QuestionAfter restoring a classic Jag I bought, a tow truck I called thru AAA had an accident with the car. Tow truck's ins. Co. declared the car totaled and offered me a settlement amount within the first two weeks, that allowed me to buy-back the car as salvage. They told me to fax a copy of my title and they would cut a check that night and overnight it to me.
I did just that, but since the car had been in the process of restoration I had not yet transfered title into my name, though the previous owner, released liability to me and I had the Pink slip which was signed over to me, a bill of sale and a DMV Printout showing that I had purchased the car.
Meanwhile, they canceled storage and the rent-a- car I was using after 22 days. They took a month and a half to actually send the check we settled on, claiming they needed more proof of ownership. (Why?) Finally they had me sign an affidavit as to my sole ownership.
A day late and a dollar short. As they had cancelled storage at the body shop where I would have had them restore the damage enough to drive the car. Without the funds from the check to pay them to start repairs, nor could I afford to pay the additional 2 1/2 weeks storage myself, so I had to have the Jag towed home. There was no direct access for the Tow driver to back the car up the driveway so I had to drive it. As I reached the top of my ellivated driveway, the car started to roll back and there was no way I could stop it as the brakes wouldn't seem to hold. My not yet certified salvaged by the insurance co., un-insured at this point, Jag
rolled directly into my neighbors car smashing both her door and fender. With no current insurance and no money to pay her out of my pocket I lose twice as the Insurance check for the Jag now has to go to my neighbor to pay for her repairs.
Can't I do something to the Ins. Co. because indirectly both subsequent incidents would never have occurred had they sent the check out timely? Can I charge them for the expense it cost me for transportation and additional storage I did spend while I waited to receive my check? Can I sue them for damages?
Finally, doesn’t the insurance co. need to send me some kind of proof via paperwork to give to DMV that the car was totaled and sold back to me as salvage?
AnswerHi Robin,
I'm sorry you're in this situation.
Depending on the age of your classic car, it may not be necessary for the insurance company to actually do any title work. Some states only require that a Salvage titled be obtained if the vehicle is less than 15 or 18 years old. If the vehicle is older than that it is not necessary to obtain a salvage title. You should check with your state DMV for the specifics in your state.
Suing the insurance company would likely do you no good. They had no way of knowing what your ownership status was until you sent them a copy of the title. Then when they saw that it was not titled to you, they needed to get additional information to verify that you actually owned the car. They were willing to overnight you a check until they saw that they did not have the correct proof of ownership. As for the accident that occured after you got the vehicle home, again, it was not their fault that the brakes did not work or that you did not have insurance on the vehicle. I'm sorry to say that I do not think you would have much of a chance of winning.
I hope this helps
Richard Hixenbaugh
