QuestionI just got rear ended by a school bus and my truck is totalled. I have gap insurance and Im not worried about the vehicle getting payed off but what about getting a new vehicle? I dont have the money to make a 2,000.00 dollar down payment on another vehicle. Is there a way that I can get the money neccessary from the insurance company to make a down payment on another vehicle?
AnswerHi Daniel,
The insurance company will pay the actual cash value of your truck, and no more. If you were upside down on the loan, then your gap insurance will cover the difference. You get no bonus for being so far in debt versus the value of your vehicle. Hence, the direct answer to your question is NO—you do not get any extra money to buy a new vehicle.
That answers the question you asked, but I do have four other thoughts to share with you:
1) get full value for your vehicle;
2) try using cheaper repairs in order to keep your truck;
3) do NOT ignore soft tissue injuries;
4) negotiate with your bank and the adjuster in writing—it makes you seem more determined.
OK, Daniel, here we go:
#1. Tips to get full value for your truck.
Fight the actual cash valuation with your own research and communicate in writing. My favorite sites for valuation are www.Edmunds.com and www.autotrader.com. They want to know your zip code, and then they ask for a range in miles to search. Don't limit yourself to your city: it is reasonable that someone could go up to 400 km to pick up a used car. That way you will get a lot more information. Be aware that you should pick the option "any distance" from your zip code.
You can use information from local papers, advertising flyers, car dealerships, and the Internet.
Be aware that the prices shown are the "asking" price, not the actual cash value. But also be aware that the insurance adjusters have used a computer scan of sales that were at the trade-in value, NOT the actual cash value.
If you have made major item replacements, above and beyond normal maintenance, you need to document them and ask for a review of those extras. For example, a rebuilt transmission or the like will add value to a used truck. How about new tires or a new stereo system? The issue is: how much (if any) did they increase the FMV or actual cash value of the car. See this link and scroll to the bottom for more information on that topic. Car Accidents: Totaled, Repair, Valuation, Your Rights http://www.settlementcentral.com/page0007.htm
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#2. Try using cheaper repairs in order to keep your truck;
This is yet another approach. First you must get your bank to work with you to allow the repair at a lesser cost and keep your truck. Consider lowering the repair cost by repairing with USED and/or NON-Original Manufactures' Equipment (OEM) PARTS and stipulating to ignore some cosmetic damage; that will allow the insurance company to do the repairs within the percentage of allowance of actual cash value that it has already specified
Here is some general information on rental car rights http://www.settlementcentral.com/page0458.htm following auto accident damage.
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#3. Do NOT ignore soft tissue injuries.
If your truck was totaled, then you were in a pretty hard crash. I am willing to bet that within two weeks you will notice a dull ache and that ache will become a pain with physical activity later this Spring if not treated.
Listen to your body and to get medical attention when you feel any aches or pains that continue for a day or more. You were in an accident that was hard enough to “total” your truck, there likely was sufficient trauma to cause soft tissue injuries.
GET MEDICAL CARE FOR YOUR INJURIES—if you have any aches, DO IT NOW. You were involved in an accident with a lot of impact. It is likely your body suffered trauma sufficient to cause injuries. And there is no reason why you should suffer. Plus, if you get medical or chiropractic care, you are entitled to recover for personal injuries from the tortfeasor.
DO NOT SETTLE YOUR CLAIM UNLESS YOU ARE ABSOLUTELY CERTAIN THAT SOFT TISSUE INJURIES WILL NOT REAPPEAR ONCE YOU STRESS YOUR BODY WITH PHYSICAL ACTIVITIES OR JUST DAILY LIVING AND WORKING. That Plays Right Into an Insurance Tactic Regarding Inducing Early Settlement of Injury Claims.
Let's just finish up this topic of early settlements so you get the full picture of the advantage to them and the risks to you. Insurance companies like to settle early because the general damages—claims for pain and suffering—are always minimal, but continue to grow with continued medical/therapeutic care over the months. Therefore, the insurance adjuster will try to settle before the claim merits a larger pain and suffering element. This makes good sense for the insurance company. A claim that is still active after 12 months, with an injured claimant still undergoing treatment, will settle for a lot more pain and suffering money than a claim that is settled after two or three months of treatment.
In soft tissue cases such as this, the full extent of most injuries is not known immediately after finishing early rounds of treatment, because the injured person has to undergo some of the wear and tear of everyday life, including the pounding his body will receive from a day's work. Even jobs that appear not to be physically demanding can be hard on an injured body.
For example, have you ever stood all day with few breaks, as a store checkout clerk or a jewelry salesperson does? Or sat all day at a computer, as a secretary or phone service center employee does? Many jobs will interfere with healing, and you have no way to know how your body will respond until you have experienced sufficient physical exposure to load-test the ligamentous scar tissue as you heal.
Plus, who will pay for your medical care incurred AFTER you settle? What if you were to settle now and nine months later when you are suffering at work and the pain starts to become too much, and you go to a doctor only to discover that you can expect a course of treatment that will cost a lot of money? After you settle your claim, all further treatment is YOUR responsibility. Except in specific, unusual situations, you cannot go back and re-open a settlement.
Here is page from my website that shows in detail why you should never make an early personal injury insurance claims settlement http://www.settlementcentral.com/page0211.htm
And, of course, once you settle, THAT IS IT: you will never see another dime in pain and suffering money. By the way, did you know that getting an early settlement is a favorite trick of the insurance adjusters? Please see my website wherein we show Insurance Claim Adjuster Secret Tactics http://www.settlementcentral.com/page0092.htm
I know that you think this is going on too far with this one topic, Daniel, but I HAVE TO TELL YOU that this is a REAL danger that I have seen many times. So just have patience a bit longer and commit yourself to read the following:
There may be a dull ache at night following a day at work or some physical activity or pain the next morning. DO NOT LET LITTLE PAINS GO UNATTENDED SINCE YOU DO NOT KNOW WHETHER THEY WILL CONTINUE OR GO AWAY. We all hope and believe that such little pains will disappear soon. But on the other hand, we have no way of knowing since this is the way serious fractures and soft tissue injuries can behave.
So, when this happens, even if a couple months or more post-treatment, do not hesitate to SEE A DOCTOR AND ATTRIBUTE THE PAIN TO THE ACCIDENT WITHOUT EQUIVOCATION. It is NEVER TOO LATE TO REPORT PERSONAL INJURIES FROM A FALL ACCIDENT http://www.settlementcentral.com/page0104.htm
"No medicine: no money"; medical costs increase worth of personal injury insurance claims http://www.settlementcentral.com/page0045.htm
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#4. FINAL TOPIC, Daniel: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let her know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking her what the options are to resolve the matter fairly should she not agree to a reasonable claim value. In other words, let her know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that 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
P.S. I apologize for the delay in answering you, but the flu laid me low for this past week, and I do not wish that on anyone as it was debilitating.
