Can an insurance company dictate what they'll pay?

by John Bergstrom
(Eagan, MN)

AAA insurnace company is saying that although their insured backed into my daughter (my car), my daughter was partially at fault because she was parked illegally. (She was parked in the middle of a cul-de-sac and according to my municipality, they follow state law (MN Statute 169.35.)

My car's wheels should have been against the curb, therefore AAA says they'll only pay 80% of the damages!

Although no violation was issued, the reporting officer refuses to amend the accident report. (She entered a code saying my daughter was parked ilegally.)

What law is on the books that allows AAA to dictate the percentage they'll pay? That's really being impartial.....

Answer:

Fault is determine on percentage basis. See our section on determining fault.

The amount of fault is "subjective" and it is really a negotiation. You can settle for 5%, 10%,or even 20%.

If you daughter was noted on a police report as being parked illegally, then it is possible that you must eat part of the loss. However, it is a negotiation.

If your daughter was in a cul-de-sac, she was in a residential street (slow moving traffic). The driver backing has much more responsibility to look out and make sure vehicles are not behind!

Do not settle if you do not believe you are at fault. Backing into a parked object, that is there to be seen (an automobile) shows a big breach on the vehicle backing.

File a claim with your insurance company if you disagree. They will have to protect you and settle the loss. You can go to arbitration (see our section on arbitration) or you can take matters on your own hands and go to small claims court.

Good Luck,
Hector