Q: If my damages exceeded 80% of the car value, am I required to turn it over as a totaled car?
I was hit by another vehicle, and that person's insurance, Farmers, took 3 months to determine that their driver was at fault. In that time, I took my car into the shop, and the damages were $9,900, which was over 80% of the value of the car ($11,100). I paid for the $9,900 in repair charges out of pocket, since I did not want to buy a new car and I thought Farmers would reimburse me eventually. Now, Farmers is saying that since my damages were above 80% of the car value, I should have held the damaged car and gave it to Farmers in return for a check for $11,100. Since I did not do that, they are saying that all they can give me now is a check for $7,500, which is the value of the pre-accident car minus the salvage value of the damaged car. It doesn't seem fair that I am required to hold a damaged car for them for 3 months, buy a new car, and then hand over the keys to the damaged one once they make their decision. Is this normal, and is there anything I can do about it?
A:
more info needed.
did you have car ins and not turn over to them?
you can meet with a lawyer or sue in small claims for their limits.
what i have seen is if a car can be repaired for less then replacement value they will opt for the cheapest.
they are in the biz for a profit.
A:
1. Accept the $7,500.00 and demand compensation for loss of use of your car from the date of collision through the completion of repair. It is usually the daily rental rate of a similar size vehicle. The loss of use may push your total claim to $10k or more. You can print an offer for a daily rate of a similar rental vehicle as proof to give to the insurer.
AND/OR
2. Contest the value of your car to get the value high enough that your car won't be "totalled" by a $9,900 repair bill. Get a certified appraiser, or formulate your own appraisal with offers of sale of similar vehicles (same make, model, year, accessories, trim level, mileage). Use kbb.com, edmunds.com, autotrader.com, craigslist.com, etc. Only include cars offered for sale by dealers. Private party sellers are usually cheaper and won't be helpful. Also, more risk in a private party transaction. There is arguably no recourse in the event of a lemon.
If the insurer won't agree to the higher valuation and/or to rental car reimbursement, then sue the insured driver in Small Claims court to recover up to $10k.
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