QuestionI was involved in a serious traffic accident. The "other" driver fell asleep behind the wheel and came across two lanes on the hyway and struck my car which was traveling in the same direction as he was, sending me out of control and into a concrete barrier. When tested at the scene he was arrested for being in violation of the Zero Tolerance Law. (Under 21 and testing positive for alcohol).
I sustained several injuries that required not only I but the passenger in my car be transported to a nearby hospital emergency room. I was admitted and she was treated and released.
My car was declared a total loss by my insurance company.
They have notified me that they would pay all the medical bills acquired by myself as well as my passenger and would then go after the other guys insurance co.
My question is like many others here. I owe more on the car than I expect to get for it. Although it does not seem to be the way things work, I had no liability whatsoever when it came to this accident. Am I to understand that even with this scenario, that I will be offered what could be far less than what I owe on the vehicle? This not only leaves me without a car, but with additional payments on something I no longer have.
It is not my intention to get any great financial gain as a result of this. I would simply like him to pay for what he did. At least put me in the position I was before the accident. To accomplish this, he would need to pay the balance of this car ($1200 difference than what I expect to be offered) and enough additional monies to put a down payment on another car.
The claim is still in infancy, but I would like to know a little more about what to expect.
AnswerHI Craig,
It is an unfortunate situation, but, the insurance company owes you for the fair market value of your car, not the balance of your loan. There are many reasons for this but there is no need to go into them here. It's just a simple fact. I know that is not what you wanted to hear but it is true.
However, you can make sure you do your homework to be sure they are offering a fair price for your car. Check out these websites before you get an offer.
Insurance companies will often make low offers on totaled vehicles. It is your responsibility to prove them wrong. You should look at several sources as follows:
1) www.nada.com
2) www.kbb.com
3) www.edmunds.com
4) www.autotrader.com
The last one, autotrader.com, will allow you to research currently for sale vehicle like yours in your area. These should give you a good idea of what your vehicle is actually worth. It is possible that even with this information the insurance company will not negotiate with you. In that event, you will need to hire a professional vehicle appraiser to inspect the vehicle and provide a written appraisal.
I hope this helps
Richard Hixenbaugh
