A rear-end collision, ghosting and a claim denial: How to prevent insurance implosions

The sun was shining, we had our concert tickets, and in spite of stop-and-go traffic on the Eisenhower Expressway, circumstances augured for a nice afternoon in the city.

Boom.

Fortunately, the noise of the rear-end collision was the worst part. No one was injured, the driver apologized, we exchanged insurance information, took photos and went our separate ways.

Shortly after, I filed a claim with the other driver’s insurance company to get the estimated $1,475 in rear bumper damage fixed. All good.

And then, the adjuster called to say their client wasn’t returning phone calls.

The ghosting continued for weeks, apparently, until I received the bad news: The company “was unable to find valid coverage for this incident” and couldn’t pay my claim.

What the heck? And, what’s the lesson from this sad tale?

“It doesn’t happen often, but I would not say it’s unusual,” the American Property Casualty Insurance Association’s Bob Passmore said.

“There is language in every policy that requires the policyholder to cooperate and aid the insurer in investigating the claim. Technically, if the policyholder, or the driver covered under the policy is refusing to cooperate, the insurer could deny coverage for the claim,” noted Passmore, APCIA department vice president for personal lines.

“Usually, the policyholder/driver will cooperate when the insurer points this out to them.”

One takeaway from experts on minor crashes — you should err on the side of contacting police.

“If you’re involved in an accident, especially if you’re rear-ended, you should find ways to document it,” said state Sen. Seth Lewis of Bartlett, a State Farm insurance agent. Taking detailed pictures at the scene of the accident can prevent the “he said versus she said” scenario and provide insurance carriers with evidence to view, he noted.

“More robust than that is a police report. Photos and documentation coupled with a police report will then supersede the excuse of ‘we can’t get our insured’s side of the story,’” Lewis added.

Illinois State Police recommend drivers in collisions activate hazard lights, stay inside the vehicle and — if it’s drivable — pull over to the shoulder or a nearby parking lot. Drivers should call 911 to report the crash and follow instructions.

“Take a mental note of the vehicles involved in the crash; vehicle make, model, color, license plate, and driver description in the case the (other) vehicle leaves the scene of the crash,” Trooper Shannon Barrea said.

If an officer does not appear, motorists can still make a report within 10 days, she noted.

Passmore advises against being confrontational with the other driver at the scene.

“Exchange information but avoid discussing what happened or who was at fault; save that for talking to the police, or your insurer,” he said, adding that if anyone complains of injury at the scene, call 911 immediately.

So, what’s next? I could file a claim with my own insurer. But will that raise the rates even if I’m not at fault?

It depends on the company, but “general insurance industry practice is there should be no direct loss of discounts or direct rate increases due to a not-at-fault accident,” Lewis said.

“But as I tell my clients, it’s never good to have a claim on your record because there are so many different attributes that go into your insurance rates — that depending on algorithm the company is using — it could have an indirect negative consequence and you may see a small rate increase due to involvement in an accident.”

What about just letting the bumper damage go?

“Even if damage appears cosmetic, it's often worthwhile having a qualified repair professional inspect the vehicle,” AAA Regional Director of Public Affairs Nick Jarmusz said. “In some cases, an apparently minor impact can conceal damage beneath the surface that is not immediately visible. Understanding the full extent of the damage can help you make an informed decision about whether repairs are necessary.”

Finally, drivers with claim problems can submit complaints to the Illinois Department of Insurance Consumer Division. Stay tuned.

Got a comment or question? Drop an email to mpyke@dailyherald.com.