When in an accident, what is the best way to get payment for loss of a car?

Question

Daughter was in car accident with a few injuries. Not her fault. A lady run a stop sign. Are we to accept only the money offered to cover the vehicle that was lost, or do we get to ask for a certain amount. Being told they will pay current market value of truck but if not enough to pay loan we are responsible for balance. Shouldn't the person at fault be responsible for that balance? How about loss of wages? What about getting another vehicle to replace the one we lost? I think the person at fault should pay for everything. I need guidance, please.

Answer 1

If the 'at-fault' lady has insurance, her policy starts with the words "We will pay all claims for which you (she) are legally liable arising from the use of your covered auto".

So she IS responsible for your 'loss of use' only IF YOU INCUR THAT COST. In other words, rent a car. If you don't incur a loss, she's not 'legally liable' for the claim.

Unfortunately she doesn't owe you for your poor business practices in getting upside-down in your loan. All they owe you for is the market value of the truck, not the loan amount. Sorry.

Loss of wages is another valid expense for which she "is legally liable". Have paycheck stubs in hand, and the doctor's report telling your daughter to take XX number of days off.

Let me cut to the chase. You're in a better position than if you were using your own insurance because YOU don't have a contract with HER insurance company. THEY want something from you and your daughter, they need your signatures on releases so they can close their file. BECAUSE there is no contract, you have a strong negotiating position.

The adjuster knows what the examiners are going to give him demerits for, so try to get him to make it up on the things he's willing to negotiate. In other words, the "pain and suffering" amount.

If you go into a negotiation fully prepared with everything you can make a case for as "arising from the loss", let the adjuster do his job when he disallows some things because he knows what will affect his performance appraisal next quarter, and let him pad the things he knows he can in order to get your signature on a release.

Some advise:
1. NEVER lie. If you're caught in a lie, your credibility drops to zero, and a saavy adjuster knows he can grind the value of your claim into the dirt. It's virtually impossible to recover from a blow to your credibility.
2. When you've added up everything you think has reasonably 'arisen from the loss', YOU make a demand before THEY make an offer. It's MUCH harder for them to negotiate down from your demand that it would be for YOU to negotiate up from their offer!
3. Understand the concept of a "compromise". A good compromise is when nobody walks away entirely happy with the result. Don't try to get rich. When you see that they're being reasonable, and are close enough, stop.

Which is what I think I'll do, I smell popcorn. Have a nice evening.

Answer 2

Since it was not her fault, the insurance company of the person at fault will be responsible for giving you the worth of your vehicle at the time of the accident, adjusted for condition, not the replacement value nor the amount still due on a loan if you happened to be upside down on the loan and owed more than the worth of the vehicle. If you talk with your agent with any questions, the agent can explain it to you. If your lost wages were because of injuries, the medical part of your insurance should cover that. If it's because you 'had no car to get there' then no, you could have rented a car to get to work.

Answer 3

It's not "get what you want" with insurance. You are only entitled to the cost to repair or if totaled the Actual Cash Value. If you happen to owe more on your loan than the ACV, you are "upside down" and the company is not responsible to pay that. With regard to the injury claim and lost wages, you submit proof of the wage loss to the insurance company and it's calculated in with the offer they will make to settle her bodily injury claim. This claim is settled when she is done treating with the doctor, as it is a one time, full and final, lump sum payment and a release will have to be signed (if she's a minor that may be different). So don't expect to get a check in the mail for that, as it's all done at the end. Lost wages that are not because of an injury are not covered (like if you took a day off from work to get the vehicle inspected, etc).

Again, with regard to the property damage, if you owe more on the car (and this would apply even if you were using your own coverage with your company) than the ACV, they do not have to pay that. A lot of people finance vehicles and the price is more than the vehicle is worth to begin with when you add all the fees in. Then you add depreciation into the mix, and it's possible you will be upside down, especially if you did not put a down payment on the car. Look into GAP insurance for future purchases. It will pay the balance of the loan if this happens again.

If you get an attorney, remember, attorneys get 1/3 of the settlement. People think that getting an attorney gets them more in their pocket, but that is not necessarily true. The decision is up to you, but the offer would be the same for your property damage regardless of an attorney. The total loss offer is somewhat negotiable, so if you're at the first offer, if you ask for something reasonable you may be able to resolve it yourself.

Answer 4

Let's split this up.
Vehicle Damage: They totaled out your car, therefore they are only obligated to pay the value of the vehicle-- no more (unless the state you are in requires sales tax reimbursement). As for the remaining balance, Did you purchase GAP coveage when you bought the vehicle? If so, the GAP coverage will pay off the remainder of the loan, if not, the other Insurance Co. is not obligated to pay what you owe, but only the value of the vehicle.

Lost Wages: You will have to prove to the other company that your daughter took time off of work due to injuries. You will also have to prove up your wages and the Insurance co. may contact your employer for verification.

Replacement vehicle: Insurance CO.'s are not obligated to replace a vehicle, simply to pay the Actual Cash Value.

You are looking for a lot here and basically, insurance co's are not there to put you into another car, nor are they there to pay for whatever you want.
Sorry

Answer 5

This answer has been covered pretty well....in short -

1) Other party only needs to pay the amount they are "legally responsible" - Actual Cash Value of your vehicle (how much the vehicle could be sold for) if a total loss, or the amount to repair the damage back to the way it was before the loss. Also, other party is responsible for your rental expenses (within reason and does not include the insurance on said rental vehicle or gas/mileage costs) for the time that vehicle is being repaired or up until the time a good faith offer for the total loss has been made. Be prepared and get "Auto Trader" magazines or other documentation to justify how much your vehicle could sell for (other same make/model vehicles with comprable miles/condition and accessories) so that you can counter any offer that is made that is not within reason.

The amount owed on the vehicle is not factored into the equation. If; however, you purchased GAP coverage on your own auto policy or from the dealer, my advise would be to go through them as you would have coverage for any deficit here.

2) injuries - If you know what your injuries/medical bills are, an attorney is NOT needed. Many times they will do next to nothing and get 1/3 of your settlement. Remember that all medical bills/expenses are part of your settlement; however, if these are initially paid by your primary insurance (be it health care or Medical coverage on you own policy) they will require repayment from your settlement...(unless you auto med pay is "no excess/no reimbursement). So if you have $10000 in medical expenses...do not settle for $11000 as this would only net $1000 for any pain/suffering/lost wages that you would be entitled.

Answer 6

There are several claims here . . .1. the loss to the car 2. the loss of USE of the car 3. The daughter's medical bills 4. her lost time/wages 5. dimunition of value of the vehicle.

The person having the accident is NOT responsible for your loan balance - if you got sharked, it's not her fault. That's a private relationship between you and the bank.

You can ask for whatever you want, but you might get laughed at. It depends on, how serious are her injuries? How long was she hospitalized? Does she have any permanent injuries, scars, loss of use of arms, legs, eyes?

YOUR AGENT should be walking you through this, you PAY them for that.

Was your daughter at ALL at fault? On the cell? Speeding? In some states, she'd share the loss, pay her percentage of fault to the other party. YOUR AGENT can give you the specifics for your claim.

IF the other party is 100% at fault, you'd be entitled to ACV of the car, and cost of rental. Lost wages for how long your daughter missed work. SOMETIMES you'd be entitled to medical costs, and/or pain & suffering. There are too many variables involved, YOUR AGENT can answer these questions.

Answer 7

Market value of the vehicle is all ins owes. Loss of wages and injuries are handled seperately. As far as other person paying the balance, while she may be at fault for the loss she certainly is NOT at fault for making a bad deal on a car purchase. You can roll your negative balance into another car if you like and be no worse off than before. (still a bad idea).

Answer 8

you are going to be able to desire to maintain making money until the coverage settles. The lender does not care proper to the vehicle, and that they might desire to no longer. The coverage pays the fee of the vehicle to the lender. Any extra is paid to you. If there's a shortage, then you particularly might desire to come again up with the variety. you could no longer sue the different motive force for that shortage - courts in elementary terms enable for the fee on the time of the loss. The coverage agency determines if the vehicle is an entire loss.

Answer 9

You should definately talk to both your insurance company and a lawyer. Since there were injuries, the other person's insurance should pay for the medical as well at a minimum. Don't sign anything accepting a ssettlement or accept any money until you have found out about all your rights under the law.

Answer 10

get a lawyer, always get a lawyer. You will get 10 times more money with a lawyer even though he gets a 1/3 you will come out better.