Why won't the other driver’s insurer pay for costs upfront after an accident?

I got into an accident and the other driver is at fault. This driver's insurance company wants me to absorb the costs for repairs and a rental car first. They say they'll reimburse me later. But I don't want to wait for reimbursement. Why won’t this insurer pay upfront?

Answer
Usually, the other party’s insurance company will advise you to use your own insurance or to pay out of pocket for your own damages only under certain circumstances. These circumstances could involve a question of liability or a question of coverage.
If the other party described a different version of the events causing the accident, for example, the other company might still be investigating liability and would not yet commit to paying your claim.
If there is a question of coverage, the company is attempting to verify whether the other party had valid coverage at the time of the accident, and if so, what coverages would apply.
In either case, obtaining a copy of the police report may help to resolve your claim.
If you have collision coverage on your policy and elect to use your own coverage, then your insurance company would go after the other party or their insurer to recover anything paid on the claim, as well as your deductible, in a process called subrogation.
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Shannon Martin
Answered on Mar 12, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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