Car insurance question ----total loss reimbursement and car rental??? In Texas.?

Question

My sister's boyfriend was driving my sister's car and was crashed into by a drunk driver and totalled her car. The insurance company is dealing with him, instead of her! I think this is extremely unusual! Anyways, moving on....They provided a rental for 3 days and have yet to pay the damages for the car. My questions are these...

1. Is there a policy that the insurance company pays for the rental until they pay the car reimbursement?

2. The car is actually worth more than the loan. The insurance company told my sisters boyfriend that they would not give more than 1,000 (the loan is 1200). The cars nada value is between 2,700 and 3,900. Are they supposed to pay the lesser of either the car value or the amount of the loan, I was under the impression that the insurance would pay the car value, so this all sounds fishy.

3. Are they required to give you enough to buy a replacement of equal value?

I would really appreciate any help clarifying these issues. Thanks!

Answer 1

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Answer 2

1.  NO.  It's  all "usual and customary".  And I'd strongly suspect that they don't know this is your sister's car - or maybe, the title is in HIS name.

2.  They pay the lesser of actual cash value, or the cost to repair.  Go to www.kbb.com, and find the PRIVATE PARTY value for your vehicle.  Likely, you're looking at retail.  Retail is not owed - only private party value.

3.  No, only the LESSER of the cost to repair, or the actual cash value of your car.  They aren't on the hook for any kind of "bad deal" or "replacement".

Answer 3

Rental is paid if you have purchased it in the policy. In most cases it is included in the policy but you have to check the policy.

If the loan is less than the value of the car then the value of the car is taken into effect. The only time loan value is important when it is more than car value.

You have to talk to the insurance company and prove the value of the car via kbb.com. The insurance company normally wants to pay less but you can nogociate. They will give you the replacement value minus the deductible.

Answer 4

1.  They pay for however many days of car rental that the insurance policy says they will.  Three days is pretty standard.  You're supposed to go get another car now - don't wait for the insurance to work it all out to car shop - that always takes way too long.

2.  The loan is usually not even taken into consideration.  The car's value is.  If you can provide them documentation of the higher value of the car than what they are claiming, it would help to produce that.

3.  No.  They pay you for the value of the car at the time it was totaled.