Uninsured Motorist Property Damage Coverage

by Eunice
(Elkton, MD)

My insurance company is covering my auto damages under (UMPD), The company gave me a rental car until my car was repaired, however, they placed my name and my lenders name on the check. The repair shop directed me on what to do. They mailed the information that was needed from them to me. I had to sign the check, send it to the lenders with information from the adjuster and repair shop and then the lender would process and forward the check to the repair shop for me to be able to get my car.
When I checked with the lender they said they have 24 - 48 hours for the information to be placed on the computer then 2 - 6 days for the processing, NO exception, that is their procedure. In the meantime I am without transportation for several days, unless I pay for the rental car myself. The adjuster did tell the repair shop that if they didn't receive the check in two days, they would send another check directly to them so I could get my personal car. Should I still be covered under UMPA for a rental car since the insurance company caused my continued loss of use with this process?

I thought that my name and the repair shop name would be on the check.

Answer

Well, the policy spells out their duties to the line holder (the bank). One of the ways they must do this is by making sure that either the car gets fixed or the loan is repaid.

If you accept the money to be paid to you, the insurance company has no other option than to pay you and the bank directly (by naming them on the check).

The other option is to pay the body shop directly (ensuring that the vehicle is fixed). Now, different insurance companies do different things.

They will argue that your car is no longer damaged so they will not have to pay for the rental car.

There are different things you can do.

1. Insurance adjusters have a lot of power over bodyshops. They work with them daily and they send a lot of business to them (think about it). Having an adjuster ask the bodyshop to release your car without payment is not that much of a stretch. The bodyshop can simply give you your car and wait for the check.

2. If the bodyshop does not want to help you out, ask the adjuster to send a "field rep" to the bodyshop. They can issue "field checks". These are hand made. The field rep (the people from the insurance company that goes and inspect vehicles) have the ability to simply go to the shop and pay the amount.

3. You can remind the adjuster that you are dealing under the UMPD section of the policy. Under such terms, you are entitled to be paid for whatever is owed to fix your car and you are much less restricted under the UMPD than the Collision coverage. If you were going after the person that hit you, they would have to pay you rental until the car was back in your hands as you had it.

I hope this helps,
Anne.