Sorry this isnt an auto finance issue but I know there are some knowledgeable people here.

I just had a question about a recent accident my friend had.

Her car was parked in front of her house and a lady rear ended it and tried to escape. I think
the cops arrested her..not positive though

My friends car was a 2009 Toyota, very low miles.
Her insurance deemed it "totaled"

My friend said shes only dealt with her insurance company regarding the matter, she wondering
why the other insurance hasnt contacted her.
My friend's insurance company came back with an offer that was alittle low.

She is wondering why she isnt dealing with the other insurance company since
it wasnt her fault at all.

Her insurance company is going to pay her out and go after the other insurance company to
pay back her insurance company.

Is this normal?

Is there any way of getting more money from the other insurance company?

Is it normal not to talk to the other insurance company regarding this matter?

Sorry if these are stupid questions. I've never had to deal with this myself.

Thanks!

I'm sorry but I don't know enough about this to properly respond to you. We do have some knowledgeable insurance folks and I think they frequent the General Forum.

The only thing I know about auto insurance is that it is too expensive. We'll try and summon some help from over in General forum.

Whichever insurance pays, it needs to be a fair amount based on the Actual Cash Value of the car in the condition it was just before the crash. ACV is enough to buy a used car just like yours was, including tax. Like anything else, you don't have to take the first offer.

If her insurance pays, the deductible will be subtracted from the payout. Her company may help her by including the deductible in the amount they recover from the other company. This is assuming the other driver can be found, and that they had insurance.

New cars often have a payoff that is more than ACV. If she did not have additional "GAP" insurance, she will need to cover this difference with cash or roll it into the financing of her replacement car.

I asked some of the insurance folks to come over here to this room and see if they could offer assistance.

Your situation isn't abnormal, per say, but it is common to deal with the other insurance carrier first. Has your friend tried to call them? If he/she knows the other lady's carrier they can try to get in touch with them. Also, your friend can haggle over the value of the vehicle. Are they using blue book or market research to determine the value?

Yep - there's nothing stopping her from being proactive and contacting the other carrier. If her insurance company has the police report, the other woman's carrier is likely listed on there. This other woman may not have collision on her vehicle, so even though she knows she hit someone else, she still may not have reported the claim (people are silly).

I am wondering if there is a coverage issue with this other woman's insurance. Either way, if she DID report it, they should have contacted your friend.

As far as actual cash value, as soon as you drive your car off the lot, that depreciation kicks in. This close to the purchase date, it's possible that the ACV is lower than what she owes on the vehicle (could be many factors - like the finance rate, the length of the loan). The majority of people are upside down on their cars until they've had a chance to pay down the loan, unless they put down a big down payment.

Whatever offer they made to her, they can send it to her in writing, with a copy of whatever valuation method they used to come up with the offer. There are several methods which can be used - including Kelly Blue Book, N.A.D.A., and CCC. CCC is a company that gathers information on the market values of like vehicles in your friend's metropolitan area.

If your friend has information that she feels affects the value of her vehicle (perhaps she added some enhancements to the vehicle that affect its value?), she should submit them to the insurance company for review. Insurance claims are all about proof of loss. The first offer is not set in stone, IF you have documentation that supports a higher value. They are not going to pay more simply because she just wants more.

All that to say:
1. She needs to call her insurance company and find out if they have the other carrier's info. If they do, she can get that and she can contact the other carrier directly.

2. She needs to ask her insurance company for a copy of the total loss valuation. She can review it to see if they left something off, used the wrong info to come up with the value on her vehicle, etc. She needs to remember that they don't owe her the RETAIL cost to replace her vehicle, they owe her the actual cash value of her vehicle before it was hit.

3. Check her loan paperwork - did she get GAP coverage?

4. I'm not sure who her insruance company is, but many companies now offer provisions to pay replacement cost, but it's an endorsement that you have to purchase and pay a premium for. If she has that endorsement, then the ACV won't necessarily matter. She should check with her agent and go over what coverage she has available for this claim.

I recommend having your friend finding a vehicle exactly like the one they own. Same miles, options, etc. and use that as a guide to judge what is fair market value.

Print those out and use that to negotiate with the insurance company.

When a vehicle is a total loss it's very important that whomever estimated that vehicle and ran the ACV chose all of the correct options. The paperwork gets sent to a company that runs a value. If the options, mileage, etc. are not right your friend is not going to get a fair settlement.

What insurance are we dealing with here?

Thanks for all info guys
Marv, youre great!

I believe her insurance (Farmers) used market research to value her car.

I dont believe she has GAP coverage.

The adjuster(who was somewhat hard to understand) said she has a "replacement cost" policy on her coverage. The adjuster said my friend should get more than ACV.
I could of misunderstood her.

She still hasnt been contacted by the other insurance company, which I think its weird.

Again, thanks everyone!

Hmmm...well if she has replacement coverage they should actually be gathering quotes on the cost of another 2009 Toyota to replace the one she has, not the ACV.

There could be a few reasons why she hasn't heard from the other carrier. Hopefully Farmers will help her work through everything.

another question

her family wants to keep the car.
is there a way to do that?

thanks again

It's possible in some situations, but I doubt the lienholder would want them to try and keep/repair the truck, especially if it has major structural damage that would be unsafe to repair. Keeping salvage requires getting a salvage title from the DMV...it's more difficult with a newer car than with an older one that's already been paid off, and has minor, cosmetic damage.

Retaining the salvage means that the insurance company is going to offer the ACV less a salvage fee (which is usually computed as a percentage of the ACV, or what they expected to recoup by selling the salvage at a salvage yard). It's possible that the ACV - salvage fee would end up being less than what it costs to repair the truck.

She'll need to talk to Farmers and see if it is an option to retain the salvage. If so, Farmers can give her a new offer based on retention. Keep in mind that once the vehicle is actually torn down, they could find additional damage than what's on the current damage estimate. They'd be responsible for paying that cost out of pocket.

Ahh, Marilie, just the person I need to see!


How are you???

Can you PLEASE check out my thread:

http://creditboards.com/forums/index.php?showtopic=409329

Thanks sweety

In IL you are not allowed to retain the vehicle until it's 8 years old.

You can always buy the totaled car from the insurance company for a price you negotiate with them. Any lien on the car needs to be paid off in the process; no lender wants a junk car for collateral. Whether you can patch it up and have it legal to drive it will vary by state. But you could part it out.

Not always. Sometimes...it depends. She just needs to contact the Farmer's adjuster and determine if this is one of those times when she can, and then go from there.

buytheredcar,

Instead of your friend waiting to hear from the other party's insurance company, why not suggest to your friend to contact the other party's insurance company and file a claim with them? That way, the other party's car insurance premiums take the price hike instead of your friend's car insurance premiums.

OP, make sure you come back and tell us how everything worked out for your friend.

Starting by contacting the other guy's company directly has been a bad idea in my experience. Remember, they work for the other guy, not you. Call your company and have them call the other. Then if it is covered, the other company will contact you and arrange for inspection and payment. Your company will not help you though if you only carry liability, since they don't have to pay for your car in any case then.

If it is agreed the damage is not your fault (which generally requires that a specific other person can be found and blamed), then your company will not increase your premium even if they end up paying.

The only problem with that is, your insurance company can't give a statement for you. They were not in the accident. The other company still needs to talk to you, regardless. Whether you report the claim, or your carrier does, the customer service rep on the other end of the line is going to ask the same info. They will probably call as a customer service gesture for you, but they are not required to do so. This is a situation where the OP's friend will be better off being proactive, IMO.