Totalled Tesla Model Y Performance: First-party claim or third-party claim?

[n0thingtolos3]

Hello,

My 2022 Tesla Model Y Performance was involved in an accident on 11/8/22. Another car crashed into my car from the front while it was stopped at a left turn lane waiting for the red light. I notified my insurance adjuster, and based on the dashcam footage, he deemed that the other driver was at fault.

Two other cars were also damaged:

1. the at-fault driver side-swiped a car in front and damaged its side mirror
2. my car was pushed back from the impact and hit another vehicle that was stopped behind me, which damaged its front bumper and grill

I live in California and have American Family Insurance, and the at-fault party has Farmers insurance.

After the initial conversation with my adjuster, he recommended that we file a first-party claim and use our own collision coverage for the following reasons:

1. Expedite the process, since there are multiple cars involved and the at-fault party's insurance might take a long time to investigate
2. Unsure if the at-fault party has enough insurance coverage

I expressed that we are sure the other party is 100% at fault, and I would prefer to file a third-party claim.

Two days after the accident, my adjuster emailed the adjuster at Famers insurance to let them know we are considering going through Farmer's insurance for damages and rental car. They responded by saying it is not advised, since multiple vehicles are involved and liability is yet to be established.

My insurance eventually helped me tow my car to a Tesla-approved body shop on 11/15/22. As of today, 11/29/22, I have held off on a rental car since I was not sure if the car is repairable, which may take a few months. Since my own policy only covers 30 days of rental at $40/day, I figured it would be better to go through the at-fault party's insurance to ensure better rental coverage.

Earlier today, the body shop informed me that the car is over the threshold to be repaired and needs to be totalled.

Should I file a first-party claim through my own insurance, or file a third-party claim?

Any advice would be appreciated, TIA!

 

[Watts_Up]

NO, don't do this. Using your own insurance you will not be able:
- to sue the other party for medical expenses or pain and suffering
- to get extra rental car coverage
- to get diminished value payment
....

Insurance of course recommend what best for them !!!

Trying saving time is not a something to consider as priority.
As soon as you sign the papers with you insurance, they will start forgetting you.
You will have to constantly contact them to get any additional information.

Try getting the most of your insurance is certainly what you should consider
as insurance always try to cut corners especially if you try getting a new car
replacement instead of the depreciated value of your totaled car.

 

[Vinny809]

After dealing with something similar, I would say going first party is the easier route. Unless you’re a seasoned pro, the third party will always try to screw you over.

 

[hsfrank]

NO, don't do this. Using your own insurance you will not be able:
- to sue the other party for medical expenses or pain and suffering
- to get extra rental car coverage
- to get diminished value payment

Not true! As a 40 year Insurance Claims Professional, I can assure you of this,UNLESS your state has specific prohibitionions. You can always sue for unreimbursed expenses.

....

Insurance of course recommend what best for them !!!

Which is why you should always go first party if you have it. First party insurance has a stronger obligation to you and close that portion of the claim than third party. This is especially true if they determine the other party is at fault. that being said, if damage is minor (and it rarely is) it doesn’t pay to go first party.

Trying saving time is not a something to consider as priority.
As soon as you sign the papers with you insurance, they will start forgetting you.
You will have to constantly contact them to get any additional information.

I personally have had some situations where this is true, and many where it is not. It all depends on the person you get to handle your claim. No one can generalize about a specific company or a specific industry. It just doesn’t work that way.

Try getting the most of your insurance is certainly what you should consider
as insurance always try to cut corners especially if you try getting a new car
replacement instead of the depreciated value of your totaled car.

again, this is just a very general broad statement. It’s just not true. For example, my insurance company offers a 20% addition for a total vehicle at a very small premium.

 

[ewoodrick]

Do you have the police report that clearly indicates who is at fault?

 

[hsfrank]

Do you have the police report that clearly indicates who is at fault?

The OP indicated his company determined he was NOT at fault. Therefore he should definitely go with his own insurance (first party). They wont surcharge home for the accident and his only. out of pocket will be for the deductible and the increased rental.

 

[ewoodrick]

The OP indicated his company determined he was NOT at fault. Therefore he should definitely go with his own insurance (first party). They wont surcharge home for the accident and his only. out of pocket will be for the deductible and the increased rental.

Doesn't matter what his company says, it's the other driver and their company that could be the ones starting to sue.

 

[hsfrank]

Doesn't matter what his company says, it's the other driver and their company that could be the ones starting to sue.

True. Using his own insurance will be notice to them and IF the other party or his insurance (called subrogation) sue then his company will defend. In all probability once they have received notice of this type of claim they will order a police report.