QuestionHello, my automobile was stolen on 4/1/12. The Insurance compnay offered a written settlement on 5/10/12. I verbally accepted settlement offer on 5/11/12. The Insurance company issued payment to my lien holder via check on 5/11/12. Upon driving to the supermarket on 5/13, I identified 2 individuals driving my vehicle on the road. I pursued the individuals, while contacting the local police. The individuals were apprehended and the car was recoverd. The arresting officer mentioned that it appears that the criminal was a drug dealer as few containers of marijuana and cocaine wer found on the criminal, in addition he had few gang tattoos. The total damages to my car is approximatley $4000, insurance settlemetn was $24000. I contacted the insruance compnay on 5/14/12 and notified them of the auto recovery. They indicated that they will issue a stop payment on the check to the lien holder. I did not want to take possesion of the vehicle given that it was driven by drug dealers. I disputed with the insurance company to fulfill the settlement offer.
The check issued to my lien holder by my insurance company cleared on 5/19/12. The bank did not notify me that the payment cleared (i'll come back to this issue later). I continued to argue with the insurance company to fulfull the original settlement offer until 6/2/12 I finally got tired, and insurance company sent me a check for 3rd party items on my vehicle that was damaged (stereo stolen, rims stolen, etc). I cashed the the check on 6/5/12. The insurance company agreed to pay the body shop directly for all other damages to my vehicle. Due to work commitments, I have been out of town and I have not been able to send the vehicle to body shop for repair. On 6/14/12 I return home, and receive in the mail, the certificate of title for my vehicle! In addition, I receive a letter from my bank that the balance of my vehicle has been paid off by my insurance company and that the title has been released! I call my bank on 6/18/12 and they mention that my loan balance was reinstated because bank entered agreement with the insurance company to refund payment to insurance company and insurance company was required to return title of the vehicle that was released.
Since original payment of loan balance by my insurance company cleared, does this indicate that a valid agreement exists between myself and insurance company for the initial settlement offer? Also, since I now hold the vehicle title, does the transfer of title confirm the settlement agreement with the insurance company, requiring them to follow through on the settlement offer? Since I cashed the check for 3rd party items damaged from theft, does this change anything?
AnswerHello,
No one wants to have a car that has history with it related to the thieves, but your policy does not provide for that emotional dilemma and all the insurance company has to do is honor the claim to make you whole. No better, no worse. There are no allotments in the policy for a drug dealer using the car. When we repaired theft recoveries, many did not want their car repaired, but the fact of the matter is that the insurance company was under no obligation to replace the car, just because the insured did not want it back.
There are other issues going on here. If you look at your policy, it states you will assist the insurance company in the prosecution of those who stole the vehicle.
As for your questions about a valid agreement, that is past my scope and requires a lawyer's advice and this would require you contacting a lawyer personally to review your policy.
You need to speak with your ins company to see exactly what the status is at this point. If you are not careful, you could end up in a legal situation you don't want to be in here.
As far as the separate personal item claim, that was something you and your insurance company arranged probably through an endorsement of your policy or a separate home owners/rental claim that appears to be separate from the theft of the car. I simply do not have that information, but don't see where it would have a bearing on the settlement of your claim, but without the information, I don't know.
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