QuestionQUESTION: Hello Justin,
A week or so back, I was involved in an accident. A gentlemen pulled out in front of me and destroyed my car. The insurance company made me an offered that I declined due to them not including the $8000 in aftermarket performance upgrades I had on the car. Yesterday, they offered an additional $1000 (in which I understand I wouldn't get nearly as much as I put into it out).
They also told me I have to return my rental vehicle on Friday. I have had a vacation planned for months. Now I'm going to have to pay for a rental vehicle for the entire next week, that I wouldn't have had to pay for had this not happened. Isn't it the insurance company's responsibility to take care of any cost incurred due to the accident? Do you not get any days to look for a vehicle after you find out what they are going to pay you?
Also, in purchasing a new vehicle, I'm going to incur sales tax, tag, and title fees. Is the insurance company responsible for these fee's also? I have heard they are responsible for up to the amount of taxes you paid. Any truth to this?
ANSWER: The way a total loss is handled differs from State to State, but in general here are your answers:
1. Isn't the insurance company responsible for taking care of any cost due to the accident?
Answer: NO, it is the person that caused the accident that is responsible for your damages, and you must "mitigate" (avoid incurring unnecessary costs) your damages.
2. Do you get any days to look for a vehicle after getting a total loss offer?
Answer: Sometimes. It really depends on the company's policy and the individual adjuster or claims office you are dealing with. The argument is that on a vehicle that is totaled, it can't be used, only replaced so there is no "loss of use". If you get paid for rental for very long on a total loss, then it is because you are in a State that requires some limited rental on total losses or the insurance company is being nice.
3. Do you get fees and taxes?
Answer: Sometimes. As an example, in Texas, the Administrative Code and the Tax Code both say that when an insurance company pays for the total loss of a vehicle, then no sales tax is due. The reason is that a property/casualty settlement is not a vehicle sale. Again, I must disclaim this as different in certain States.
In general, the measure of damages on a claim like yours is determined by tort law, which can be slightly different based on which State you are in. Basically, the value of your vehicle should be determined by using some acceptable method of appraisal. The most recognized method (in my opinion) is the USPAP methodology. Just like a real estate appraiser would do, the proof of your vehicle's value lies in what other vehicles like yours are selling for on the open market.
Unfortunately, most insurance companies do not really use an acceptable methodology, they simply pay a third party vendor to give them a market value report, and depending on who the vendor is, these types of value assessments can be way off from reality. Your only option if you are not satisfied with the amount of damages you are getting offered, is to litigate the case and hire a professional to assist you with documenting the value of your loss, not particularly in that order.
I hope this helps.
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QUESTION: So I have to pretty much eat the cost of a rental or not go on vacation? That's horrible!
I have an Ohio license, but I just moved to NC. So everything falls under NC's law correct? It looks like NC and OH have 2 very different laws on fees and taxes..
ANSWER: The State where the accident occurred is the law that controls.
Now, as for the vacation. Let me give you an example of what you might be up against.
1. Can you prove you have been planning the vacation since before the accident?
2. Why can't you change the dates of your vacation slightly so you can get this settled?
3. You don't have a family member or friend that would let you borrow a vehicle?
4. Why not just buy a car right now?
Now I know those questions may seem silly, but the underlying argument is that the insurance company, nor the other person is responsible for your lack of financial ability to replace your vehicle quickly, they are just responsible for the damages they caused. The reason you are claiming you can't go on vacation without getting a rental seems to be that you don't have the funds to buy a car right now, not that your previous car is totaled. Whether your vehicle was damaged beyond use or not, it does not make you entitled to just indefinitely rent a car or go on vacation in a rental.
I have handled cases that went to trial on these matters and when somebody claims unusual rental expenses due to some extraordinary circumstance (like having a pre-planned vacation), it is normally required that there is very good evidence of why the trip or other circumstance could not be altered as to time frame, and in the case of a total loss, the main question is normally, Why didn't you replace your vehicle? The answer of "I was waiting on a good settlement figure" is not sufficient.
I hope that makes sense!
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QUESTION: I'm not saying I can't buy a car due to finances. What I'm saying is realistically 2 days isn't enough time to buy a car unless you're just going to jump into to something. I don't know very many people that'll just drive to a dealership and point out a car and ride off. It takes time to look for a car. Took a year for me to find my current car. I understand they can't give you this long, but I would think there would be some type of grace period.
I can actually prove my vacation has been planned for months, as that's the way we have to set them up at work. Dates can't be changed again because they are planned out a couple of months in advance. Being the summer months just about all the weeks are booked.
No family here. All of my family is 400 miles away in Ohio.
Honestly, until they called me back yesterday, I wasn't 100% sure it was going to be totaled. I was told with the added cost of my aftermarket things, it might push my cars value up enough to where it wouldn't be a total loss.
AnswerI didn't see a question in this response, but if you would like to discuss the matter in more detail, I will be happy to try and assist you. I am fairly easy to find on the internet as an expert in lost value and insurance claims matters. Information is always free at Petty Details, LLC!
I think you get it, though. You seem to be thinking it through thoroughly. And, in many cases, insurance companies do indeed give you a few days to try and get a vehicle after they make an offer on a total loss. Do your pleading in writing and require they respond in like. I always gave 5 to 12 days depending on circumstances.
So as for your answers. . . let me further show you what you're up against:
You can prove it has been planned for months? Okay, then can you prove you have asked to have the dates changed? Who else at your work has a vacation planned soon? Did you ask them if they would swap with you? Will your job put in writing that you can't change your vacation dates?
Also, you're argument about 2 days not being enough time to buy a car is not a statement of fact, rather one of opinion. If you'd like to get into the details of the matter, then let's discuss what you're considering in a replacement vehicle, and why you can't quickly get a vehicle. I know a lot of people that pull into a dealership and point at a car and drive off. They normally have decided what they want before they go to the dealership. I would not give a person more than two weeks to find a car to buy, personally. Unless of course there is some special circumstance or the vehicle was rare or unique or something to that effect. Anyway. . . I get you, and yeah, I do think it sucks. To fight or not to fight, that is the question.
I'm not advocating harassment, but I do suggest diligent persistence. Frequent and direct counter communication and demands are a useful tactic when attempting to get a better settlement. Squeaky wheel analogy. . . .
