be worth seeking their advice again based on this new development. They can provide guidance on the best course of action given your specific circumstances.
In summary, it’s generally best to notify Progressive about the check. While their lack of responsiveness was frustrating, being transparent about the payment is likely the most prudent route to avoid complications down the line.