Auto Insurance Claims: auto claim, comp anies, car accidents

Question
My daughter was in two car accidents two weeks apart in the same vehicle.  One accident is not her fault and the other party's insurance has agreed to cover the damage 100%.  The second accident the fault is unclear and is still being determined.  I've received estimates for both claims and each estimate is over $7,000 totaling almost $15,000.  The car is only worth around $8,000 to $9,000.  What is the best way to handle these claims?  Can I request payment for both, pay of the car, get rid of the car, and use the difference to buy a new car?  Or am I required to have the car repaired?


Answer
Hi Ruth,

I will try to explain how this will likely play out.

The insurance company from the first accident must pay the cost of repairs for the first accident.

Since the repairs were not completed before the second accident happened, the insurance company for the second accident will likely declare the vehicle to be a total loss. The reason for this is that when they assess the damage they also determine the value of the vehicle to see is the vehicle is repairable or should be totaled. In this case they will reduce the value of the car by the cost of the needed repairs from the first accident. So if the value of the car before both accidents was $15000.00 and the first acident repair cost is $7500.00 then the value of the car at the time of the second accident is only $7500.00. ($15,000.00 less the $7500.00 in needed repairs). So in the needed repairs from the second accident will cost also $7500.00 the repair cost is equal to the value of the car and the insurance company will declare it a total loss. The will pay you the $7500.00 and they will take the car. You should be sure that you receive the check for the first accident repairs before you allow the second insurance company to pick up your car. There will be no extra money because the 2 comp[anies will coordinate to be sure that no more that the actual value of the car is paid out.

I hope this helps
Richard Hixenbaugh