GDOT Retains Collection Company for Cost of Crash Damages

When a car hits a guardrail or runs over a stop sign, nobody is happy about the damage to their car. It is usually going to end up costing something, even if it is just the deductible. But what of the cost of replacing the stop sign, or the guardrail? The Georgia Department of Transportation has retained the services of a collection company to make sure that the cost of those damages also get recouped. 

According to a press release, each year, thousands of vehicle crashes on Georgia highways damage or destroy state property. GDOT is responsible not only for repair and replacement, but also for recovering the cost of damages from the party responsible for a crash. It could just be a couple of hundred dollars, but it could also run into several thousands of dollars, according to GDOT, such as in the case of the fracturing on an interstate highway bridge. The total cost each year can amount to upwards of $10 million.

Since this is not really a core function of the department, it has contracted the collection services to a leading insurance subrogation firm - Claims Management Resources, Inc., (CMR). Officials say there is no cost to the department or the Georgia taxpayers for this service. The Oklahoma-based company will act as GDOT's agent in recovery negotiations with insurances carriers and any subsequent litigation. The company also will collect a subrogation fee from the responsible party.

“This is an excellent arrangement for the Department and for the state’s taxpayers,” Georgia DOT Chief Engineer Russell McMurry said in a press release.  “CMR has an excellent reputation. The company is doing this same work for the Oklahoma Department of Transportation; results in that state have been very positive.  We are confident CMR’s Lean Six Sigma approach is going to result in greater and faster recovery of damages here as well.  It will allow our staff to focus on its core-mission priorities and, with our financial resources stretched thin, each dollar recovered will provide a vital reinvestment for growing and maintaining our transportation system.” 

CMR will begin work on the project immediately. As Georgia’s statute of limitations is four years. CMR will focus on older damages along with any new damages to Department assets going forward.