After a car or motorcycle accident, when must the adverse party's insurance company pay for property damage and rental?
Because the person at fault is not obligated to make any payments to you until liability (extent of fault) has been established, his insurance company is entitled to a reasonable time within which to conduct an investigation as to who is at fault and to what degree. They can also have a reasonable time to determine if there is insurance coverage for their insured. Sometimes it gets resolved quickly and other times it takes more time. Until these issues are resolved, the insurance company does not have to provide you with payment for property damage or for a rental car due to your motorcycle or car accident.
No one can force the party at fault's insurance company to do anything without a court order, which requires filing suit and going through the entire litigation process leading to an ultimate jury, court or arbitration decision. Some insurance companies determine fault quickly; some take their time no matter how hard our Phoenix car accident law firm presses them. That is why no two cases are handled the same way, and cannot be compared.
This is why, in the event of a car, motorcycle, or other auto accident, and if your insurance company provides property damage, at times you may be better off filing a claim with your own company. After they pay you, they will then subrogate (go against) the defendant's insurance company for reimbursement. Unfortunately, you will have to pay a deductible, which is reimbursable from the defendant at the end of your case, but may be payable to you earlier. However, because you have paid a premium for this service, your own insurance company must promptly appraise the damage and issue payment, without regard to who is at fault in the accident. They do not, however, have to get you a rental car unless you have paid a premium for that coverage when you purchased your insurance policy.
Additionally, another reason to go to your own insurance is that, while the other company is investigating liability (fault) you may have to wait a long time and the law imposes a "duty to mitigate damages", which means, for instance, that you cannot keep accumulating charges such as storage for your car, if there is a liability issue that takes time to get resolved. If you advance the property damage deductible and fault is eventually resolved in your favor, you will then be reimbursed by the at fault party's insurance company.
In any case, it is vital to hire an experienced car and Arizona motorcycle accident lawyer.
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