Auto Insurance Claims: Hit and Run on Financed Vehicle, uninsured motorist coverage, pristine shape

Question
QUESTION: I was involved in a hit and run accident on my financed vehicle. At the time of purchasing my vehicle, the dealership suggested I get a familiar one with them; i agreed. I paid almost 6 a year for FULL COVERAGE. I had Collision w/$500 ded. Comprehensive w/$500 ded. and Uninsured Motorist Coverage along with many others. The insurance company failed to respond to my numerous calls which I have documented on detailed phone lists from my cell phone company. After a month of nothing from my insurance company, I contacted the autobody in which they said they'd take it to when I initially filed the claim. The autobody owner explained to me that my car had been already taken to a salvage yard?!?! I immediately called my Insurance company and began filing a complaint against them to the Insurance commissioner in my state. I was upset because I still had many belongings in the vehicle at the time of my accident. Eventually a letter of settlement was mailed to me in the amount of $8,000. If I accept this, it pays of my car leaving me with nothing. I am upset with the treatment from my company in dealing with this matter. I have copied all cell phone records, the certificate of my vehicle being certified, and list of maintenance to my vehicle showing I truly kept my 2002 Ford Explorer in pristine shape. I want to file multiple claims against my insurance company. I didn't pay full coverage for poor treatment in the event of an accident. Can I file multiple claims? I don't want to be left with nothing when its all said and done...please help...Thanks


ANSWER: Hi Ricky.

You do not need to file multiple claims. You have one claim for the total loss of your vehicle. Insurance companies will often try to low ball you on the value of your vehicle. If you do not agree with the value they are offering it is up to you to research and assemble proof that your vehicle is worth more. You can check the following websites:

1) www.nada.com
2) www.kbb.com
3) www.edmunds.com
4) www.autotrader.com

The last one will let you search for currently for sale vehicles like yours in your area. You should print out all value info that you find, average all of the figures and submit your findings to your insurance company. If they will still not negotiate with you, you can invoke the appraisal clause of your policy. Then you would have to hire a professional appraiser and so would the insurance company. If the 2 appraisers do not agree on a figure they would then select a 3rd party umpire appraiser to settle the dispute. You and the insurance company would split the cost of the umpire.

Also, you should find out the location of your vehicle and go there to remove your personal belongings as well as your license plate.

I hope this helps
Richard Hixnebaugh

---------- FOLLOW-UP ----------

QUESTION: Thank you...I have found vehicles close to 10 thousand...my only worry is that is settle with the insurance company and get a check for $5 dollars after my car is paid off...I had good credit when i bought the car and now its not so well. My final question is...will i have to accept a settlement where just my car gets paid off and I have no vehicle. I thought thats what uninsured motorist coverage was for. Thanks

Answer
Hi again Ricky,

If you negotiate a settlement with the insurance company that your vehicle is worth $10,000.00 and the payoff on your car is $8,000.00, the insurance company will pay the finance company $8,000.00 and they will pay you $2,000.00. What ever the amount of the settlement, the finance company gets paid first and you get what ever is left.

Uninsured motorist coverage has no connection to your claim. It only comes into play if you are hit by someone the does not have insurance coverage.

I hope this helps
Richard Hixenbaugh