I was in a car accident where I was rear-ended back in late January by a driver insured by Maryland Auto Insurance. I filed a claim with my insurance company, Progressive, and they determined that the other party was at fault for the damages. However, I encountered a lot of frustration trying to work with both the other driver and Maryland Auto Insurance. After more than a month of back and forth, with Maryland Auto saying the other driver wasn’t returning their calls and the driver claiming Maryland Auto wasn’t picking up, Progressive attempted to step in. They called Maryland Auto twice at my urging but were unable to reach them and eventually gave up.
I consulted several lawyers online to gauge my options, and they all suggested I go through my insurance. This meant I would pay my $750 deductible for the damages, and Progressive would cover the rest while trying to recover the costs through subrogation. Upon speaking with Progressive, I learned that subrogation rarely succeeds, and I could potentially lose my deductible entirely.
Ultimately, I decided to go ahead with this path because the damage to my car was quite noticeable. I paid the $750 deductible, and Progressive covered an additional $761, bringing the total repair cost to around $1,500. The repairs were finally completed last week, and today I received an ~$1,800 check from Maryland Auto Insurance without any prior notification or acknowledgment of liability from them.
Now I’m left with this $1,800 check while my car is already fixed and I’ve paid my deductible. Should I inform Progressive about this check or just cash it? To be honest, I’m frustrated with Progressive for not being more proactive in contacting Maryland Auto, while I had to do all the legwork myself. However, I’m also worried that if I don’t tell them, Maryland Auto might report it during the subrogation process, which could lead to them adjusting their initial damage estimate. I might even lose that extra $300 if things don’t go through well with subrogation, especially since Maryland Auto has a notoriously poor communication process.
What should I do?
TL;DR: I was rear-ended and faced major communication issues with the other party’s insurance. My insurance (Progressive) covered the damages after I paid my deductible, and now I’ve received a check from the other party’s insurance. Should I inform Progressive about the check?
It’s understandably a frustrating situation, and it’s tempting to keep that check, especially after all the hassle you’ve been through. However, it’s important to consider a few key points:
Obligation to Inform: Most insurance policies include clauses that require you to inform your insurer about any payments you receive related to a claim they covered. Failing to disclose the $1,800 check could be seen as insurance fraud, which can have serious legal consequences.
Subrogation Process: Since your insurance company (Progressive) paid for the damages (minus your deductible), they have a vested interest in the subrogation process. If they find out you’ve received reimbursement directly and not told them, they might pursue action against you. If they’re able to recover the full amount from MD Auto, they might seek to reclaim a portion of that, which could include your $750 deductible.
Potential Issues with MD Auto: If MD Auto has already issued you a check, they may not have any direct communication with Progressive regarding the check you received, especially if they have issues with communication. However, it’s still possible that Progressive will find out through other means.
Keeping It Transparent: The best course of action is to inform Progressive about the check. Let them know you received payment from MD Auto, and they may be able to guide you on how to handle the situation. Transparency can help avoid legal issues or complications down the line.
Consulting a Lawyer: If you’re still uncertain about this, it may be worth consulting a lawyer who specializes in insurance or personal injury claims for tailored advice. They can provide guidance based on your specific circumstances and local laws.
In summary, while the idea of cashing the check without informing Progressive is tempting given your frustrations, being upfront about it is the safest route to avoid potential complications in the future.