Auto Insurance Claims: insurance company cant determine liability, rear view mirror, storage fees

Question
I was stopped and my car was rear ended in a 4 car chain reaction rear ender accident 2 months ago. I was the last car hit in the chain with damage to the rear end and exhaust system.  The insurance company of the person who caused the accident says that liability has not been determined and cannot be determined because the second person who was hit is not responding to any inquiries from the ins. co. and neither is his lawyer, they also don't know if the first or second car caused the accident. I've been caused extreme hardship by not having my car.  In LA it's impossible to function or get to work without one.  Finally after 2 months of rental cars I couldn't afford to keep paying for I had to fix the car myself.  With all the repairs, 2 months of storage fees and rental costs I'm now in debt for $8,000 on my credit cards.  Also in the estimate the ins. co. made, Mercury Ins., they charged me $1,050 for betterment.  I drive a 1972 280SE Mercedes Benz 4.5 in mint condition.  I put $10,000 into the car in the last 2 years, it's perfectly maintained.  In the accident the entire exhaust system fell off of the car and was destroyed, they are charging me the $1,050 for the betterment to the exhaust. My questions are: isn't there a reasonable amount of time that this claim should be settled in, and how do I deal with the betterment situation.  The exhaust system had no problems at all before the accident.  I only have liability ins. on my own policy, also the person who caused the accident has the same insurance company as me Mercury.  Mercury is saying that the woman who hit me said she thinks she was hit first, that is what is causing all the confusion about liability.  I saw the whole accident unfold in my rear view mirror, it was the first car not the second that started the whole thing.  

Answer
On vacation and otherwise tied up..

Will make very effort to fully reply within the next 24 hours..

Here we go...

You have been involved in a multi-car chain reaction type of loss... as the lead car in line you should recover your damages "eventually".

I say eventually because chain accidents routinely involve the trailing car pointing fingers at each other as far as who hit who first... and that is critical to determing fault.

The order of impacts is what controls here and not who necessarily hit you.

If the rear car (#4) rear-ended 3# and pushed #3 into the rear of #2 thus pushing #2 into your rear then #4 would owe you, #2 and #3 for their damages.

How many impacts did you feel?  As the lead car, and especially if you clearly saw what happened behind you, then your version of the accident should be controlling as to the assessment of fault.

Did you notice the car directly behind you STOPPED before the accident?

What does the Police Report say as to the order of impacts?

What does the car behind you say about the order of impact?

What does #3 say as to the order of impacts?

What does #4 say as to the order of impacts?

Now you can see why this isn't a cut and dry issue.

Once the order of impacts is determined the next issue will be the issue of your damages.

Given the age of your car (regardless of what you have put into the car.. unless it was an engine and or tranny) it may well turn out to be a TOTAL LOSS in that the cost to repair the vehicle may exceed the car's Actual Cash Value (ACV) or "book value" as most people choose to call.

The "legal" measure of damages would be the car's ACV and not the cost to repair (if that should exceed the ACV).

Just about all States have FAIR CLAIM PRACTICES ACTS which sets forth parameters/time-farmes that carrier's must adhere to... check into this with your State's Dept of Insurance.

On the issue of Betterment... exhaust systems (as well as tires, batteries, etc) are parts that wear out...  if you were to be given a NEW exhaust system you would be better off than you were prior to the accident and the concept of INDEMNITY, which is controlling here, returns you to your pre-loss status (no better or no worst)... ask the carrier to provide you with a copy of their estimate(s)/appraisal(s), and the Total Loss Work-Up if the vehicle is being declared a Total Loss... also get complete details on the Betterment issue to see how much of a Betterment they are taking ($ and/or %).

You and/or youragent should be in contcat with all the involved carriers for all the parties to see what they are saying... do NOT rely on the carrier for the car directly behind you to do that.

If you feel that you are being jerked around threathen to go to the State Ins Dept and file a COMPLAINT and also start using the term BAD FAITH.. that should make the involved insurance company(ies) stand up, pay attention and take care of your claim.

Be firm but tactful...

Hope and trust that the above answers your question(s) and provides some direction...

Get back to me with any further issues/questions relative to this matter.

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Thanks