Total Loss - Split Payment?

[WolfpackAgent]

A customer of mine has a claim against another company. Their car is a total loss and they say (I'm waiting for a callback) that the company is offering 80% of the total value now, then the rest when our policyholder returns their rental. Is this normal or is there some kind of misunderstanding here?

 

[adjusterjack]

No, it's not normal. Standard practice is that the day the offer is made on the total loss is the last day that the insurance company pays on the rental. If the claimant retains the rental for some reason he pays for the ensuing days himself.

That's not to say that the other driver's liability company can't make up it's own rules in settling the claim. Nothing illegal about what is happening.

Whatever is going on, you client should get it in writing.

Or, he can turn the rental in today and go pick up his check for the full amount.

If he still needs a rental, he'll be on his own, and he can rent another car on his own account.

 

[WolfpackAgent]

Ok the PH was confused apparently. They pay 80% before paperwork is received, then the other 20% when they get it. That sounds remarkably fair to me.

Question 2 - how often do companies pay out a total loss on a car before they get the title?

 

[adjusterjack]

Ok the PH was confused apparently. They pay 80% before paperwork is received, then the other 20% when they get it. That sounds remarkably fair to me.

That doesn't make sense either. What "paperwork"?

Question 2 - how often do companies pay out a total loss on a car before they get the title?

Never, if they have any sense. Common practice is to get the title and then pay the claim. If a claimant wanted same day service he could bring the title to the claims office where a check would be waiting.

It's like Joe Blow buying a car off Craigslist and handing over the money without getting the title. Good luck chasing the title once the money is already paid. I can't see an insurance company letting that happen.

 

[WolfpackAgent]

Paperwork = title and title change paperwork. I agree with you and our company doesn't pay until we get the title.

 

[adjusterjack]

Paperwork = title and title change paperwork.

Then suggest to your customer that he give up the title and get the full amount.