Geico subrogation claim

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StevieG72
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Geico subrogation claim

Post by StevieG72 » Sun Jul 14, 2019 3:19 pm

So thought some folks may find my experience helpful... I was involved in a not at fault accident in June, rear end collision. Fairly minor accident, just a tore up bumper on my SUV other car is likely totaled with extensive front end damage. No injuries.

The at fault party has insurance with Direct General insurance. I did a little research and found them to be a pain to deal with and also it is not uncommon for them to drop their insured and deny the claim.

Accident happened on a Friday afternoon, I made a claim online with Geico on Sunday and scheduled an appointment at a local Xpress service center. Xpress service centers are one stop shops for collision claims, adjuster, bodyshop, and rental car all at one location.

I have a deductible of $1,000 and do not carry rental insurance. I have to pay deductible and rental expenses out of pocket and Geico will attempt to recover from the at fault drivers insurance company. I decided to rent an econobox to keep rental costs low in case I got stuck with rental charges, it was refreshing to drive a car with good gas mileage vs my SUV however the road noise was ridiculous, and it felt like a death trap on the road! Also rental company has a special rate for Geico customers that significantly lowers the rental price to $17.50 per day for the econobox.

Adjuster decided that bumper should be replaced vs. repaired due to compression of the bumpers step pad that could not be repaired. I doubt at fault insurance company would have suggested bumper replacement, their claim process is to send in pictures and video for damage review.

Drop car off on Tuesday morning, work is complete Friday. Pay deductible and rental and I am on my way.

Fast forward a few weeks and I get a call from Geico stating that Direct General has denied the claim. The policy was either not in place at time of accident, or they dropped the insured. ( they do the latter frequently) <---- i know this doesn't sound legal but apparently it is, for example if the insured has someone living at the same address not listed on the policy they can deny the claim and drop the policy.

Geico will pay claim with zero deductible under uninsured motorists coverage.

So if I chose to initially proceed with Direct General, I likely would of jumped through some hoops just to be back to square one and dealing with Geico. In addition, I was a bit surprised that I would have to pay deductible and rental fees since it was a not at fault accident. If I had rental coverage with Geico that would have been paid upfront.

This is my first not at fault accident that I decided to let my insurance company handle. Overall I am pleased, vehicle repaired quickly without too much aggravation.
Fools think their own way is right, but the wise listen to others.

LISD
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Re: Geico subrogation claim

Post by LISD » Sun Jul 14, 2019 4:45 pm

If you want to add a CDW (collision deductible waiver) to your policy, Geico will pay the deductible if the 'At Fault' party has no insurance.

If you have CDW, your policy statement will say 'WAIVER' on it.

The State allows drivers to drive without insurance, and we (responsible citizens) are expected to pay additional insurance to makeup for the fact that the State is not doing their job - making sure everyone has insurance. It seems to me that a class-action lawsuit should be filed against the state to force them to pay for all uninsured motorist damage . Maybe then the States would take their responsibility seriously. In a country full of Lawyers, I'm surprised this hasn't already happened. Of course the Insurance companies wouldn't be interested in filing lawsuits because Uninsured Motorist Coverage is a money-maker for them.(Rant Over)

SimonJester
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Re: Geico subrogation claim

Post by SimonJester » Sun Jul 14, 2019 5:17 pm

I would just let GEICO pay your claim from uninsured motorists and they can try and recover from the other party. You can also sue in small claims for the rental costs if GEICO doesnt reimburse you for that as well...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

TropikThunder
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Re: Geico subrogation claim

Post by TropikThunder » Sun Jul 14, 2019 5:22 pm

This scenario is why those who advise not to tell your own insurance company are so misguided.

travellight
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Re: Geico subrogation claim

Post by travellight » Sun Jul 14, 2019 6:53 pm

TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
What do you mean?
364

TN_Boy
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Re: Geico subrogation claim

Post by TN_Boy » Sun Jul 14, 2019 8:22 pm

We've always filed with our insurance company.

Why should I waste time with the at-fault driver's insurance company? Let the people at my insurance company earn their pay doing that.

Being out of pocket for a few months until your insurance company gets the deductible and rental car expenses back shouldn't be an issue.

SovereignInvestor
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Re: Geico subrogation claim

Post by SovereignInvestor » Sun Jul 14, 2019 8:59 pm

LISD wrote:
Sun Jul 14, 2019 4:45 pm
If you want to add a CDW (collision deductible waiver) to your policy, Geico will pay the deductible if the 'At Fault' party has no insurance.

If you have CDW, your policy statement will say 'WAIVER' on it.

The State allows drivers to drive without insurance, and we (responsible citizens) are expected to pay additional insurance to makeup for the fact that the State is not doing their job - making sure everyone has insurance. It seems to me that a class-action lawsuit should be filed against the state to force them to pay for all uninsured motorist damage . Maybe then the States would take their responsibility seriously. In a country full of Lawyers, I'm surprised this hasn't already happened. Of course the Insurance companies wouldn't be interested in filing lawsuits because Uninsured Motorist Coverage is a money-maker for them.(Rant Over)
Isn't it illegal in virtually every state to drive without insurance unless one posts a bond for minimum financial responsibility limits?

Enforcement is the issue, many will do it anyway. Just as larceny is illegal and it still happens.

Turbo29
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Re: Geico subrogation claim

Post by Turbo29 » Sun Jul 14, 2019 9:14 pm

TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
I agree. My minor accident experience:

Was sitting at a red light and was clipped by a car trying to get into the left lane. Filed a claim with my company (Progressive) and got the vehicle fixed, total cost of repairs ~$1700. I had to pay the deductible ($500) when I picked up my car from the body shop.

Exactly a month later their company (Farmer's) admits responsibility; Progressive mails me a check for my deductible about 3 weeks after that.

Just the other day I was on the Progressive website and noticed the claim was still open so I messaged the adjuster to ask why. He replied that the claim was in arbitration over the cost of the repairs. This means to me that Farmer's thinks Progressive allowed too much for the repair and wants to pay less.

Had I not filed a claim with my company and instead pursued it directly with the other company (Farmer's) I can see now that they would have tried to lowball me on the price of the repairs and probably been a general pain to deal with.
It is by the goodness of God that in our country we have those three unspeakably precious things: freedom of speech, freedom of conscience, and the prudence never to practice either of them. --M. Twain

BluesH
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Re: Geico subrogation claim

Post by BluesH » Sun Jul 14, 2019 9:34 pm

SimonJester wrote:
Sun Jul 14, 2019 5:17 pm
I would just let GEICO pay your claim from uninsured motorists and they can try and recover from the other party. You can also sue in small claims for the rental costs if GEICO doesnt reimburse you for that as well...
Totally agree. FYI, I had the same claim (rear-ended on freeway) with GEICO earlier this year. The procedure, assuming the other party has valid insurance, is that yes, you have to pay the deductible up front, and GEICO picks up the rest. However, assuming GEICO is successful in subrogation of the claim to the other company, they then reimburse you for the deductible. If they had expenses that weren't covered by the other company, they take those out first, leading to a reduced reimbursement. In my case, despite the fact that the other party had an insurance company I had never heard of, I got 100% reimbursed for the deductible. Took 2 or 3 months, though.

ETA - oh, and the other company at first disputed the amount of claim, saying that some of the repairs were excessive. That's why it took a few months. But eventually GEICO prevailed, which is why I got 100% reimbursed.

TropikThunder
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Re: Geico subrogation claim

Post by TropikThunder » Sun Jul 14, 2019 9:59 pm

travellight wrote:
Sun Jul 14, 2019 6:53 pm
TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
What do you mean?
There are frequent threads on here where someone is in a not at fault accident, asking if they should tell their insurance company. Without fail, someone will say they never tell their insurance company, they always go through the other person‘s insurance. And someone else says well why do you have insurance if you’re not going to use it etc etc.

boglerdude
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Re: Geico subrogation claim

Post by boglerdude » Mon Jul 15, 2019 1:55 am

If not at fault, but your insurance gives you a check either through your collision coverage or uninsured motorist, will they raise rates to get the money back? Any laws about it or can they do whatever they want. I suppose if they raise, you shop around and hopefully some other ins co wont penalize for having not-at-fault on your CLUE report?

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dwickenh
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Re: Geico subrogation claim

Post by dwickenh » Mon Jul 15, 2019 6:24 am

travellight wrote:
Sun Jul 14, 2019 6:53 pm
TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
What do you mean?
It is clear that informing your own Insurance Company is always the best choice.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

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dwickenh
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Re: Geico subrogation claim

Post by dwickenh » Mon Jul 15, 2019 6:25 am

boglerdude wrote:
Mon Jul 15, 2019 1:55 am
If not at fault, but your insurance gives you a check either through your collision coverage or uninsured motorist, will they raise rates to get the money back? Any laws about it or can they do whatever they want. I suppose if they raise, you shop around and hopefully some other ins co wont penalize for having not-at-fault on your CLUE report?
Just make sure the guy that hits you has Insurance, and only buy stocks that are going to go up!!!

:sharebeer
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

tea_pirate
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Re: Geico subrogation claim

Post by tea_pirate » Mon Jul 15, 2019 7:03 am

TropikThunder wrote:
Sun Jul 14, 2019 9:59 pm
travellight wrote:
Sun Jul 14, 2019 6:53 pm
TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
What do you mean?
There are frequent threads on here where someone is in a not at fault accident, asking if they should tell their insurance company. Without fail, someone will say they never tell their insurance company, they always go through the other person‘s insurance. And someone else says well why do you have insurance if you’re not going to use it etc etc.
What's more, most insurance companies have a clause in your policy stating that they can drop you if you don't notify them of an accident that you were involved in.

SimonJester
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Re: Geico subrogation claim

Post by SimonJester » Mon Jul 15, 2019 7:25 am

dwickenh wrote:
Mon Jul 15, 2019 6:24 am
travellight wrote:
Sun Jul 14, 2019 6:53 pm
TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
What do you mean?
It is clear that informing your own Insurance Company is always the best choice.
I would caveat this with the following... If you do not have full coverage on your own vehicle your insurance company will tell you to file a claim with the other parties insurance carrier. Even with full coverage your insurance company may suggest filing with the other party to avoid a claim on your own policy / CLUE report.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

miamivice
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Re: Geico subrogation claim

Post by miamivice » Mon Jul 15, 2019 8:10 am

While I am glad it worked out for the OP, I have had numerous success stories equally successful filing a claim with the other parties insurance. '

I am impressed that his uninsured motorist coverage has a $0 deductible for damage caused by an uninsured driver.

OP: You were rear ended. How much did your insurance company pay you for your bodily injuries? I was rear ended and had a stiff back for a day or two, and I received a $700 check for compensation for my injuries. Yes, I told the other parties insurance that my back was stiff for a day or so and I had no plans to see a doctor.

Also, how much did you collect from diminished value, since your vehicle is worth less now that it has been in an accident? Last time I was in an accident, I collected $2500 diminished value from the other driver's insurance for diminished value.

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dwickenh
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Re: Geico subrogation claim

Post by dwickenh » Mon Jul 15, 2019 2:15 pm

SimonJester wrote:
Mon Jul 15, 2019 7:25 am
dwickenh wrote:
Mon Jul 15, 2019 6:24 am
travellight wrote:
Sun Jul 14, 2019 6:53 pm
TropikThunder wrote:
Sun Jul 14, 2019 5:22 pm
This scenario is why those who advise not to tell your own insurance company are so misguided.
What do you mean?
It is clear that informing your own Insurance Company is always the best choice.
I would caveat this with the following... If you do not have full coverage on your own vehicle your insurance company will tell you to file a claim with the other parties insurance carrier. Even with full coverage your insurance company may suggest filing with the other party to avoid a claim on your own policy / CLUE report.
Informing does not mean filing a claim. It does mean making sure your Insurance company is aware that a possible claim has occurred.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

Bambuk
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Re: Geico subrogation claim

Post by Bambuk » Fri Sep 13, 2019 5:09 pm

LISD wrote:
Sun Jul 14, 2019 4:45 pm
If you want to add a CDW (collision deductible waiver) to your policy, Geico will pay the deductible if the 'At Fault' party has no insurance.

If you have CDW, your policy statement will say 'WAIVER' on it.

The State allows drivers to drive without insurance, and we (responsible citizens) are expected to pay additional insurance to makeup for the fact that the State is not doing their job - making sure everyone has insurance. It seems to me that a class-action lawsuit should be filed against the state to force them to pay for all uninsured motorist damage . Maybe then the States would take their responsibility seriously. In a country full of Lawyers, I'm surprised this hasn't already happened. Of course the Insurance companies wouldn't be interested in filing lawsuits because Uninsured Motorist Coverage is a money-maker for them.(Rant Over)
Because all the laws are written by lawyers in such a way so they have more work.
And what about ridiculous minimum Insurance coverage of $25000 when average car now is worth more and probably some good percentage of accidents have damage that exceed this amount. So instead of insurance promptly paying for the repair, they would pay the minimum and then you have to go sue the at fault driver for the difference. More work to lawyers.

Bambuk
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Re: Geico subrogation claim

Post by Bambuk » Fri Sep 13, 2019 5:19 pm

SimonJester wrote:
Sun Jul 14, 2019 5:17 pm
I would just let GEICO pay your claim from uninsured motorists and they can try and recover from the other party. You can also sue in small claims for the rental costs if GEICO doesnt reimburse you for that as well...
I thought that uninsured/underinsured coverage is only works for medical bills, not for car damage.
Am I missing something?

I am in very similar situation as an OP (that is how I found this topic). My parked car was totaled a week ago.
The problem is that value of my car is around $27000 (the adjuster is still trying to figure it out) but the at fault driver has only 25000 limit on his liability insurance. So his insurance will pay $25000 and my insurance still has to pay me $27000 so they will be down by $2000.

Will my insurance go to court against the at fault driver for the remaining $2000? It is kind of a small amount for them to spend time on lawyers.

Mr. Rumples
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Re: Geico subrogation claim

Post by Mr. Rumples » Fri Sep 13, 2019 5:32 pm

SovereignInvestor wrote:
Sun Jul 14, 2019 8:59 pm
LISD wrote:
Sun Jul 14, 2019 4:45 pm
If you want to add a CDW (collision deductible waiver) to your policy, Geico will pay the deductible if the 'At Fault' party has no insurance.

If you have CDW, your policy statement will say 'WAIVER' on it.

The State allows drivers to drive without insurance, and we (responsible citizens) are expected to pay additional insurance to makeup for the fact that the State is not doing their job - making sure everyone has insurance. It seems to me that a class-action lawsuit should be filed against the state to force them to pay for all uninsured motorist damage . Maybe then the States would take their responsibility seriously. In a country full of Lawyers, I'm surprised this hasn't already happened. Of course the Insurance companies wouldn't be interested in filing lawsuits because Uninsured Motorist Coverage is a money-maker for them.(Rant Over)
Isn't it illegal in virtually every state to drive without insurance unless one posts a bond for minimum financial responsibility limits?

Enforcement is the issue, many will do it anyway. Just as larceny is illegal and it still happens.
Enforcement depends on the state. In Virginia, to sell vehicle insurance, the companies must subscribe to a system where they notify DMV of a vehicle's insurance. If you switch companies, the company you drop will notify DMV and the new company will notify DMV. If the latter fails, you will get a letter from DMV asking for proof of insurance. In Colorado, there is no such system and they have a high number of uninsured vehicles. If memory serves me correctly, its about 30% and is often cited for the large number of hit and runs.

In Virginia, vehicle owners must pay a $500 uninsured vehicle fee to the UMF fund yearly if they want to forgo insurance, for each vehicle. (Its not a bond.) There are additional penalties and so forth if there is no compliance. The monies in the UMF fund are distributed to the insurance companies to cover the claims involved.

In addition, there is an assigned risk program. Insurance companies don't like that one. Let's say you have a lot of tickets and can't get insurance. The Commonwealth will assign you a policy through the “Virginia Automobile Insurance Plan” (VAIP). I know someone who had to use this since he couldn't get insurance in the voluntary market and didn't want the liability which came with using the UMF route.

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grabiner
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Re: Geico subrogation claim

Post by grabiner » Fri Sep 13, 2019 9:42 pm

boglerdude wrote:
Mon Jul 15, 2019 1:55 am
If not at fault, but your insurance gives you a check either through your collision coverage or uninsured motorist, will they raise rates to get the money back? Any laws about it or can they do whatever they want.
Insurance companies file their rating rules with the state regulators. In many states, there will be a section "Rating Information" in your insurance policy, which says which types of claims or accidents will affect your rate. My policy says that an accident surchange will not apply in clearly not-at-fault situations (other driver gets a moving violation and I don't, car struck in the rear, car parked, hit-and-run reported to police), nor if I am reimbursed by or have a judgement against the responsible party. In NJ, I had a policy which said that the best rate required no accidents in the last three years, even not-at-faults, and also no comprehensive claims.
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Momus
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Re: Geico subrogation claim

Post by Momus » Fri Sep 13, 2019 10:05 pm

StevieG72 wrote:
Sun Jul 14, 2019 3:19 pm
Fast forward a few weeks and I get a call from Geico stating that Direct General has denied the claim. The policy was either not in place at time of accident, or they dropped the insured. ( they do the latter frequently) <---- i know this doesn't sound legal but apparently it is, for example if the insured has someone living at the same address not listed on the policy they can deny the claim and drop the policy.

Geico will pay claim with zero deductible under uninsured motorists coverage.

So if I chose to initially proceed with Direct General, I likely would of jumped through some hoops just to be back to square one and dealing with Geico. In addition, I was a bit surprised that I would have to pay deductible and rental fees since it was a not at fault accident. If I had rental coverage with Geico that would have been paid upfront.

This is my first not at fault accident that I decided to let my insurance company handle. Overall I am pleased, vehicle repaired quickly without too much aggravation.
Dropping the insured after the accident doesn't do anything to your claim. If the insured hits you and has active policy at the time of the accident, direct general still has to pay you. They can drop their insured a minute later, but that doesn't make your claim invalid. They can refuse to pay out based on other reasons: blaming you are at fault, or whatever stupid reason they pick.

If Geico is paying you with your own uninsured motorist coverage, it means the other party at fault has no active insurance when the accident happens. They aren't gonna just let you use that clause if the other at fault driver has active insurance at the time of accident.

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StevieG72
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Re: Geico subrogation claim

Post by StevieG72 » Sun Sep 15, 2019 7:03 am

Momus wrote:
Fri Sep 13, 2019 10:05 pm
StevieG72 wrote:
Sun Jul 14, 2019 3:19 pm
Fast forward a few weeks and I get a call from Geico stating that Direct General has denied the claim. The policy was either not in place at time of accident, or they dropped the insured. ( they do the latter frequently) <---- i know this doesn't sound legal but apparently it is, for example if the insured has someone living at the same address not listed on the policy they can deny the claim and drop the policy.

Geico will pay claim with zero deductible under uninsured motorists coverage.

So if I chose to initially proceed with Direct General, I likely would of jumped through some hoops just to be back to square one and dealing with Geico. In addition, I was a bit surprised that I would have to pay deductible and rental fees since it was a not at fault accident. If I had rental coverage with Geico that would have been paid upfront.

This is my first not at fault accident that I decided to let my insurance company handle. Overall I am pleased, vehicle repaired quickly without too much aggravation.
Dropping the insured after the accident doesn't do anything to your claim. If the insured hits you and has active policy at the time of the accident, direct general still has to pay you. They can drop their insured a minute later, but that doesn't make your claim invalid. They can refuse to pay out based on other reasons: blaming you are at fault, or whatever stupid reason they pick.

If Geico is paying you with your own uninsured motorist coverage, it means the other party at fault has no active insurance when the accident happens. They aren't gonna just let you use that clause if the other at fault driver has active insurance at the time of accident.
Before it actually happened to me, I would have agreed with you. Truth is it happens all the time. Direct General will drop an at fault party for not disclosing someone living at their residence and refund premiums, deny the claim. ( policy fraud, or incomplete disclosers) They do this frequently. Most insurance companies do not go to these lengths to deny claims, Direct General does. (Direct General insures high risk drivers) So you could have Direct General for years, all is well, life is good. Your cousin Bethany moves in with you due to an ugly divorce. ( you never liked her ex anyways) She has her mail changed to your address, lost her driver’s license and updates it with your address. You let her drive your car, to look for work and she has a fender bender. No big deal, we are insured. Nope, Direct General sees Bethany is living with you, not listed on policy ( who thought to do that?) and denies the claim. ( someone living at residence was not disclosed to Direct General) refunds premium.

For my situation the guy that hit me was driving his sister’s car. Geico followed up with Direct General, she was insured. Fast forward a few weeks Direct General notifies Geico that they denied the claim. Geico pays for all of my repairs and will now attempt to recover funds from the owner of the car. So the girl’s car was totaled, and she is on the hook for my repairs.
Fools think their own way is right, but the wise listen to others.

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