My husband was waiting in a line of traffic while another car turned off the road and was rear ended by a pick-up going about 50mph, he was hit from the rear and then my husband hit the car in front and so on. Here's the problem... We are in our 60s and have a very tight budget. That car - a 2003 Honda SUV was suppose to last us another 10 years. It only had 40,000 miles on it and was in perfect condition. Not a scratch (I always park away from the crowd). So, the insurance co. has said they would give us $15,000 for the tottaled car, but the new SUVs cost over $20,000. Never having an accident before, we thought that our insurance would pay the value of the car and the car at faults insurance company would pay the difference for a new car. Found out that is not the way it works. So, we have been paying the insurance company for car insurance for about 40 years without any claims and now when we need them we find that they will not replace the car. Is this right?
2006-12-14 15:48:13 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
Yes.
Insurance only has to pay for the cost to repair the car, or the actual cash value (whichever is lower). If the car was a 2003 and was totalled (meaning the ACV is lower than the repairs), then that is all they have to pay.
You should see how much it would cost to fix, it may be only slightly higher than the amount they paid you (unless the car is really totalled beyond fixing).
Otherwise, unfortunately, this is the way that it is. They are paying you for what is a close estimate to what it would cost to replace a 2003 Honda SUV.
You could try to pursue his insurance company for the extra money (some people will tell you to hire a lawyer and do this), but it won't work. The laws are straightforward on the totalling of a vehicle and the right of the insurance company to do this.
Sorry, I can't give you a secret way around it, but what they are doing is the way that the laws are.
2006-12-14 16:21:06 · answer #1 · answered by jerry 5 · 2⤊ 0⤋
You have to understand what the insurance considers "replacement" value. Many times, an insurance company will use the Kelly Blue Book value of a car for the year of the car in question. In your case, they will look up a 2003 Honda Passport and the value will show $15,000. What this means is technically you should be able to find a 2003 Honda Passport for sale for $15,000. The one catch in using blue book value is some companies use the Wholesale (sell it yourself) price and some use retail (dealer bought) price. Their is a big difference on these 2 values and if you are forced to get your car through a dealer, then you will lose money.
Honestly, after such an accident, I would be more worried about your husband's health right now and the car later. Keep all your medical receipts as more health insurance companies won't pay a claim due to a car accident. When you are both feeling up to it, check on-line to see what 2003 Honda passports are available and at what price; if you can't get close to the price of the 2003 model, fight it with the insurance company. The value they throw at you is one they hope you will settle on. I fought one recently and got $1600 more than their first offer.
Good luck.
2006-12-14 16:24:44 · answer #2 · answered by Joe J 4 · 1⤊ 0⤋
Yes. That's not why you pay for insurance. Insurance is only obligated to put you in the condition you were in before the accident. If at the time of the loss you had a $15,000 vehicle, that's what you get. Paying you a 2007 price for a 2003 vehicle is bettering you. Sorry.
Do you still owe money on the vehicle or is it paid for? Can you apply some of what you get to a down payment on another? Otherwise you'll have to buy a used SUV if you want to pay the same price as what you got for the total settlement.
2006-12-15 10:59:55 · answer #3 · answered by Chris 5 · 0⤊ 0⤋
As one more man or woman mentioned earlier than, I additionally applaud you for now not speeding out and hiring an legal professional. What the 2 of you've got are what are referred to as "tender tissue" accidents (no damaged bones, no stitches. I'm completely happy, most often speakme, the either one of you're adequate. Please pay no brain to those folks who consider they understand the whole lot approximately attornies, even supposing they paintings at a regulation organization. The process of the legal professional is to generate income off you. The process of the coverage is to settle your declare really. You can assume the coverage to pay the entire vital clinical fees which might be concerned, as good as a payment for agony and affliction and/or misplaced wages. You'll have got to substantiate any misplaced wages and fees with forms. Pain and affliction are quite relative phrases to correctly compensate you for the inconvenience the coincidence has brought about you. The extra damages you suffered (how a lot the auto rate to fix, how a lot you needed to deal with), will aid support this payment. Overall, I could assume to get a pair grand greater than the clinical fees whole to be, if the fees whole greater than 2k. You do not have got to run out and get an MRI or a whole frame experiment (it is honestly too past due for that-the ones matters are performed correct after the damage). ***Remember, the obligation of coverage is to position you again within the identical location you have been in earlier to the coincidence, not more. I can not inform you how regularly I have had an legal professional name me when you consider that a purchaser employed them, discovered that their payment was once going to be not up to anticipated, then name me to look if I will cut back the quantity I will receive in reimbursement when you consider that their fool purchaser idea an legal professional was once the high-quality method to pass. Guess what my reply is? N-O!
2016-09-03 13:01:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
wait- you expect them to total your 2003 vehicle yet pay you to get a brand new 2007 vehicle? How on earth do you think thats fair? You dont get "rewarded" for someone hitting your car.
They only owe you- and only will give you- the actual cash value of your vehicle. Go and get another 2003 van with the money.
2006-12-14 23:37:09 · answer #5 · answered by Anonymous · 1⤊ 0⤋