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?
If my damages exceeded 80% of the car value, am I required to turn it over as a totaled car?
- Thread starter powaya
- Start date
- 2,623
Yes, it's normal. If the car is a total loss the insurance company is entitled to the salvage value when it pays for the car. If you keep the car your settlement is reduced by the salvage value. This is how it works with your own collision coverage.
You should have used your collision coverage. Your claim would probably have been settled within a week or two by your own company. That's what you pay premiums for.
If you want the full $9900 you'll have to sue the other driver and get the court to award you $9900. The other insurance company has a contractual obligation to its policyholder to pay the full judgment.
The lesson for anybody reading this is if you don't get a decision from another driver's insurance company within two or three days, use your own insurance.
You should have used your collision coverage. Your claim would probably have been settled within a week or two by your own company. That's what you pay premiums for.
If you want the full $9900 you'll have to sue the other driver and get the court to award you $9900. The other insurance company has a contractual obligation to its policyholder to pay the full judgment.
The lesson for anybody reading this is if you don't get a decision from another driver's insurance company within two or three days, use your own insurance.
