Legal Question in Insurance Law in Maryland

Being given the run around

I was in a car accident on Febuary 11, 2002 in which the other driver was 100% fault. I filed my claim with his insurance comany - the Maryland Auto Insurance Fund. First they sent an adjuster to assess my car's damage -- about $7,000. Once the car was taken apart, it was clear that the car was beyond repair and they deemed it ''totalled'' after a month of dragging their feet with the claim. The driver only carried $15,000 of liability and my car's value exceeds that. I filed my claim with my company - Allstate. Their adjuster says it is fixable with reconditioned parts. The body shop states that the vehicle is beyond repair -- and if repaired, is no longer a safe vehicle. I will not drive with my 3 month old infant in an unsafe car and I will sue them before I do so. I believe the cost of the repairs, diminished value, the rental car plus the car storage at the body shop exceeds the value and it should be totalled. It is now six weeks later -- I've gotten nowhere with my claim and I am losing patience. Are they treading on ''bad faith'' territory? Do I need to hire a lawyer to get this whole mess resolved? Are there lawyers who specialize in fighting car insurance companies?

Sincerely,

Frustrated in Maryland


Asked on 3/18/02, 7:56 pm

2 Answers from Attorneys
James P Koch Law Offices of James P. Koch

Re: Being given the run around

The answers to your questions are "yes", "yes", and "yes". Allstate's claims practices are notorious. Unfortunately, Maryland law does not recognize "first party" bad faith. As the insured, you have a "first party" claim, so if you sue, the most you can recover is the amount to which you are entitled to under your contract of insurance, which I imagine is the depreciated value of the vehicle on the date of the accident. You will have to pay your own attorney's fees if you sue, and punitive damages are not available, a fact that Allstate is well aware of. We need first party bad faith in Maryland, but the only way this is going to change is if enough people contact their local elected officials and demand that the law be changed. If you want to hire a lawyer to sue Allstate, feel free to contact me, as I may be able to refer you to someone with litigation experience against Allstate who is willing to accept your case.

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Answered on 3/18/02, 8:43 pm
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Being given the run around

An underinsured claim is required by law to be dealt with

timely just as a third party claim. However, a claim of bad faith in dealing

applies only to third party claims. Other avenues of redress may apply

in lieu of litigating. Allstate strikes upon its own insured once again....

It's time to totally revamp Maryland's automobile insurance laws. Maryland is one of the most

regressive states in the Nation in regards to automobile insurance, automobile

property, and automobile injury law...IT'S TIME FOR A CHANGE.

G. Joseph Holthaus

(410) 799-9002

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Answered on 3/19/02, 8:57 am


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