Hello all and thank you in advance for your kind answers.

My Girlfriend was involved in an accident in November. Here are some key points about the event.
1. Accident Fault - Fault was clearly the other driver Documented in the Police report.
2. Vehicle is currently financed - In both of our names so I have a valid reason for being involved with the negotiation proceedings since it was also my property involved.
3. This question is about dealing with the Insurance company on the Damage to the vehicle not the Personal Injury.

We have been contacted by the other drivers insurance and they have offered a settlement. The amount is $2600.00 the total remaining balance on the vehicle note is $5300.00. The vehicle is a total loss. (passenger side door is now residing in the driver seat) The insurance company knows this and is dealing with it as so. I believe that I should be able to collect the payoff amount from the insurance company for several reasons.

1. The accident was their clients fault
2. Had the accident no occurred I would still have a vehicle to drive
3. The cash value of the car may be $2600 but the damage to me is $5300
4. The insurance company has an obligation to put me where I was before the $2600 does not put me where I was before it leaves me without a vehicle and $2500 in the hole. That is hardley putting me where I was before the accident.

The insurance company is telling me that this is a cash value policy and they will not pay more that the $2600.00

What would your advice be in dealing with the insurance company?

highlyfavoredjb

Mckinney300Z,

I am sorry to hear of this situation and it happens all too often. Please listen to what I am saying: the value of your vehicle is not always what is owed on your vehicle. The way it works is this, first who declared the vehicle total loss. Your insurance co. or the insurance co. of the driver that hit your vehicle? If you accept the other insurance co. total loss your co. may not see it that way. But here's how is works, you need to check the blue book on your vehicle (at post office or bank or insurance co office), look at the things you had in your vehicle ie... cd player, wheels, pwr steering, condition of vehicle (good or okay), leather seats, etc... those kinds of things. It all adds up to tell you the value of your vehicle. Also, you can check with local dealers to see what your vehicle would sell for (sometimes it different from the blue book more or less). Something missing, what has your insurance co. said to you? Be careful of one major thing: DO NOT SIGN THE VEHICLE (DMV) PAPERWORK TO ANYONE!!! Sometimes companys will say its just to clear DMV of your ownership, it is but wait until you know you have the best deal possible for YOU! And since the other vehicle did damage your vehicle they should pay it off. However, if you go to court the judge will surely tell you that you can only collect what the vehicle is worth not what you owe. I hope this helps you with your loss.

Good luck, jill

ScottGem

First, you can go to kbb.com or edmunds.com and get a value for your vehicle. Second, you need to talk to YOUR insurance company. If they will pay off the loan, then take it and let them sue the other party's insurance co for reimbursement.

But, they are only required to pay what their insured's policy is for. I'm not sure where you get the idea that they are supposed to make you whole. The policy would have to have been written that way. If the value of the car was only $2600, then you may be out of luck here.

Mckinney300z

Here is some clarification
1. The vehicle was declared a total loss by State Farm (the insurance company of the person who hit my car)

2. My insurance company (also state farm) has not had much to do with this claim since the fault has been determined to be entirely his fault.

3. We have not submitted anything to his insurance for what was in the vehicle. Strangely enough my girlfriend had almost $900.00 worth of make up that was destroyed. And I had some computer equipment (DVD Burner etc.) in the vehicle.

(note on number 3: I don't know how they will react to a claim on that high of a dollar amount of make up but we have photo proof of what was destroyed and receipts for the purchase of it. Hopefully it is a good thing we are dealing with a female on the claim she should under stand that it is not hard to have $900.00 worth of make up in an everyday bag.)

As to why she had this high dollar amount - she used to be a clineque consultant working their retail make up counter. - One small compact of powder base is $54.00

ScottGem

I think you stand a good chance of recovering the value of the goods destroyed by the accident. If you have proof of their destruction and receipts showing their value. But I don't think you will get them to cover the balance of your loan. The insured's policy is such that it will only reimburse the value of the car, not make the injured party whole.

excon

Hello Mac:

Whole??? If you have a car worth $257, and the insurance company gives you $257, that looks pretty whole to me.

What you owed isn't a factor. Why should it be? You had stuff in the car. IF they give you anything for it, it's going to be based upon the MARKET value of the stuff - just like they valued the car.

Yup, I know, she paid $54 for some stuff. But, the stuff was used. Ok, maybe not "used", but NOT new. So, tell me, how much would the (not new) $54 stuff be worth on the table at your neighbor’s yard sale? A couple bucks - maybe??? That's the value - really. That's what the insurance company should offer, and that's what you should accept.

Let's say that you owed $476 on the stuff. Do you think the insurance company (or the court) is going to care???? Nope, they're not. Just like they're not going to care what you owed on the car.

excon

jgoldman77

Just a couple thoughts - I am going through a similar situation where my wife was involved in an auto accident, no injuries, other driver fully at fault, but his insurance company won't pay.

First, note that the amount remaining on your auto loan is not necessarily the same as the vehicle's value. If a vehicle is a total loss, the at fault insurance company must give you the pre-accident value of the vehicle, which is different than paying off your loan.

Second, though your damage is $5600 that is only something you can be given if you choose to have your vehicle repaired. Our vehicle had $7000 worth of damage, and every penny went to the repair shop. The insurance co is now trying to settle for a measly $1000. If your vehicle is a total loss, the insurance isn't going to give YOU the money that would have gone to a repair shop to fix the vehicle.

I know, its insanely frustrating, but I hope that helps. I would suggest getting an attorney and considering bringing suit against the ins co.

ScottGem

I think you are a bit mixed up here. If the vehicle is repairable, then the insurance company will pay for the repairs. If you use an affiliated repair shop, they will pay the shop directly. If you use your own shop, they will issue a check to you for THEIR estimate of the repair costs. If your shop charges more, you are left holding the bag. But if you use an affiliated or authorized shop, they will pay the difference.

If the vehicle is considered totaled, then the insurance company will give you a check for the book value of the vehicle before the accident.

s2tp

I am not sure about at-fault accidents, but several months ago my car got broken into, and over $7000 worth of DVDs an CD's were stolen, along with my radio face and other vandalized items.
My insurance Company covered all the damages to the car as long as it was attached to my car, such as by screws, glue, etc. They would not cover any items IN the vehicle..such as all my cds and dvd's cause that stuff falls under Homeowners/renters insurance.

I did not press the issue since this incident happened in Arizona while I was driving through. It happened at a hotel though, and I should have gone to the hotel insurance to cover my stuff...I decided it was more trouble that I didnt have time for...

So I am not sure about State farm, but they may see the loose items as the same.

Another thing to mention is when I bought my car I purchased GAP insurance. This insurance was my safety net so if my car DID get totaled, and I was only paid the worth of the car and not the remaining loan, this insurance would cover that remaining balance. Luckily I never had to use it, but its a good idea when you buy a car...

s2tp

Scott,

Actually thats not true..at least not in my case.

When my car was vandalized I took my car to the nearest shop and the insurance guy met me there. Progressive talked with the repair shop and issued them a check to cover the repairs. I was in Arizona driving to california where my uncle owns a auto repair shop, so when I called him he told me to just tell the repair shop that I would get my window fixed with them, but would continue the rest of the repairs when I got home so I wasnt paying out of pocket for the hotel room extra nights.

My insurance company would not issue the check to me directly. They would only sign it to either me and the lien holder, or me and the repair shop. previous experience taught me that trying to cash a check between you and the lien holder- they wouldnt let me, they wanted the total deposited into the remaining balance....

Well I got the check, turned my car into my uncles shop, an he told me that he could do supplements. Meaning that if parts and labor cost more at his shop than the other shop then he would just contact the insurance company and they would send him another check to cover the difference.

Also insurance companies give estimates on knock off parts, not manufacturer. Another thing my uncle told me is that when I had to have my bumper or hood (cant remember) replaced it would not line up right so he had to go for the higher priced part to fit better. When this happened he again went to the insurance company, showed proof that he did try the lower grade part but that it was not a proper fit...and again they sent him a check for the difference.

I know this story differs than the original one, but I just wanted to point out that check company can and will pay the difference if need be.

I believe you can get estimates done at different shops, and the insurance company will go for the lowest bidder... it sucks, but its the system...