QuestionQUESTION: Our new jeep wrangler was T-Boned while sitting in a turn lane waiting for traffic to clear. The amount of money that our insurance company has offered is reasonable (the driver that caused the accident was underinsured. The insurance company is only offering 10% of the value of the required add-ons (electrical,frame mount tow bar)for towing behind our motorhome. Since the add-ons were required for the purpose of towing, should I accept this amount or expect the actual replacement amount
ANSWER: Hi Rich,
Your insurance company has to comply with your policy. Take a look at your policy, under the collision section, or the UM/UIM section (whichever one or both you are claiming under)and see what your coverage allows. If the policy states that you are entitled to the actual replacement value, then that is what you get.
Insurance companies are in business to make money.
Do not accept any settlement until you are certain that you are not entitled to more. If the adjuster sticks to the 10%, which I find questionable, ask her/him for the exact section of your policy that specifies that you are only entitled to 10%. If you ask, they have to tell you. If necessary, ask in writing.
I'm confused regarding the at-fault party. The other driver was underinsured? Did you recover anything from that carrier? The at fault party has to pay you for all of your damages within the limits of the policy.
You also mention that this is a new vehicle. New, or new to you? I ask because most companies, and most policies will specify that a new vehicle should be covered to its "new" condition.
Hope this helps. I can't really get more specific without seeing your policy or knowing what state you are in. The main message is this ... do not settle for the 10% unless they can actually document support for such a low settlement.
Good luck.
Jane Pytel
http://SolutionsForYourinsuranceClaim.com
---------- FOLLOW-UP ----------
QUESTION: The at fault party only has $10,000 insurance, the minimum in Arizona. He hit another truck which then hit us. We were found to be not at fault. Our vehicle was purchased brand new in May 2010. the accident happened in Yuma, Arizona but our permanent residence is in Pt. Angeles, Washington. Allstate is comparing prices between the two states because we had a temporary address in Arizona. They call us snowbirds. Thanks and please help
rich
Answer Hello again Rich,
"Comparing" prices to your detriment? You only have one policy, not two!
Being from Florida, I am very familiar with snowbirds. In the case of Florida, in order to keep my registration, I must reside here for at least 90 days out of 365 and I must purchase Florida auto insurance. I am free to travel to another state with coverage under my Florida policy. If I move to another state temporarily, I need to abide by that state's registration and insurance laws. So, in other words, if I am gone long enough, I might have to change my registration and insurance to that other state.
But here is the point. You only have policy at a time, regardless of where that policy is. In some coverages, if you are involved in an accident in one state, but your policy is in a different state, your insurance might have to pay according to the laws of the second state. But your insurance company cannot pay you less than what you are entitled to you under the terms of your policy in your state. In fact, they might have to pay you more.
I doubt this applies to your situation. It usually only applies to medical coverages.
You must pursue this with the adjuster, preferably in writing. Politely demand to know exactly what provision of your policy allows the carrier to apply the insurance laws of one state to the laws of another state. Have you confirmed what your policy says about replacement value as discussed previously?
Understand that insurance companies cannot stray from the terms of your policy. If there is a provision in your policy that allows them to mix laws from two states (and I've never heard of that) then make sure you completely understand those terms and that they are not being applied to your detriment in the form of a lowball offer.
A couple of important points:
Differences of policy interpretation must always be made to the favor of the insured, not to the insurance company.
Never, never assume that your adjuster is an expert.
As to the other issues, yes the 10k was inadequate. I assume you received at least a partial pro rated settlement.
As to your car being "new", check your policy to see if it has a provision for repair to "new" cars, and if so, what is the definition of "new".
Hopes this helps.
Jane Pytel
http://SolutionsForyourInsuranceClaim.com
