Who is responsible if the insurance does not compensate what is due in an auto accident?

Question

Someone rear-ended our 1977 Chevy Blazer. We had just finished rebuilding everything on it. The seats, interior, paint and engine. The kid who hit our PARKED blazer has insurance. However, the insurance wants us to settle for $1500. We are not happy with that settlement offer and would like to know who we would go after in court if this goes legal. We are not trying to be greedy, but would like at least what we put into the Blazer. Is the insured responsible to pay out what the insurance will not cover?

Answer 1

they are obligated to pay for the repairs to your vehicle. if 1500 wont cover it get a few shops write it up the cost of the repairs on a work order, fax it in the the adjuster, and they wont pay out the damages, you will need to go to litigation.

Answer 2

You won't get what you put into it - that's the nature of cars. If you want an investment - refurbish your house- not your car. You put money into a car because of a love of cars.

The things you did will add value to the car (if you can produce the receipts to show what you did, for how much and when- and it was all done recently) but it does NOT add what you paid for it. For example- you have the car repainted - cost $2000.00. 2 months later, the car is a total loss - you may get $1000 added to the value for the paint job- but not the full 2000.

You would sue the owner/driver of the other car. However, their insurance company will hire a lawyer to defend him (it's in the policy - they have to do it- ain't just the big bad ins co picking on the little guy - their contract requires they defend their little guy). So - before you file the small claims papers - make sure you have a case that can stand up to a lawyer defending on the other side.

If you have collision coverage on your car - file against your own coverage and see if you can get a better offer.

The owner/driver of the car is only responsible if your damage exceeds the amount of their coverage limit. That does not appear to be the case here.

Answer 3

They (or their insurer) is responsible to pay to restore your vehicle to the condition it was in prior to the accident. If the vehicle is totalled, they are responsible for the fair market value of your vehicle. This amount has nothing to do with how much you think it's worth, and many times aftermarket accessories do not add to a vehicles value. It's a 30 year old Blazer - I think $1500 is a generous amount.

Answer 4

Unfortunately what you put into the car doesnt always increase its value. The insurance company has offered you the ACV- Actual Cash Value- They cannot pay you and you cannot collect more than what the vehicle is worth.

The vehicle is always worth more to the owner for personal reasons. If you do not accept the offer then the ins company will simply close their file and not pay you. Take their offer and you can still keep your vehicle too.

If you collect from the insurance company, you cannot collect from their insured. Its called Double Dipping and its against the law.

Answer 5

The problem - if there is a problem - revolves around the book value of a 1977 Blazer. If the cost of repairs far exceeds 1500-bucks, take it to court. But be prepared to pay legal fees and court costs if the ruling goes against you.

To my knowledge, you are responsible for paying out what the insurance will not cover, certainly not the kid who hit your vehicle. But if a court decides in your favor, then either he or his insurance company will be forced to pay the difference.

Answer 6

Just because you put a certain amount of money into a vehicle DOES NOT make it worth that much more. For example..

some kid could get an 89 civic and "pimp it out" with a glitter paint job, big expensive rims, lower it, put tv's in the back.. and put 10k into that piece of crap car... do you really think it means its now worth over 10k? i dont think so.

They only owe you actual cash value- what your car would sell for... it soundsl ike thats what they gave you. You really think your 77 blazer.. regardless of condition would sell for more then that to anyone?

I think your in for a reality check. Sure, you can try to sue them all you want.. but... im just giving you a heads up you wont win.

Answer 7

no fault states are in basic terms of benifit to the responsible party if there's a dispute over the fault of an twist of fate (which includes un-wittnessed incident, your be conscious against his, and so on). on your case, there should not be a dispute, using fact the development proprietor can no longer in all risk be at fault. There could desire to only be a talk or a preceeding of person-friendly strategies to pay for the damages. additionally i do no longer think that the "no fault" rules on your state be conscious to property injury, i've got self assurance it only applies to different automobile collisions to shop litigation time and expenses that the state and native government will pay to its district legal experts.

Answer 8

First line is always with the insurance company. Show them all the reciepts for the rebuild and tell them to make a better offer.

Answer 9

insurance will normally pay market value, unless a special policy. If the driver has not accepted liabilitiy for the accident nor been found responsible via a traffic violation, you may have to get that established at law. Then you can procede with a civil action to recover your expenses. Be careful, any padding of the account will destroy your case. You will have to prove your pre-crash vehicle condition. Don't expect the driver to have assets/cash to pay up, and it may be wise to freeze his assets so you can get something. This could get iffy, but you can try.

Answer 10

The insurance company is required to pay what his plan covers. If his plan doesn't cover the extent of the damages, he is responsible for the difference.