Insurance company problem?

Question

My gf's son was in an accident last Saturday; not his fault. Other driver pulled out in front of him and police have assigned full liability to that driver. His truck is a 86 Nissan D21 pickup and the damage is pretty bad. Estimate so far is about $3800 to fix and www.kbb.com lists this vehicle's value at $2100 (actually had to use an 87 to compare; they don't have older). Clearly the insurance is going to total the vehicle.

Yesterday we finally got the rental car (son is driving her car). Today the insurance company is telling her that she can only have the car till Saturday.

I'm thinking she keeps the car until the matter is resolved. That is, she has a check in hand for the market value of the vehicle or it is fixed.

Secondly: the check won't cover fixing the vehicle yet it's a great little truck and worth fixing. Engine appears to be fine as does the chassis. Can we sue the driver for the difference between the settlement and the repair?

I should say that the vehicle has maintenance records, which includes every tank of gas, going back 147,000 miles to the day it was driven off the lot by my gf's cousin. It's not replaceable in the sense that it really is a GOOD vehicle; never wrecked before this, ran like a top, always professionally maintained. That's my contention regarding the diff. between market value and cost of repair.

FYI: the police report clearly states "driver A: 100% liability, Driver B: 0% liability, Driver C: 0% liability"

The insurance company has offered $750. www.kbb.com says $2100 and some ads I've seen in my general area go as high as 2400. I have a fight on my hands.

Answer 1

You don't say what state you are in but the following information generally will apply in all states.

Regarding the rental car the at-fault parties insurance company normally has to provide the rental car until they make you a settlement offer (plus 2 or 3 days mailing time) that is documented as far as where the value numbers come from. This doesn't mean that if you disagree with the offer that you get to keep the rental car and they keep paying. It doesn't work that way.

Since the vehicle is a total loss it won't be getting fixed unless you "buy back" the salvage and repair it using the settlement check. The at-fault company only owes you for the value of the vehicle not the repairs.

Generally, if you settle with the at-fault insurance company you have no legal right to collect anything further from the at-fault driver. That doesn't mean you can't sue her, it just means that you aren't likely to win.

If you haven't already done so I suggest that you do some more homework about the value of the truck. Try auto sale websites such as autotrader.com, yahoo or ebay. This will give you a better ballpark value than the Kelley Blue book.

Good Luck

Answer 2

I would recommend one to try this web site where you can compare quotes from the best companies: http://INSURE-HELP.COM/index.html?src=3YAqho4yzH0wty

RE :Insurance company problem?
My gf's son was in an accident last Saturday; not his fault. Other driver pulled out in front of him and police have assigned full liability to that driver. His truck is a 86 Nissan D21 pickup and the damage is pretty bad. Estimate so far is about $3800 to fix and www.kbb.com lists this vehicle's value at $2100 (actually had to use an 87 to compare; they don't have older). Clearly the insurance is going to total the vehicle.

Yesterday we finally got the rental car (son is driving her car). Today the insurance company is telling her that she can only have the car till Saturday.

I'm thinking she keeps the car until the matter is resolved. That is, she has a check in hand for the market value of the vehicle or it is fixed.

Secondly: the check won't cover fixing the vehicle yet it's a great little truck and worth fixing. Engine appears to be fine as does the chassis. Can we sue the driver for the difference between the settlement and the repair?
Update: I should say that the vehicle has maintenance records, which includes every tank of gas, going back 147,000 miles to the day it was driven off the lot by my gf's cousin. It's not replaceable in the sense that it really is a GOOD vehicle; never wrecked before this, ran like a top, always professionally maintained. That's my contention regarding the diff. between market value and cost of repair.
Update 2: FYI: the police report clearly states "driver A: 100% liability, Driver B: 0% liability, Driver C: 0% liability"

The insurance company has offered $750. www.kbb.com says $2100 and some ads I've seen in my general area go as high as 2400. I have a fight on my hands.
Follow 15 answers

Answer 3

The truck is a total loss -- end of story. No amount of routine maintenance or repairs make it worth more than what the buying public will pay for it, which is what he will be offered. It sounds like the insurer has made him an offer. Once that is on the table they have every right to end rental at a resonable time period. Just because the owner doesn't accept the offer makes no difference to the insurer -- he will have to pay for his own rental after that. Once the offer is accepted they should forward a check pretty quickly but if it will take a few extra days to come in the mail then the adjuster can extend rental a little -- just don't get cocky. They have the checkbook in this matter so it's not in your best interest to be combative. You may be able to buy the 'salvage' from the insurance company and do the repairs yourself but I would not recommend it. It is so much trouble getting a proper title that it just isn't worth it. You cannot sue the driver for any amount above what the truck is worth (and if the insurer is actually offering $2,100 for an '86 Dodge, you should consider this a gift). One last note: no one but used car dealers use Kelly to determine values. Almost all insurers use NADA or ADP to set a baseline value.

Answer 4

I recommend you this site to get quotes - COVERCOMPARE.INFO-

RE Insurance company problem?

My gf's son was in an accident last Saturday; not his fault. Other driver pulled out in front of him and police have assigned full liability to that driver. His truck is a 86 Nissan D21 pickup and the damage is pretty bad. Estimate so far is about $3800 to fix and www.kbb.com lists this vehicle's value at $2100 (actually had to use an 87 to compare; they don't have older). Clearly the insurance is going to total the vehicle.

Yesterday we finally got the rental car (son is driving her car). Today the insurance company is telling her that she can only have the car till Saturday.

I'm thinking she keeps the car until the matter is resolved. That is, she has a check in hand for the market value of the vehicle or it is fixed.

Secondly: the check won't cover fixing the vehicle yet it's a great little truck and worth fixing. Engine appears to be fine as does the chassis. Can we sue the driver for the difference between the settlement and the repair?

Answer 5

Yes, you can, but you need to see a lawyer now, before the insurance settles. Many states and insurance companies have laws or rules that say once the insurance company has settled with the other driver's insurance, there is no father liability. Don't let your insurance company's attorney handle this alone, until you've spoken to another attorney. You should be able to get back the difference in bluebook v/s fixed and also the rental car cost for entire time vehicle is out of commission, plus any medical, lost wages, etc. If kid is a minor, the mom should also be able to get her damages back such as lost work, etc.

But, you also have to look at what the lawyer will charge, or what percentage he'll take. Is it worth it? Rental car for a week is about $300. Difference in bluebook v/ss fixing truck is about $1700. So is it worth the time, hastle, headache for 2 grand? minus attorney fee wich will probably only leave you with a little over a thousand bucks?

Answer 6

Hi there:

About the rental.....

Legally, technically...whatever you want to call it...The insurance company only has to provide the rental vehicle until a total loss offer is MADE.

You don't have to accept the offer - that is your perogative but - they don't have to keep her in the vehicle until she decides what she wants to do.

(Note - when I handled claims? I would give the person a few extra days in the rental but some companies hold very strict to the law. You can ask them to accomodate you - but they don't legally have to.)

Now, If the vehicle is repairable?

Stick with me here...........they will pay for the cost of the rental as long as the cost of the rental PLUS the cost of the repairs does NOT exceed the total loss value.

So, let's say the cost of the vehicle is $3000 for example. If the repairs are $2000 and the rental will be $500 (for total cost of $2500)...they will pay the rental and repairs. But, if the value is $3000 and the repairs are $2700 and the cost of the rental would be $500 (for total cost of $3200)...they would just go ahead and total the car.

Now - if you wanted the car repaired in that situation? You could forego the rental and the vehicle would be repaired.

The insurance company has to take into account that an estimate is just andestimate. Once the vehicle is torn-down at the shop - they may find more damage. They need to make sure there is enough money left to cover that additional damage.

Makes sense, right?

So, can you sue?

Regardless of WHO is paying the damages - you are only entitled to recover the value of the vehicle as established by your local market. If you are duly compensated as such? No. You can't sue. You have been indemnified.

My recommendation?

It sounds like you've got a total loss on your hands. Once you have agreed on an offer - request to keep the salvage. (That's the vehicle in its current condition). The salvage value will be deducted from your offer. You get the remaining money and the vehicle...and can do whatever you want with it from there.

So.......offer of $3000. Salvage of $500. If you want the car? You get $2500 AND the car. If you don't want the car? You get $3000. No car.

Clear as mud, right? :-)

If you keep it, depending on your state - you may have to get a salvage title. Most states, though, I don't think it would matter since you have an older vehicle.

And....that's it, right? Hope no one was hurt.

Goodluck!

~jifr!

Answer 7

If they total the vehicle, all they owe is what the market value was at the time of loss. Not what you owe, not replacement value, not what it would cost to fix. As to a rental, you only get access to one until they settle, which they did as soon as they sent the check for the value of the vehicle.

If you need to rent one longer, it's on you, not them. You can sue anyone for anything these days, but you don't stand a chance of winning. You were made whole by the insurance and the judge would dismiss your case.

Added: By the way, if you want to fix the car, you will have to buy it from the insurance company that bought it from you. It is their car now, not yours. If they haven't already, they will soon be sending a tow truck to pick it up.

Answer 8

No, by law a court will not award you additional damages beyond the lower of the two amounts (either the market value of the vehicle or the repair costs) unless there was malicious intent of some kind. In this case, it was simply an accident, and you will be reimbursed for the lower of the two costs, in this case $2100.

And unfortunately it makes sense when you think about it...if the judge did award you the higher $3800 repair cost, what would prevent you from simply pocketing the extra $1700 and not using it for repairs at all? If you want to repair the car rather than total it, you're going to have to come up with the extra funds yourself.

You could, however, recover your car rental costs and any other expenses incurred while you wait for the check for the vehicle market value if you go the legal route.

Answer 9

OK, just for the record, police do NOT assign liability. They can only offer an opinion.

They only pay for the rental until they cut the check for the damages.

They only have to pay THE LESSER OF the cost to repair, or the book value. Clearly, the lesser is going to be the book value. If you wish to keep the car, they will then subtract the "salvage value" of the truck, and you can do whatever you want with it.

You can't sue the driver, if you've been paid the value of the truck. Or rather, you can, but you'll lose, as he's only responsible for the LESSER of the two, not your choice.

YOUR AGENT should be explaining this to you!!!

Answer 10

You already have the right answers my friend the at fault insurance must pay the rental fees until such time as settlement is agreed. The added bonus if you can call it that, is that you can by the vehicle back at scrap value. You need to determine the difference between cost of repair and settlement figures.
Remember the internet buddy you never know where these parts can show up from.................good luck