QuestionInvolved in wreck July 1st. Other party was showed at fault. On July 31 his insurance call us with an settlement offer on our truck. Our truck was totaled and we were also towing a trailer and it was totaled too. This was our personal/business truck(we have a home business) and we could not find a rental truck to replace it that had the towing capacity so, therefore; we did not rent a truck and we just borrow friends trucks when we need to haul our business loads. Are we entitled to some money from his insurance company under the "loss of use allowance" ? as I say this was our personal and business truck. We are now going on 38 days and our claim is not settled yet with this others mans insurance. The other insurance is also stating that the day our insurance company called us with an offer (in which was too low and we did not agree upon) that any day after that offer they are not liable. Our insurance was offering us collision payment with our deductible taken out when we were wanting liability payment from his insurance company to make it whole again. The difference is about $2500.00. We were also want to claim the truck and trailer as one claim with the other mans insurance company.
Our insurance was just paying for the truck. One more question. As I have stated it has been 38 days, what are my rights to have this resolved because it is going on 38 days?
AnswerHi Shannon,
It is VERY frustrating to have to go through even the vehicle part of a claim. And you do not get paid for all the hassle, inconvenience, or lost time researching the value and buying a new vehicle. I guess the only bright thing is that with all of that damage no one was injured—or I presume, you would have asked about injury claim procedures.
As for the rights of a person whose vehicle has been totaled, here are four free free pages of information on property damage claims & legal information guidance at www.SettlementCentral.Com that should help you:
http://www.settlementcentral.com/page0456.htm
http://www.settlementcentral.com/page0457.htm
http://www.settlementcentral.com/page0458.htm
http://www.settlementcentral.com/page0454.htm
http://www.settlementcentral.com/page0455.htm
You will note a few things right off the bat:
1. You are entitled to a rental allowance for the kind of vehicle(s) totaled IRRESPECTIVE of whether or not you ever rented another replacement vehicle. Even if you just sat home or in the hospital or wherever and never drove again until you got a new vehicle, you ARE STILL ENTITLED TO THAT RENTAL ALLOWANCE.
2. The rental allowance must be sufficient to pay for rental of BOTH THE TRUCK AND THE TRAILER. So find the rental costs of both of those and fight for both.
3. The rental allowance ceases once you get a good faith offer of settlement. That means a ballpark offer. Yes, of course you have not agreed, but what if they had to pay you an allowance UNTIL you agreed? There would be no incentive to be reasonable, would there? So the termination of the rental allowance kind of puts the burden on the vehicle owner to capitulate and compromise un terms that they might not have otherwise agreed to.
On other topics you raised: 38 or 13 or 45 days is not the issue. The issues are:
(1) Was the offer a good faith ballpark estimate of Actual Cash Value? If the offer is way off base, then you are still entitled to the rental allowance until a reasonable offer is made.
(2) Did the offer cover ALL of the damages?—In this case, the tortfeasor has to tender your deductible ASAP in order to qualify for termination of its rental allowance obligation.
(3) Does the company allow a reasonable time for you to accept the offer and to look for and to purchase another vehicle? This part is technically not required. But most companies allow from three to five days to accomplish these tasks. So go and argue for these extra days of payments. So ask your own insurer to add five more days.
(4) I do not understand the $2,500 difference in using his insurance versus your insurance. Is this the amount of your deductible? As I say, they—the tortfeasor—must tender you the entire amount of your loss. If your company tenders you $20,000 after deducting the $2,500 deductible, THAT does NOT RELIEVE the tortfeasor of its obligation to make you whole. Hence, the rental allowance continued UNTIL they tender you your deductibles.
(5) Yes, the truck and trailer are ONE claim, not two.
Issues not raised, but important.
FIGHT their bogus valuation by doing your own research. The usual CCC valuation report if bogus. Google ways to fight it. For example, ask for the FULL REPORT so you can track down the alleged vehicles that they supposedly used.
Next, TALK TO THE DEALERS that they supposedly got their figures from. Ask if that is the amount that the vehicle would bring in a Fair Market Value sale, with a knowlegable buyer in no hurry to buy. Reason being: CCC and their ilk are asking dealers what is their "take away price". Know what—that is the LOWEST PRICE that they will take. Hence it is NOT EVER going to be a price that you can have. That is a good attack on their reports.
Also do your own research both online and with real dealers. Document with names and phone numbers.
Finally, make darn sure you are getting BOTH the unexpired license fees back AND the sales tax to buy new vehicles. Do NOT let them screw you on the sales tax. Here is why.
It is true that some policies might try to avoid having to pay the sales tax. But even if your state is not among those listed in which a sales tax payment is mandated, you MUST FIGHT FOR IT on the basis that this is a third party claim, and the duty of the tortfeasor is to INDEMNIFY YOU.
Indemnification means to make you whole. Your car had TWO ASPECTS of value at the time of the accident. First is the physical value, the Actual Cash Value. But it also had the status as an approved vehicle to use the public roads. And what was that status? It was as a licensed vehicle for which the sales tax and licensing fees had been paid.
So let's say you do get the full $20,000 we used above, but if your area is average, you will have to pay a sales tax on the replacement. And at 6%, that sales tax is $1,200. So if all you get is the ACV, you are cheating yourself out of the next $1,200 it would take to pay the sales tax on your new vehicle. Fight hard on that sales tax.
I trust that extra my time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
