New Jersey Lawyers - New Jersey attorneys
For Example: You file a claim with your insurer for $2,000 in damage under collision. After applying your $750 collision deductible, your insurer pays you $1,250. The insurer pursues subrogation (reimbursement) from the at-fault person’s insurance company and recovers 80 percent of the loss. Your insurer will reimburse you 80 percent of your deductible, or $595, for a total payment on your claim of $1,845. If you filed the claim directly with the at-fault person’s insurance company rather than under collision, you would be paid 80 percent of $2,000 or $1,600.
You should also be aware that your percentage of fault will be considered when reimbursing you for other accident-related costs, such as rental car charges. However, if you are found to be more at fault than the other driver, (i.e., if you were 80 percent at fault and the other driver was 20 percent at fault), you would not be entitled to collect damages from the other driver’s company.
What if you disagree with the percentage of negligence assigned to you?
All auto insurers must have an Internal Appeal Process in place for the review of disputed claims. In the event that a settlement cannot be reached through the Internal Appeal Process, the company must inform the claimant of their right to contact the Department’s Office of Insurance Claims Ombudsman to request a review of the claim and the appeal determination. (For contact information, see the back cover of this guide.)
However, police report details or opinions and extenuating circumstances exist for nearly every accident and there are times when a dispute between the drivers involved as to how an accident occurred cannot be resolved. In this situation, determining the facts of the accident would be up to a court of law. It should be remembered that filing an internal appeal or a complaint through the Department does not negate your right to file suit to ultimately resolve the claim dispute. Consult an attorney or your County Court Clerk for more information on filing a lawsuit.
Remember...
Under the law, in order to recover damages from another person or his insurance company, an individual’s percentage of fault for the accident cannot be more than the individual from whom damages are sought.