Insurance advice needed desperately?

Question

A driver ran a red light and collided with my vehicle. We swapped details and my car was driven home. I attempted to report it to the police. As no one was injured, they did not want to know.

The other driver's insurer towed my car for assessment. It was driveable, as I could get it home, but now they say there is mechanical damage to add to the panel damage. It's a write off, they say.

My car is over 10 years old, but has very low mileage and was in good nick. The redbook value is under $4,000. The market value for older models of my car with higher mileage is $5,000 to $7,000.

I am the sole breadwinner for my family, and we only have one car. The insurer has not accepted costs for alternative transport while they hold my car. We can't afford to borrow for another car. Essentially, because the other driver ran a red light, I will be unable to earn an income.

My insurer does not want to know about it since liability has been accepted already by the other insurer.

What can I do?

Answer 1

i work in insurance in australia.

i'm not quite sure what you are querying - is it just the hire costs issue?

or is the payout?  you can challenge the market amount offered by getting a valuation on your car from a licensed valuer.  if it's higher, then insurer may agree to meet you in the middle.

if i were you i would have claimed from my own insurer first.  if you think about it, your insurer has a vested interest in keeping you happy so they get repeat business from you (provided you don't claim all the time!!).  if you've got your car insured at an 'agreed' value with your own insurer, you would probably get a higher settlement too.

your insurer CAN'T prevent you from claiming off your own policy - even if the other company has accepted liability.  

if you are trying to claim hire costs off another insurance company - you need to prove to them that by NOT hiring a car, you will be financially worse off.

by that, i mean, if you are a taxi driver, courier, sales rep or any other occupation that uses their car FOR their job, not just to get to and from work.

if it's just a matter of inconvenience that you have to catch a bus to get to the office, insurance won't cover that.  insurance covers financial losses, not inconvenience.

if there is no public transport options (ie you work night shift or you are in a rural area) then hire car costs can be considered.

Answer 2

All of the posts that suggest you contact your insurance company, and let them deal with the claim are providing you with incorrect information.  If you do not have collision coverage, which you do not, then your insurance company will not provide you with any assistance.  Insurance adjusters/reps get involved when they are investigating/handling a claim for which you actually have coverage.   The insurance company does not act as an agent.  If you have an agent, they can offer some existance.  

Anyway, it sounds as if the other party has accepted liability.  You need to contact them and find out why they will not offer a direct billing with a rental company.  It could possibly be that they still have not reached their insured, and they still have not completed their investigation.  

If you have a credit card, go rent a vehicle, or perhaps you can car pool with somebody from work.   Perhaps you can borrow a vehicle.  Explain your plight to the claims rep in a very polite way, and see if they can expedite the settlement.  You will be reimbursed for the rental if they accept liability.  

You will be offered the Actual Cash Value for your vehicle.  This is Replacement minus depriciation.  Most larger insurance companies do not use book values.  They use third party vendors like CCC which provides an evaluation based on similar model vehicles in the geographically region where you reside.  If you want to know what you can likely expect for your settlement,  go to nadaguides.com and use the lower value.

Answer 3

If the other insurance company has accepted 100% liability for the loss, they must make you "whole."  This means they must pay for the vehicle, reasonable transportation costs, repair shop storage, medical costs etc.

They pay "market value" which is recently  sold vehicles by dealers in the local area.

They will pay for your transportation for a limited amount of time.  I would insist upon rental coverage (with a comparable vehicle) until the check is in your hand.  They are all told to short all claimants.  I see it everyday.  You must fight (not yell) for your rights.  If they aren't budging, complain online to your state's Department of Insurance.  They won't settle the claim but will contact the insurance company for information.  Sometime that alone will get them to properly reimburse you.

I feel, if you can't afford to buy a replacement vehicle and your vehicle is worth over $4000 in the marketplace, you should get collision coverage.  Then your company will pay your claim within your policy limits, and will go after the other company for reimbursement.

Answer 4

You should insist that your insurance company go to bat for you.  You also may want to consider using your own collision insurance to pay for your repairs or pay you for the car if they "total" it.  Often your insurance company will treat you better than the others ins. co.  If you use your own co. you will have to pay them any collision deductible you may have, they subrogate with the other ins co and when all is settled, you will get back part or (usually) all of your deductible.  Also remember:  If your car is totaled and If you don't think you are being given enough for the car, you can go out and get your own assessment from a knowledgeable and respected auto person (they should not charge for this)  Just have them write a note showing their opinion of the value and present this to the ins. co.

Answer 5

Your insurance company should be fighting your case.  Do you have legal cover added to your insurance policy?  You are quite within your right to claim against them for costs of hiring a car for use whilst yours is off the road when the other person was at fault.  You dont have to accept the first offer they present to you.  Stand your ground and request that your own insurance company help you with the negotiations here.

Answer 6

I wish I could give some good advice, but there not much to say.  People buy more expensive insurance to get stuff like car rental, etc.

You might be able to fight the wright off from what you said, but you probably have to talk to a lawyer (and that cost $$$).

Good Luck...

Answer 7

ALWAYS CALL 911, on any auto accident, I would look for a new ins. Carrier,most ins. company's will let you have a loaner,iam sorry to say this, you have a low end ins. company,dump it when things get ok.