Auto Insurance Claims: auto insurance claim, auto insurance claim, insurance payment

Question
Hi,I was recently involved in an accident.The person at fault should pay my damages as i have liability insurance.However that person's insurance has very less coverage and is not able to cover atleast 50% of my damages cost.How will the claim be settled in that case.Will he take away my car though he is not paying for the whole damages and declare it total loss?Can he still change my title?Can i sell my car while the claim is still under process,as the appraisal was done by the insurance company long ago?

Answer
Hi Divya,

The insurance company can not pay out more than the amount of coverage on the policy. If the damage to your car is more than 70% of the value of your car then it will be considered a total loss. However, if there is not enough coverage on the policy to pay you for the calue of your car you have a couple of options;

1) you can sue the at fault driver for the total amount. However, if they do not have any money you will have a hard time collecting what you win.

2) you can accept the insurance payment but, do not give them your vehicle or title.

3) you can check your own policy to see if you have underinsured motorist coverage which would pay you for any shortfall.

You should not sell your vehicle until th claim is concluded and the settlement is all worked out.

I hope this helps
Richard Hixenbaugh