Is that a legal practice for insurance company to hold up issuing repair check until all claims are received?

by Ching
(IL, Lake County)

My car was rear ended in a multiple cars accident. There were 4 cars in the accident. The insurance company of the driver at fault has to pay for all repair expenses. I got a letter from the insurance company saying:

The property damage arising out of this accident may exceed the property damage limits of insured's policy. The insurance company will not be able to issue any payments for property damage until all claims have been received. They suggested that I file through my own insurance company for my car damages and my insurance company will contact them to collect the damages.

Ching


Answer:


Hello Ching,

Yes, it is legal. They are putting you on notice that they many not be enough to pay anyone. Your statement: “The insurance company of the diver at fault has to pay for all repair expenses” is incorrect.

The insurance company only has to pay their limit of liability. If your repairs are more, then you or you insurance company will have to step in and go after the at fault party (not their insurance company).


As always, it is very important that you talk with a local attorney!
Good Luck,
Auto Insurance Claim Advice