Legal Question in Insurance Law in Connecticut

Is settling with the at-fault insurer and filing with my insurer wrong?

My car, while parked, was hit by a drag racer, who was arrested on several charges. His limit of liability for property damage is $25,000, and his insurer has already paid out about $10,000 of that to a business he ran into (and destroyed the whole front of the building). The auto shop where I have taken the car to get fixed has recommended that I settle with the at-fault insurer for around $1500 -- enough to cover my deductible and a rental car -- and then file the full claim with my insurer.

However, when calling my insurance company (and asking a ''general question''), they told me that it would be ''illegal'' to sign a waiver releasing the at-fault insurer's liability for the $1500 (which I want to do because I don't have rental car on my policy, and that will cost about $1000).

I looked through the relevant Conn. Gen. Stat. Section 38a-334, and don't see anything making it ''illegal''. I have skimmed my policy, and haven't found anything that seemed to say that this wouldn't be allowed either. I don't want to anger my insurance company, either, because they're going to have to pay around $10,000 to fix (or total) the car.

For those of you know car insurance law / policies, is signing a waiver usually bad?


Asked on 12/13/06, 7:57 am

1 Answer from Attorneys
Steven Basche Jacobs, Walker, Rice & Basche, LLC

Re: Is settling with the at-fault insurer and filing with my insurer wrong?

It is no so much that it is "illegal" but rather that by releasing the other driver's insurance company will prevent your insurance company from going after the other drivers insurance company for what ever they pay out to you. when your company pays out to you, they step into your shoes, and may try to get some money from the other company. Under your policy, there is probably a provision that you have to cooperate with your insurance company and not take action that would hurt them. If the 1500 is the full extent of your damages, you might be ok, but if it will be more than that to repair the car and rent one, you may be hurting your ability to make a claim on your own policy.

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Answered on 12/13/06, 8:31 am


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