QuestionMy daughter was in a car accident. The person who hit her told police that he was speeding and ran a red light and couldn't stop in time. This was well documentated by police. The car was totaled and the other drivers Insurance company offered $3,100 to my daughter. The problem is that she owes $4,500. This is her only means of transportation for her and her husband.
She has also sustained injurys which include knee, chest and ankle injurys which require medical care. Her doctor today give her a handicap sticker and told her that she should not work for two more weeks until she could be seen again.
She was suppose to start a new job just before the accident and has already missed one week. They are without any transportation and still owe for the car that has been totaled. She is having dificulty sleeping and is in constant pain.
What are her options?
AnswerLot of issues and questions.
Unfortunately your duaghter's plight is not all that uncommon.
Request that the other company provide you with how they developed their Actual Cash Value (ACV).. used to be referred to as the "book value" before companies started using data bases such as N.A.D.A., CCC, etc.. The data bases capture more info and generally provide a more accurate ACV.
With that said let me next state that developing an ACV is not an exact science and if you do your own homework (NA.D.A. and Red Boob Books, local dealers, etc you should be able to negotiate to a fairer number (assumining that initail offer is low... may not be).
Check with your lender and ask if they carried (GAP coverage). Some lenders require this coverage when you finance a car and GAP insurance covers the shortfall when there is one between what is owed on the car (final payoff number) and the ACV of the car. Lenders at times take this coverage to protect themselves but the cost is built into your monthly payments on the car. Make sure to ask in writing and request a reply in writing to keep everything above-board.
On the injury claim that will have to wait until your daughter fully recovers or reaches Maximum Medical Improvement (MMI)
What state are you in and is it a No Fault state? If a No Fault state you will have coverage for your medical bills ands more than likely lost earnings that can be documented.
If you're in a No Fault state, do you have a Tort remedy?
If not a No Fault state, did you daughter carry Medical Payments coverage... if so that will cover her medical up to the limit (usually $1,000, $2,000, or $5,000.
If you're thinking about an Atty..... don't for now... keep in mind that an Atty will take 33-40% of your action. You can get an Atty later if you think the insurance company is jerking you around.
Even though the car may be totaled the company should give you a certain amount of rental (until you can reasonably reply the car.... usually 7-10 days). Ask about it...
Who is the company you are dealing with?
They will proably be accomodating at this point in the hopes of keeping your daughtert from getting an attorney.. play that angle for all it's worth...
Hang in there and take things in order and you will get through the process in decent shape.
Hope and trust that the above answers your prelimiary questions and provides some direction.
Feel free to get back to me with further questions/issues relative to this matter.
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Thanks
