My wife was hit by a van that ran a stop sign. The car is totaled and she is on crutches and my son has a broken callarbone. The Insurance co. is offering me $40.00 less than what I owe on the car. I have contacted an attorney but their contigency is 1/3. So if the payoff for my car is $10000.00 and my medical expenses are $5000.00 ( not actual just estimated for example). If the claim is settled for $15000.00 and I owe the attorney $5000.00 I fail to see where this is helping me. Looking for advice from anyone who has dealt with a similar situation.
2006-09-13 21:47:21 · 12 answers · asked by freemak142000 1 in Cars & Transportation ➔ Insurance & Registration
In my initial phone conversation with the attorney I stated that I felt the ins. co. (Statefarm) was offering me fair market value for my car, but my problem with that is now I am in the market for a new car and I feel that they should at least provide me with enough cash for a down payment for a new car. I just purchased this car in February 06 and I would not be in the market for a new car if not for their client's negligence. When I told him that he did not seem very confident that he could get that.
2006-09-13 22:22:43 · update #1
Thank you for all your geat answers, I accepted their offer for the property today. They are making me return the rental on Monday. I contacted an attorney today before I accepted because it seemed unfair to me that due to their clients negligence I don't have a car and they are taking my only means of transportation. The attorney said according to state law(Ohio) they can pull the rental within 3 days of offering me a setllement whether I accept it or not. I felt that they should at least give me a little extra for a down payment for a replacement vehicle. I am now in the market for a new car where as I would not be if not for their client's negligence. I am settling the personal injury seperate from the property, but that is going to take months for all of the medical bills to come in.
2006-09-14 17:25:05 · update #2
You have a good point. People are apprehensive, or feel ignorant and incapable of negotiating so often they hire a lawyer on bad financial terms.
Always remember: you can hire a lawyer by the hour to do some, but not all, of the work. Or to give you advice but not take your case. Or to give advice and help you later but only when and if you get into difficulty, and then be paid by the hour. (Ask the hourly rate. I charge $325 an hour, first hour free; but I only work in tax matters and only for certain kinds of problems. Lawyers charge anywhere from $100 to $500 & up an hour, depending on location and specialty.)
You don't say which insurance company is offering the settlement. Don't you have your own collision insurance and isn't your insurance company, or its lawyers, helping you? Do you have uninsured/underinsured coverage? If so, you mustn't settle without your own insurance company's agreement or you forfeit that protection.
It is one thing for your own insurer to offer you less than the debt on the car -- people really ought to buy only policies that guarantee to pay off the car loan -- and quite another for the other guy's insurer to do that. Arguably, the other guy has caused you real loss and should put you back in the position you were before, with the same or similar model, make, year.
I think negotiation should get you there. You might, however, not get a decent deal until you're at the courthouse steps. Depending how much you owe, and whether you are insolvent without the insurance money, you might call on your lender for help. You could also file a pro se summons and complaint. Is your health insurance, your car insurer or the other guy's insurer paying your medical bills? If your spouse has a claim within the small claims court limit, you can start the ball rolling by fragmenting your claims and having one of your passengers file a small claim. (If your medical insurer is liable to pay for the meds, then they are subrogated and will have a say in what you do.)
There are many strategic options, and they can't be exhausted on Y! Answers. And anyway I'm not licensed where you are, wherever that may be.
Don't sign off on medical claims until you know there won't be permanent injury and need for medical care forever. (I had an accident in a Paris hotel -- a chair was defective and collapsed -- and it's 9 months later and still no settlement, least of all for the $1000s in medical bills, MRI, etc.)
2006-09-13 21:51:37 · answer #1 · answered by Anonymous · 2⤊ 0⤋
He's right. The insurance company does not owe you that. The insurance company has to pay you for the actual cash value of the vehicle involved in the accident. If the vehicle is worth less than you owe, then you are "upside down" on your loan, and that is not the insurance company's fault.
Attorneys rarely get involved in property damage issues. They are usually more than happy to handle the bodily injury claim, because that is where they get their money. Those are two separate claims, by the way. The property damage claim is not connected to the bodily injury claim. The total loss settlement is somewhat negotiable, but you should not expect them to help you buy a brand new vehicle.
2006-09-14 14:19:51 · answer #2 · answered by Chris 5 · 1⤊ 0⤋
Your problem is: you made a bad deal at the purchase. A lawyer will only take your money. Being represented does NOT make your claim worth one cent more than it is. Try to negotiate some money for pain and suffering on top of your med. bills as you are certainly due some in this case. Most good companies will work with you on a fair amount though don't expect them to offer it to you without asking. State Farm is an excellent company but they are, after all, a business like anyone else. With the added pain and suffering amount (and don't look for a lottery amount) you should be able to purchase another vehicle for equal value and have some left over. Advice: do NOT threaten the claims adjuster with a lawyer. This is a red flag that will only get the file shot to their legal dept where an ARMY of lawyers await. Just be calm, polite and firm about where you feel you need to be as far as settlement is concerned. Remember, no company can pay more than their insured's policy limits. State farm, like I said, is a fair company with soild values and claims practices but can be a tough customer as they are NOT afraid of lawyers. The key is keeping a level head and balance. If you do get hold of an idiot claims adjuster (and this industry is FULL of them) politely request the manager. They will be happy to to this. Keep moving up the management chain of command until you feel like the person knows his or her stuff and a FAIR settlement can be reached.
(I should write an instruction book, huh?)
2006-09-14 08:23:08 · answer #3 · answered by Anonymous · 2⤊ 0⤋
The value of the car is usually not negotiable. I don't know what State Farm's policy on this is, but generally insurance companies will come up with the value based on what other vehicles in your area are selling for. If you don't agree with the value, I would find other similar vehicles in your area with similar mileage and options and make of list of them to contest the value with.
If worse comes to worse, use your own car insurance for the property damage and let them handle it with the other insurance company.
Your injury claim is completely separate and has nothing to do with the property damage. Most attorneys will not even mess with property damage because it is not profitable. A broken collarbone is a pretty serious injury. You may want to see what State Farm offers for that before seeking an attorney. Keep in mind that no insurance company will pay above their policy limits whether you have an attorney or not. Depending on what their policy limits are, they may offer you that regardless of an attorney for a broken collarbone.
Usually with attorney fees, the amount the insurance company paid extra because you had an attorney would cover the attorney fees. Example: if you didn't have an atty, the claim might settle for $10000. If you did, might settle for $15000, but atty takes $5000. You get the same.
You can usually negotiate the same with the insurance company yourself on injury claims. Just make sure not to sign a release until you are ready to.
2006-09-14 04:43:25 · answer #4 · answered by Johnny 3 · 0⤊ 1⤋
So, is this YOUR lawyer or is it your INSURANCE company's lawyer? Does your insurance company insure the other guy who his you too? If so, get your own lawyer. In any case, get a second opinion from a lawyer recommended by the Bar Association, because my gut says the lawyer who is blowing this smoke up your skirt has his hand in somebody's pocket. You ought to be able to recover not only your medical costs, but also an equal amount in pain and suffering. Also, who says it isn't a permanent injury? Your lawyer? Is the lawyer a doctor? I had an accident with soft tissue damage about 20 years ago, and I still have recurrences of the soft tissue problems. 20 years later. Maybe the recurrences will stop, or not. Don't let him off the hook. Get a second opinion and do it before your lawyer talks your doctor into saying that you are *CURED*. Just because you don't appear to have a permanent injury doesn't mean you don't have a valid claim. My *opinion* is that your lawyer is a quack. Best wishes with your NEW lawyer, the one referred by the Bar Association.
2016-03-27 00:49:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
What you do is first don't let them try to talk you into settling, bodily injury and vehicle damages can be separated. Tell them you will settle for the fair market value of your vehicle, plus the financing charges that you had to pay. Their insured was at fault not your wife. Also make sure that when you guys sign for the check for the vehicle they don't try to stick on there anything covering damages. Also mention that the more stress your family is going through, the longer the healing process and more therapy they will be going through. But, incase you didn't know medical and vehicle damages can be separated. That way you can get your new car so you can continue to take wife and son to their regularly scheduled therapy, gosh I hope there is no mental damage because I would be not able to sleep from the stress of the accident and the terror I went through. Maybe I would need to go see a therapist for my anxiety from the accident.
2006-09-14 02:38:58 · answer #6 · answered by DispatchGirl 4 · 0⤊ 1⤋
Freemak14:
Wow! You are getting a lot of good responses. The insurance company is responsible to compensate you for the fair market value of your vehicle at the time of the accident, and for your injuries and "suffering" up to the limits of the policy.
If it does get to the point where you must hire an attorney, may I suggest that you try to negotiate the fee with them. With a standard retainer agreement they would earn 1/3 of everything you were awarded by the court. Suggest to the attorney that you already have an offer from the insurance company for "X" number of dollars so you don't need him to get that much, but you would be willing to give him 50% (or more) for everything over and above that amount he can get you. If he goes for that kind of a deal it means he will work harder for you because it is in his interest to get you the maximum award possible.
2006-09-14 15:04:14 · answer #7 · answered by Peedlepup 7 · 1⤊ 1⤋
Whatever you do, my friend, don't sign on any paperwork, until you talk to an attorney...There are many out there to call, as the insurance company will try to get out of it as cheaply as possible...You need to talk to another attorney, also...If he or she was a good attorney, they would get you much more than what that one said...When I was struck by a car at 50 miles an hour from behind, I settled with the insurance company way too soon...As the company was both our insurance co...I listened to the claims adjuster, signing the paperwork, and was told by word that they would continue paying my doctors, etc...Well, danged if they didn't just stop all payments...Now this happened clear back in 1989, mind you, and I am still continually in pain, along with extreme tremors, caused by the accident...So, I decided to go to an attorney, not long after having the signed documents...He said that there was no way he could help me now, but he could have gotten me $30,000.00 to $80,000.00, not even knowing the extent of my injuries...So, please, please, talk to an injury claims lawyer right away...
By the way, as you take your time to decide, the insurance claims adjuster will be offering you more and more...They hate people who can't make up their minds...My accident happened in October, and when I signed, it was December...It went from $50.00 to $2,500.00, besides the care, and the car being fixed, I got until then...So, be strong, and hold out!
2006-09-14 01:52:13 · answer #8 · answered by Anonymous · 1⤊ 0⤋
30% is the norm for personal injury. You want to hire an attorney, but I would work my resources. Ask around and if you know an attorney in a different field of expertise, don't hesitate to ask them to recommend someone. Ask people you work with, contact your Barr Association, etc.
In 1993, I was in an accident by fault of another driver. I was not injured, but my 1989 mustang was totaled. I hired a friend who was a personal injury attny and right away the other motorists ins. company tried to settle with me for $4200. My mustang, at the time was worth $4000. I thought that this was a pretty good deal! My mother was the one who stopped me from settling. I believe, if I remember correctly, she said something to the effect of; "If you settle, I will DISOWN YOU!!!" So I let my attorney handle it. It took two months (of hell), but the insurance company finally settled with my attny for $8500. My attny got $2100, but I got $6400!! In the form of a check, fully negotiable the day I picked it up! I went straight from the bank to purchase my new 1993 Prelude w/ $4000 down and the rest I used to pay off my credit card bill and a months rent at my apt. The wait was horrible, but omg! Was it worth it!!
2006-09-14 05:15:49 · answer #9 · answered by carolinagrl 4 · 1⤊ 0⤋
The lawyer can ask for damages that are above
the policy limit.
Do not try to handle this yourself,too much medical.
2006-09-13 21:51:52 · answer #10 · answered by ? 6 · 1⤊ 3⤋