Car Accident – Any tips on Insurance would help?
My husband was waiting in a line of traffic while another car turned off the road and was rear ended by a pick-up going about 50mph, he was hit from the rear and then my husband hit the car in front and so on. Here’s the problem… We are in our 60s and have a very tight budget. That car – a 2003 Honda SUV was suppose to last us another 10 years. It only had 40,000 miles on it and was in perfect condition. Not a scratch (I always park away from the crowd). So, the insurance co. has said they would give us $15,000 for the tottaled car, but the new SUVs cost over $20,000. Never having an accident before, we thought that our insurance would pay the value of the car and the car at faults insurance company would pay the difference for a new car. Found out that is not the way it works. So, we have been paying the insurance company for car insurance for about 40 years without any claims and now when we need them we find that they will not replace the car. Is this right?
Yes.
Insurance only has to pay for the cost to repair the car, or the actual cash value (whichever is lower). If the car was a 2003 and was totalled (meaning the ACV is lower than the repairs), then that is all they have to pay.
You should see how much it would cost to fix, it may be only slightly higher than the amount they paid you (unless the car is really totalled beyond fixing).
Otherwise, unfortunately, this is the way that it is. They are paying you for what is a close estimate to what it would cost to replace a 2003 Honda SUV.
You could try to pursue his insurance company for the extra money (some people will tell you to hire a lawyer and do this), but it won’t work. The laws are straightforward on the totalling of a vehicle and the right of the insurance company to do this.
Sorry, I can’t give you a secret way around it, but what they are doing is the way that the laws are.
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Yes.
Insurance only has to pay for the cost to repair the car, or the actual cash value (whichever is lower). If the car was a 2003 and was totalled (meaning the ACV is lower than the repairs), then that is all they have to pay.
You should see how much it would cost to fix, it may be only slightly higher than the amount they paid you (unless the car is really totalled beyond fixing).
Otherwise, unfortunately, this is the way that it is. They are paying you for what is a close estimate to what it would cost to replace a 2003 Honda SUV.
You could try to pursue his insurance company for the extra money (some people will tell you to hire a lawyer and do this), but it won’t work. The laws are straightforward on the totalling of a vehicle and the right of the insurance company to do this.
Sorry, I can’t give you a secret way around it, but what they are doing is the way that the laws are.
References :
You have to understand what the insurance considers "replacement" value. Many times, an insurance company will use the Kelly Blue Book value of a car for the year of the car in question. In your case, they will look up a 2003 Honda Passport and the value will show $15,000. What this means is technically you should be able to find a 2003 Honda Passport for sale for $15,000. The one catch in using blue book value is some companies use the Wholesale (sell it yourself) price and some use retail (dealer bought) price. Their is a big difference on these 2 values and if you are forced to get your car through a dealer, then you will lose money.
Honestly, after such an accident, I would be more worried about your husband’s health right now and the car later. Keep all your medical receipts as more health insurance companies won’t pay a claim due to a car accident. When you are both feeling up to it, check on-line to see what 2003 Honda passports are available and at what price; if you can’t get close to the price of the 2003 model, fight it with the insurance company. The value they throw at you is one they hope you will settle on. I fought one recently and got $1600 more than their first offer.
Good luck.
References :
http://www.autotrader.com
wait- you expect them to total your 2003 vehicle yet pay you to get a brand new 2007 vehicle? How on earth do you think thats fair? You dont get "rewarded" for someone hitting your car.
They only owe you- and only will give you- the actual cash value of your vehicle. Go and get another 2003 van with the money.
References :
Yes. That’s not why you pay for insurance. Insurance is only obligated to put you in the condition you were in before the accident. If at the time of the loss you had a $15,000 vehicle, that’s what you get. Paying you a 2007 price for a 2003 vehicle is bettering you. Sorry.
Do you still owe money on the vehicle or is it paid for? Can you apply some of what you get to a down payment on another? Otherwise you’ll have to buy a used SUV if you want to pay the same price as what you got for the total settlement.
References :
claims person