Double paid on a claim | Do I keep the money?

by Jay
(Orange County)

My car was hit and totalled while parked. My insurance company paid me for the claim less the 500 deductible.

The other parties insurance ended up sending me a check as well.

Seems like they made a mistake but I am wondering if they can sue me to get the money back or do they just lose out on the mistake they made.

Answer:

Hello Jay,

Unfortunately, your own insurance company can sue you for the money back. In your policy, you must likely have a clause called Right of Subrogation. Please see: http://www.auto-insurance-claim-advice.com/Subrogation-of-Rights.html

That clause gives the insurance company rights to recover if they pay you. You agree under that clause to help the subrogation process and not prevent them from collecting.

Since your insurance company paid, they will likely have a cause of action against you.

Note, you still are entitled to your deductible so you can ask for a check for the amount of the deductible you paid.

I hope this helps,

Good Luck
http://www.auto-insurance-claim-advice.com/