I was recently involved in a car accident where I was rear-ended in late January by a driver insured by Maryland Auto Insurance. After the incident, I filed a claim with my insurance, Progressive, which determined that the other driver was at fault. I attempted to communicate with both Maryland Auto and the other driver, but I faced significant obstacles—Maryland Auto claimed the driver wasn’t returning their calls, while the driver asserted that Maryland Auto wasn’t responding to theirs.
With Progressive’s help, they made two attempts to contact Maryland Auto but were unable to get through and ultimately gave up. Feeling frustrated, I decided to consult several lawyers online to evaluate my options, and they advised me to utilize my insurance. This meant I would pay my $750 deductible, Progressive would cover the remaining costs, and they would pursue reimbursement from Maryland Auto through subrogation. However, Progressive informed me that subrogation attempts aren’t always successful, which meant I might end up losing my deductible entirely.
Given the visual damage to my car, I opted to pay the deductible. I ended up paying $750, and Progressive covered $761, with total repair costs around $1,500. The repairs were completed last week, and today I received a check for about $1,800 from Maryland Auto Insurance for the damages. They didn’t inform me of their decision to accept liability or that they were sending a check.
Now I’m faced with a dilemma: Should I inform Progressive about this check, or should I cash it without discussing it with them? I’m feeling pretty annoyed with Progressive, as they didn’t effectively assist me in getting in touch with Maryland Auto despite my repeated efforts. I worry that if Progressive finds out about the check during the subrogation process, they might adjust the amount, since they estimated the damages at $1,800 but the actual repairs were around $1,500—meaning I could potentially lose out on that extra $300. Additionally, there’s a chance that the subrogation process could fail, given Maryland Auto’s poor phone service, allowing me to keep the full amount.
What should I do?
TL;DR: I was rear-ended, faced hurdles from the other party to avoid liability, my insurance paid after I covered a $750 deductible, and I’ve now received a check from the other party’s insurance. Should I notify my insurance or cash it without telling them?
It’s understandable that you’re in a tricky situation. Here’s a breakdown of what you should consider:
Legal and Ethical Obligations: Generally, it’s important to be transparent with your insurance company. If you cash the check from Maryland Auto without informing Progressive, there’s a possibility that you could face legal issues later. Insurance companies typically require you to report any recovery you receive, especially since they may file a subrogation claim on your behalf.
Potential Impact on Subrogation: If you do cash the check and Progressive learns about it later (for example, if Maryland Auto informs them), it could jeopardize your relationship with them or lead to complications in the subrogation process. There’s also a chance they could require you to return the funds or adjust the amount they’re able to recover.
Amount of the Check: Since Progressive already paid for your repairs after your deductible, you might be tempted to simply keep the check. However, if Progressive does have a successful subrogation claim, they are entitled to recover the amount they paid out, which could affect how you handle the check; they’ll want to recover the funds from any reimbursement you received.
Communicate with Progressive: It may be beneficial to inform Progressive about the check you’ve received. This not only keeps everything above board but also gives them the opportunity to assert their rights in the subrogation process. You can mention that you’re a bit frustrated with their lack of follow-through and express your hope that they can still assist you in recovering your deductible.
Consider Consulting a Lawyer: If you’re still uncertain about what steps to take, you might want to consult with a legal professional who can provide guidance tailored specifically to your situation.
In summary, while it might be tempting to cash the check without informing Progressive due to your frustration, it’s generally advisable to disclose it to maintain transparency and avoid potential complications down the line.