Malone Insurance Agency - Bethel, Alaska

What if someone who doesn’t have insurance hits you?

Nancy — Thu, 03 Nov 2011 22:57:48 +0000

What Is Subrogation?

Based on A Post by Allison Ruuska on 12/10/2007 at 1:00 PM

Progressive.com

What happens after your insurance company pays for a loss that’s not your fault?

Using your own auto insurance for a claim that’s not your fault can leave you feeling a bit frustrated, but sometimes that’s your best option to resolve a claim quicker so you can return to your normal life. If you’ve been in this situation, then you’ve probably heard of subrogation.

Believe it or not, your claim doesn’t end once repairs are complete and the bills are paid. If you had to use your insurance for a claim for which you weren’t at fault, you and your insurance company are still entitled to receive the money paid on the claim. The process to recover that money is called subrogation.

When Does Subrogation Occur?

When your insurance company covers a loss that’s not your fault, they may pursue the at-fault party to recover payments made for your damages and injuries. Insurance companies can only subrogate other parties if their customer is not at fault for an accident.

For instance, let’s say Joe rear-ends your car but he doesn’t have insurance or his insurance company is taking too long to get back to you. Your car isn’t drivable, and you don’t want to keep asking friends to chauffeur you around town, so you decide to use your own insurance (from Progressive, coincidentally) to repair your car. You pay your $500 Collision deductible, fix your car, and are back to normal in a couple of weeks.

However, you still paid $500 out of pocket and your insurance company paid thousands of dollars for an accident that wasn’t your fault. In situations like this, your insurance company will subrogate Joe or his insurance company to recover the money paid for the accident – and that includes attempting to recover your $500 deductible for you.

Why Subrogation Is Important

Subrogation is a very important last step in the claims resolution process — and an important aspect of insurance. The successful recovery of money paid on claims allows companies to pass the savings to you, in turn helping to keep your insurance rates down.

Pirate Workers Compensation

Nancy — Thu, 21 Jul 2011 01:09:32 +0000

After many years at sea, a pirate decided to retire. Since he had suffered injuries on the job, he thought that he should collect on his worker´s compensation insurance. He had a wooden leg, a hook where his right hand should be and a patch over his right eye. The agent assured him that he would be compensated if the injuries were work related.

“How did you get the wooden leg?” asked the agent.

In a booming voice the pirate replied, “Me and me mates were on the high seas when the boom swang ´round and knocked me into the sea where a shark bit off me leg.”

The agent replied, “That is certainly work related. How did you lose your hand?”

“Well matey, me and me mates were on the high seas when the boom swang ´round and knocked me into the sea where a shark bit off me hand,” said the pirate.

“That´s also work related. Now how did you lose your eye?” asked the agent.

The pirate replied, “Well matey, I was laying on the deck one balmy day catching some rays when this seagull flew by and dropped his duty right in me eye!”

“What does that have to do with the loss of your eye?” said the agent.

“It were the first day with me hook!”

Farm Joke

Admin — Tue, 28 Jun 2011 21:05:33 +0000

Jeff’s farm was destroyed by a tornado. His wife Amy called their insurance agent and said, “The farm was insured for $200,000 and we want the money.”

“I’m sorry Amy, but it doesn’t work that way. We will determine the value of your farm and get you a new one that is worth about the same.” the agent said.

Amy paused and replied, “Well, in that case, I’d like to cancel the policy on my husband.”

Congratulations Teresa and Alex!

Admin — Tue, 28 Jun 2011 20:51:30 +0000

The big news around Malone Insurance Agency is that Teresa is now Mrs. Keller! Teresa Hannon married her long time beau Alex Keller at a private ceremony in Las Vegas, Nevada on June 10. Many Alaskan friends and relatives made the journey to help celebrate in style. Nancy said that it was a very nice event and was very happy she and her husband Randy attended.

The couple honeymooned in St. Lucia, an island in the Carribean for 10 days before returning to Alaska.

Teresa is now back at work and recuperating from all the festivities.

Congratulations to Teresa and Alex!