I hate insurance companies, a question

[Kenny_Z]

Nothing happened to the DeLorean. It's my daily driver. I was hit in the ear and shoved into another car. Both other cars in the wreck got off with scratches but my poor Monte Carlo lost a lot of body panels. They're hinting at totaling her. In fact my insurance said they are going to total her, take 1000 dollars from me in my deductible, and then take my car. The other driver admitted fault and I'm waiting to hear what they have to say about it.




First off, I understand she's an old car with 223k worth of miles on her. She's not worth a whole lot and these body panels aren't cheap. There is a minor impact behind the driver headlight. I get it. BUT, earlier this year I dumped a lot of money into this old girl and I drove her home. I've put about 100 miles on this car since the accident just taking her for the required estimates. I love this car. She's my favorite. I would sooner sell the DeLorean and Mustang than sell her. No joke. Alabama salvage laws are insane. I have to put up a bond just to get a license to fix this car. I had no idea I needed to put up a bond to bolt on a new hood. I'm surprised they didn't throw me in jail for stripping the paint off Red.

I'm thinking of telling both insurance companies that they should go take a long walk off a short pier. I don't want their money. I want my car. What am I facing if I width-drawl both claims and just fix her myself? I don't want someone knocking on my door down the road and saying my car is salvaged and I'm not allowed to drive her anymore.

[Michael]

I didn't realize there was a deductible if the car was totaled. After all they are saying it's not worth fixing, so where does the deductible go?

No offense but did that car with that mileage even book for 1k? Let's say for the sake of argument it doesn't. If someone totals your 800.00 ride and you have a 1k deductible, do you give them 800 bucks AND your car leaving you with nothing but a 800.00 hole in your pocket?

[DMCVegas]

If the other driver has admitted fault, you shouldn't have to pay a solitary dime to anyone. Their insurance will cover the damage/losses/etc. Now if you invoke your own insurance to cover these costs, THEN you'd pay the deductible.

Now what you can normally do is let them write-off the car, they pay you some cash, and then you can usually buy the vehicle back from them as salvage. Save for a salvage title, this isn't a bad proposition on a car that's worth some money. Like say they totaled the car & paid you $10K for it, and then you buy it back for $2,500. That leaves you with $7,500 and the car. Or perhaps in this case you could get maybe $2,500 for the car, and buy it bad for $500 or so. It just depends. This is something that you'll need to talk to the insurance adjuster about.

Question: How bad is the damage to the frame and supports in both the rear bottom & engine compartment?

Also, even if it has a salvage title, you can still get that either removed or converted to a Rebuilt Title.

[NightFlyer]

First off - glad you're OK.

Second, sorry about your ride - I definitely feel the pain.

Question - if the other driver is admitting fault, then why did you make a claim with your insurance company at all? Last I was aware, Alabama is an at-fault state, thus the driver who admitted to fault would be 100% liable for your damages. You'd only make a claim against their insurance policy, if they have auto insurance, and you wouldn't be subjected to a deductible at all.

I suppose that you'd make a claim with your insurance company if you had the car comprehensively insured for a declared value because of the sentimental value that the car holds for you, and were intending to use the proceeds from that claim to supplement the compensation received from the at fault party (though you can pursue the full value of the car to you, and not just the fair market or replacement value of the car, against the at fault party / their insurer - but judges/juries tend not to award much over the stated fair market/replacement value of the car and any modifications/customizations, should they contest your claim).

Of course, the only other reason you'd make a claim against your own comprehensive policy is if the at fault driver doesn't have insurance and is otherwise nonrecoverable (even if you obtained a judgment against them, you'd probably never successfully collect on that judgment).

However, whenever any insurance company inspects and assess the damages to a car, they're legally required to report their asserted condition of the car to the state.

You can withdraw your claims and keep the car, after all, it's still your property. But if they've already assessed/inspected the car, that won't stop them from having to report their asserted condition of the vehicle to the state, thus you're still going to have to deal with the state in being able to get it legally registered again after you repair it.

Even if you pursue a claim with at least one company, and they total it, you can usually buy the car back from the insurance company that takes title upon paying the claim - they'll sell it to you for salvage value (ex: I bought back a '95 Cadillac Eldorado that was hit by a school bus and totaled for $700).

Usually you can contest the reported condition with the state, but it's usually a long and frustrating bureaucratic process.

Or you can file the bond and jump their all their hoops - you'll get the bond money back eventually.

If you wanted to keep the car without the ramifications to the status of the title, then you shouldn't have submitted any claims to any insurance companies.

Probably not what you wanted to hear, but the best answers I have for you.

Best luck

[NightFlyer]

If the other driver has admitted fault, you shouldn't have to pay a solitary dime to anyone. Their insurance will cover the damage/losses/etc.

Doesn't work that way in no-fault states, unfortunately....

[David T]

Doesn't work that way in no-fault states, unfortunately....

No-Fault ONLY applies to bodily injury NOT to property damage. If the other driver is at fault 100% your insurance company pays you what your car books at less the deductible. Your insurance company is *supposed* to collect from the other driver's company and if the other driver is indeed 100% at fault his company pays your company the FULL amount. If and when your company gets the full amount they are *supposed* to give you the deductible. As for the car, in States where they have Salvage Titles, once the insurance company totals the car the Title is remarked Salvage. In those States you can no longer register and legally drive that car on public roads. Some States have procedures where you can fix the car and request they change the status of the Title but not all States allow that and it is not a sure thing. You can fix the car up and maybe not be able to fix the Title. Your problem is the kind of insurance you had. It allows the insurance company to set the value according to the fine print. Makes you wonder what you were paying collision for? If the cost to repair is within 10% of the book value the car is theirs, they throw you some crumbs and you are out of a running car! Your only hope is to hire an attorney and sue the other driver. Even then the burden is on you to prove the value of your car. If it is old and high mileage don't waste your time or money.

[Kenny_Z]

Question: How bad is the damage to the frame and supports in both the rear bottom & engine compartment?

The upper frame behind the headlight is pushed back about 3 inches thanks to the trailer hitch the front truck had. The bottom of the frame is unbent. The rear frame on the driver side has buckled slightly about 6 inches from the bumper mount. The car is still structurally sound and tracks down the road no differently than before. Other than the hood poking up you'd never know she was in an accident. It would have been easier if she had been damaged badly. I would have understood that I needed to let her go. This though, this is mostly cosmetic. A couple of replacement parts and a little time on a frame puller and she'll be back to normal.

Thanks Nightflyer, everyone involved was uninjured which is all you can really ask for. Everyone was telling me to talk to my insurance from the officer, guy that I got pushed into (who was an insurance rep for another company), and my father. If I knew then what I know now I wouldn't have called anyone. I also wouldn't have traveled down that road but hindsight is 20/20.

According to my insurance company the car is worth 2500 with about 5000 worth of damage. Subtracting the deductible leaves me with 1500, no car, and a fight to get my 1000 back from the other insurance company. I'm waiting to see what the other company says. I doubt it will be good news. I'm glad I have a couple of fall back cars. I could imagine trying to get a rental car from these companies would be like pulling teeth.

[NightFlyer]

According to my insurance company the car is worth 2500 with about 5000 worth of damage. Subtracting the deductible leaves me with 1500, no car, and a fight to get my 1000 back from the other insurance company. I'm waiting to see what the other company says. I doubt it will be good news. I'm glad I have a couple of fall back cars. I could imagine trying to get a rental car from these companies would be like pulling teeth.

You have a legal obligation to use an alternative car if you have one reasonably available to you, as a part of mitigating your damages, which then prevents you from recovering the rental fees that you'd otherwise have to incur had you not had access to a spare/backup vehicle (and yeah, I fully agree that's a rip-off, but that's what it is). Only if you don't have reasonable availability to another vehicle are the insurance companies obligated to pay for a rental.

So, here's what I'd do if I were you:

1) Withdraw your claim with your insurance company - there's no reason for it.

2) Demand $5k from the at fault party (insurance company). If they reject your claim, file a small claims action against them - as they'll pay the money or you'll come to a satisfactory settlement, as they'll want to avoid having to expend funds in defense against such a small lawsuit.

3) Buy back the car from the at fault party's insurance company for salvage value.

4) Do whatever's right for you in regards to the car.

[djdogbone]

My mom was an agent for 30 years, the other insurance pays for everything if it's not your fault as you were not the cause of the accident. Call your local agent. Your agency should be perusing the other agency to pay 100% of damages PLUS.

Who is your insurance company?

[Silverbullet]

Ok, I know how you feel.... but... If you have a car worth a $1000 and it is $5000 to fix it... you did not suffer a $5000 loss... the insurance will only pay up to the value of the car... You can take the $1000 and put $4000 of your own money to fix it... but it is not a good idea...
just how it works...

Craig