My car was hit by an un-insured motorist and totaled, what's likely to happen with my insurance company?

Question

I have a 2005 Chevy Impala with about 21,000 miles on it. It was just like new and I just bought it in February. July 3rd my car was parked on the street and I was in the house watching TV when a car ran a stop sign, clipped another car, and slid into my parked car. The driver smashed in the drivers side of my car and hit it so hard that my car wash pushed onto the side walk and the back tire on the passengers side folded under the car.

Everyone that has seen my car since the accident says that it's totaled. We've filed a claim with my insurance company and we're waiting on them to send out someone to evaluate the damages.

I bought the car with $5,000 down and owe about $9,000 because of taxes and because I bought the warranty along with it. According to my research with Kelly Blue Book and other sources my car was worth at least $12,500 or a little more. If the car is declared totaled is it likely that I will get that from my insurance?

Answer 1

Are the police involved in this hit-and-run act? You should have called them and gotten a police report -- so that your insurance company can be sure you didn't wreck the car yourself. Then you and the police should be trying to find the person so that their insurance can pay for your car.

If the person can't be found, your uninsured motorist coverage will take over -- if you have it -- or if you live in a no-fault state, your insurance will handle it.

Whether your car is totaled or not is determined by the insurance company. Generally, if repairs cost more than about 70% of the value of the car, then it's declared a total loss and you are paid "replacement" value. This amount may or may not be what you are expecting. If not, you have the right to reject the offer and fight the company for more money.

Good luck.

Answer 2

Correct -- UM is for personal injury only in most states. Your collision coverage will be used to either pay for the vehicle (if it is a total loss) or repairs costs. Total losses are settled on what the vehicle is actually worth (actual cash value (ACV)) or market value. If an '05 Impala is only worth $8,000 then that's all you are entitled to. Don't have a cow until your insurer appraises the vehicle and be warned -- no one uses Kelly except used car dealers. Most use ADP or NADA for a baseline value. You will have to pay your deductible but your insurer will attempt to recover and return this to you from the dead beat driver as soon as possible.

Answer 3

Primary question, do you have un-insured motorist Insurance.

If not big time problem. You need to contact an attorney,

and get some information if you don't have that clause in

your insurance coverage.

Answer 4

It's all going to depend on the quality of your coverage, the adjuster you get, and your willingness/ability to fight your insurance company if they try to shaft you.

Answer 5

OK, I went to kbb.com, looks to me like the car is worth about $9300.  You have to use PRIVATE PARTY sale value.  

So, assuming you've got more than $8,000 of damage - which might not be true- the insurance company would write you and the bank a check for $9300, MINUS your deductible, whatever that is.  So, probably  the car will not quite get paid off, and then you won't have any money left to put down on the NEXT car.  

You only get the lesser of the actual cash value, or the cost to repair.  You don't get dealer sale price.  You don't get warranty (although you can ask the warranty company for a pro rated refund).  

You're right - uninsured motorist coverage in CA covers INJURIES, not damage to the car, so it doesn't apply in this accident.

Answer 6

Well, the good news is if it's declared a total, it will pay your loan off.  They will give you fair market value, and that's about $9,000.

It will be on your collision, and less your deductible amount, but the insurance will be looking to get back what they paid out from the person who hit you, and they will go after your deductible also, so there is a chance you will get that back.

Blue book gives this, by the way (and blue book tends to be higher than real life figures):

Excellent

  $9,980  



Good

  $9,340  



Fair

  $8,500  

so I don't know where you got $12,500.

Anyway, the adjuster will have the final say, and your agent can answer any questions you might have about it.  Good luck.