Auto Insurance Claims: car rental reimbursement re auto settlement, damage settlement, fault insurance

Question
QUESTION: If you do not accept a property damage settlement offer for a totaled auto (which is not replacement value), is the "at fault" insurance company no longer be liable for car rental reimbursement? Yet if the offer is accepted they will pay?

ANSWER: Hi Teresa,
Once the at fault insurance company makes you an offer for the amount that they have established (based on their research, which they will give you copies) as the vehicles Fair Market Value (FMV), you are  given an opportunity to negotiate a better price if you have gathered supporting documents (dealer quotes, newspaper ads, etc.,).  At a point in the negotiation process, the at fault company will state an amount and tell you that it is their final offer.  If you don't accept the offer, car rental usually ends immediately or in 24 hours.
If you accept the offer, many times you are able to negotiate 2-3 more days of rental so you will have something to drive while looking for a replacement car.  It all depends on the company, you just have to ask.

I hope that you find this information to be helpful.

I value your feedback to my answers.  Please take a moment to rate my response.

Sincerely,
Bennie
San Francisco Bay Area

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

QUESTION: Bennie - thank you for the reply - but my question is - The at fault  insurance company stated unless their standing offer is accepted (verbal only) will they be liable for ANY reimbursement. If the offer is not accepted then there would be no rental reimbursement, it would be totally void. And if the offer is not accepted no recourse for further negotiations are to take place unless it is through an attorney- legal?

Answer
Hi Teresa,
As I understand your follow up question, the at fault insurance company is telling you that if you don't accept their standing offer right NOW then they are not going to cover car rental for ANY of the period that you had a rental.

I have never heard of such a demand and seriously doubt if it is legal.  As I stated earlier, they can stop paying rental once they have made a settlement offer of FMV that they have established from their research.

Any time a car is totaled, the insurance company wants to settle for the least possible amount and the owner of the car wants as much as possible.  This is why there is a negotiating process.  The insurance company presents documentation on how they arrived at your car's FMV and you present documentation as to why it's worth more than they are offering.  Your state insurance laws require the insurance company to negotiate in "good faith".

If this has been a long argumentative negotiation, the insurance company does have the right to make their final offer and state that any future negotiations must through your attorney or legal representative.

It looks like you are only left with two choices:
1) Accept the offer and the rental reimbursement.  You should get a check as soon as you sign the title over to the insurance company.

2) Decline the offer and hire an attorney to negotiate the settlement of the claim (his expenses would be out of your pocket) and you MIGHT risk losing the rental reimbursement.  There would be an unknown period of time before your representative could reach a settlement, and that could still be for the amount that is being offered now, and for you to receive a check.

Personally, I would take the offer that's on the table and walk away.  It sounds like this accident has already caused you enough stress.

Good Luck,
Bennie