QuestionI was in a car accident and was run off the road and the other vehicle kept going. I was driving my mothers vehicle at the time and when i called the insurance company to place the claim they said that she was no longer covered by comp and collison b/c suppossedly she didn't have pictures taken of her vehicle over 2 years ago when she got her new car. The reason she got a new car is b/c someone had hit her and totalled her car. SO she never had to changed her policy she just switched cars. so for two years she has been thinking she has had comp and collison on her car and she has not. well my question is what can we do. They never sent her any letters stated she did not have comp & collison, they did not notifiy the bank where she has her car loan out of to let them know that she does not have comp insurance like the bank said they were supposed to do. since i have comp & collison on my car would my insurance company be liable to pay for the car i was driving b/c i was in a hit in run. i need some help desparetly i don't know were to go our who to ask. Do i have any legal rights. The car is a 2004 Chrysler Sebring, the front end is smashed in and all for doors where dented b/c i was logged in between two trees.All doors still open though. Also wouldn't it be the insurance company responsiblity to let my mother know that she needed to have those pictures taken or to even inform her that she did not have comp & collision. she goes in there every month to pay her bill shouldn't they inform someone that has a brand new car that they don't have comp and collison on there vehicle. please get back to me as soon as possible. i don't know where to turn and i don't have the money to fix it with out the insurance company plus she still has a loan out on it so i don't want her to have to pay for a car she doesn't have. do i have any options at all?
Answer
Dear Tiffany,
I can see that this is a tough situation for you, so I will try extra hard to suggest some strategies that should work for you and your Mom. I will thus put in a lot more time than I usually would, in the belief I can give some information that will be helpful to you and Mom.
You have asked four different questions, which I will do my best to answer under four different issues, as follows.
FRIST, IS YOUR MOTHER IN FACT COVERED FOR THIS ACCIDENT?
• Get your mother's insurance policy and look at it. Ask her agent about it if you do not know how to read the Declaration page. You are looking for Collision coverage or UIM property coverage. See whether or not it includes Comprehensive and Collision or UIM property damage. Was she paying for C&C all this time but the insurance company did not have her covered? If so, that is an easy pitch to make or they could be liable for a bad faith claim.
• Get ahold of the bank people and make sure you have the proper witness names and what it is that they will state insofar as concerns both the usual and customary way of doing business regarding a notice that C&C is not included in the policy. Find out if someone at the bank will carry the ball for you and make phone calls to her company and insist that the bank stands to lose the value of the loan if the insurance company does not repair the car.
• Contact your State Insurance Commissioner: http://www.settlementcentral.com/links.php
• Find out what they have to say about notice to the policyholder.
• What is the purpose of the rule—to document the condition of the car. Duh, there surely was not this kind of damage when she bought the car, so why can't they at lease agree to fix the structural damage and the tin damage and painting?
• Why cannot you argue that other evidence supplants that of the photos and is just as reliable? There is some information here, where at least you can gather a couple of ideas to help you with witnesses. Sample insurance witness statements: http://www.settlementcentral.com/page0196.htm
• Is there any way around the rule, such as an affidavit from the sales person or the former owner as to the good condition of the vehicle? Surely they could say that it did not have this much damage at the time they last saw the vehicle. Show them a photo of the wrecked automobile. Combine this with a statement from your mother (or any other family or friends who can so testify) that the vehicle was in good condition and she had done no damage.
SECOND, DOES HER POLICY HAVE A UIM PROPERTY PROVISION?
Probably not, but worth asking about. Some policies have a Uninsured/Underinsured Motorist (UIM) property damage provision. If she has it, there will be a deductible, but she will be able to get the vehicle repaired. Here is the point: A HIT AND RUN DRIVER IS COVERED UNDER HER UIM COVERAGE and so if she has UIM this is the best way to go.
THIRD, COULD YOU BE PARTIALLY LIABLE, AND THUS MAKE A CLAIM AGAINST YOUR OWN POLICY?
• Turning the claim over to your own Comprehensive & Collision coverage will get you nowhere since that portion applies solely to your own car.
• However, admitting liability should get you coverage. Assuming you did have a hit and run driver who is primarily the cause, you would have to search your memory to see if your reaction to the cause was also negligent in that you panicked and did not control the car properly whereas a reasonable person would have had no problem controlling the car and avoiding the trees.
• Naturally this is going to cost you A LOT OF MONEY for three years because your own insurance will increase owing to the "at-fault" accident. Don't know how much the increase will be, but it should come off after three years. Guess it the current charge is like $900 a year, it could go to $1,050 a year for three years. BUT YOU BETTER CHECK WITH AN AGENT FIRST SINCE THIS IS JUST A GUESS, BASED UPON WHAT HAPPENED TO A FRIEND OF MINE.
• But if the damage to Mom's car is significant, perhaps you can reexamine your reactions when this occurred and perhaps you were negligent in not handling the car properly once the event started. Thus, your mother can make a claim against you under your liability policy.
FOURTH, WHAT CAN BE DONE WHILST YOU HAMMER IT OUT WITH THE INSURER?
• Hit the rental provision of your mother's policy. If the car was on loan to you short time for your own transportation, then ask about the same clause in your own policy. If neither of you has a rental policy, get one for next time. They are inexpensive to add.
• If no rental policy, then I do not know the answer to how to get transportation whilst you fight with the company. A remote possibility, but worth a try, is to tell her insurance that until they give you a fair repair order or a actual cash value in the event of a "total", you are entitled to a rental car. Tell them that you will insist that they arrange for it to save both of you money inasmuch as if you have to arrange for it, the cost will be higher for them. Tell them that you consulted an attorney (which is true in this case) and that he told you that they need to furnish a rental car until your Mom's is repaired, or until they offer you a fair actual cash value buyout in the case of a "total".
BE ALERT FOR SIGNS OF PERSONAL INJURY
I know that you introduced this as not being a personal injury claim, but with that big of a hit, there is a probability that your body did suffer trauma sufficient to cause soft tissue injuries. These types of injuries can sometimes start out as nothing, but within a week or so one might start to notice aches and pains. Pay attention, as this is the first sign of delayed onset of soft tissue injury pain.
So you should be on the lookout for signs of injury that may manifest in the coming weeks. Even if you do not see a doctor until a month following the accident, DO NOT EVER SHY AWAY FROM SEEING A DOCTOR AND ATTRIBUTING YOUR PAIN TO THE ACCIDENT inasmuch as often soft tissue pain will worsen in time. What was an occasional ache may turn into a frequent pain and then you will have to see the doctor, whether medical doctor or chiropractor.
Here is a page from my website that tells you it IS NEVER TOO LATE TO REPORT PERSONAL INJURIES FROM A CAR ACCIDENT:
http://www.settlementcentral.com/page0104.htm
Managing Your Medical Care after an Auto Accident:
http://www.settlementcentral.com/page0203.htm
Finally, write A DEMAND LETTER—DO NOT PRESENT THIS CLAIM OVER THE PHONE. A mere phone request will not be given as much weight as a letter in which you present the arguments I have given you above.
By the way, tell your Mom to consider using any unrepaired areas or uncompensated diminished value losses as a deduction on her income tax return. You will want to first obtain a GOOD SOLID WRITTEN OPINION of her loss, and then clear the deduction with her income tax preparer. If she itemizes, you could get a pretty good chunk of change in savings. For example, let's say that your expert says she suffered $6,000 in diminished value, and her company pays $2,000, leaving her with a provable loss of $4,000. Ask her tax preparer why she cannot deduct that on her 1040, using IRS Form # 4684, which deals with causalities.
I trust that this information has been of value to you, and thus I respectfully request that you locate the feedback form on this site and leave me some feedback.
Best Wishes,
Dr. Settlement, J.D.
www.SettlementCentral.Com
