Business Auto Claim Tips--Who Pays?

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H o r e n b e r g I n s u r a n c e S e r v i c e s, I n c.

Reporting the Claim

Q.	Who pays the medical bills if the accident was not our fault?
A.	If the accident was not your employee's fault, then the insurance on the vehicle that was at fault should ultimately pay the medical bills as well as for the "pain and suffering" of the injured employee. If the employee was using the vehicle for work, then you should also report the claim to your workers compensation insurance company. Your automobile insurance company should also be notified in case it is later alledged that your employee was at fault.
	In the best case scenario, the insurance for the other vehicle will pay the bills in a timely manner and your workers compensation company will not have to become involved. If the at fault insurance company drags their feet, however, you may have to ask your work comp carrier to pay rather than take the risk of the unpaid bills damaging your company's credit. In such a case, your insurance company will normally recover all or part of the payments from the at fault company.
Q.	Who pays to repair my car if the accident was not my fault?
A.	The advantages of using your own insurance include generally faster service and less inconvenience. With your insurance company, you do not have to prove who was at fault and you generally have more flexibility in using your preferred body shop. You also are likely to get more preferential treatment in the event of a dispute.
	The disadvantages of using your own company include the need to advance the deductible and the cost of a rental vehicle if not covered by your policy. If you go under your own insurance, your insurance company will try to recover the full amount paid, including your out-of-pocket expenses, from the at fault company. Be aware, however, that these recoveries often take many months and are not always successful.
Q.	Should I report small claims?
A.	If there is an injury or chance of injury, you must report the claim. Failure to report a claim could void your coverage. But if there is no risk of a claim for injury, you should consider the effect of a claim on your rates. At fault accidents almost always count against your driving record and can cause your premiums to increase.
	Say you have a minor accident that is your fault. Imagine there is $600 in damage and you have a $250 deductible. If you report the claim, you will receive $350. But if your rates go up $500 per year for the next three years, you would have been much better off paying the $600. Having drivers with tickets or having previous at fault accidents can increase this effect dramatically. If you are not sure if a claim should be reported, contact us for advice.