QuestionI was rear-ended in California Highway 101 when I was stopped in traffic. The driver of the car that hit me was at fault and my car has been determined by my insurance company (Amica Insurance) as a total loss. The person who hit me has insurance from AAA.
Summarized below is what my insurance company is going to cover me for:
1) Amica has determined a payment that is 20% less than the Kelly Blue Book Value for my car.
2) Amica will only pay $20 for each day car rental whereas the actual cost is $28/day.
3) Amica will provide me only with a rental upto a max of 1 week after they make payment for my loss. They are in a terrible hurry to pay me. My insurance agreement states a max of $600 for car rental and max. $20/day i.e. car rental for 30 days
Given that the other party is at 100% fault, I am surprised that Amica is not looking after my interests. I belive AAA Insurance should pay a fair price for my loss and all expenses related to my loss i.e. car rental, etc. I would not have incur a loss and pay for rental expenses if a negligent driver collided with my car.
I feel Amica is not looking out for my interest and not sure how this insurance process works. Please let me know how the process works and how I should deal with it to be treated fairly.
Thanks.
AnswerHi Kush,
The first thing you must understand is that an insurance company only look out for their own interestes.
Amica owes you for the fair market value of your car. Insurance companies will often try to settle total loss for an amount below fair market value. If you do not agree with the amount they are offering, it is up to you to prove them wrong. You will need to research the value of your car from several sources such as:
1) www.nada.com
2) www.kbb.com
3) www.edmunds.com
4) www.autotrader.com
The last one will allow you to search for currently for sale vehicles like yours in your area. Average all value infor to come up with the average market value. If you still do not get anywhere with Amica, you can hire an independent appraiser to assist you.
As for the rental coverage, Although you have a limit of $600.00 Amica is not required to pay out all of it. In fact they usually do not pay rental at all in total loss situations except as a courtesy. Once they pay you for the total loss the claim is closed as it is assumed you will go out and buy another car the next day after receiving the check.
As for the difference in the rental costs, it will be the other insurance company that will need to pay that. Once all is settled and you turn in the rental car, you will submit your paid bill to the insurance company indicating how much Amica paid and demanding that they reimburse you the difference.
I hope this helps
Richard Hixenbaugh
