QuestionQUESTION: Last week I was rear ended on the highway by someone who was looking the other way when traffic came to a halt. His insurance company has claimed responsibility. Although gratefully I've suffered no bodily injury or harm, my car was totaled. It was a 2005 mini cooper that I had just purchased 3.5 wks earlier from a dealer (used car, but new to me). I hadn't even made a first payment on it yet. The other driver's insurance has already given me a rental car and agreed to pay for my lost time from work and medical bills. I haven't yet rec'd a settlement offer for the car and I'm wondering what to expect. Because I didn't purchase something called 'gap' insurance, am I going to be liable for the fees, taxes, and reg I payed on the car? Will they potentially pay my car loan and then I'll have to go out and buy another car? Can I expect to get the down payment returned that I paid on the car? I'd appreciate any advice you might be able to give regarding my rights under california law. Thank you!
ANSWER: ********************FOLLOW UP****************************
Hi Kate,
I apologize if you felt my remark was rude or impolite,
it certainly was not meant that way.
It just happens that I have fallen in love with the Mini Cooper S Convertible, but the dealers in the Bay Area won't lower their price 5 cents because of the high demand and I just can't bring myself to pay the full bore price.
I sincerely request that you sent an e-mail to
experts@about.com and change the 8 rating to a 10.
Again, my apologizies.
Sincerely,
Bennie
10-24-07 1:45 PM PST
It's very possible that you just fell in love with the car and paid the dealers full asking price, which included an enormous profit to him.
The adverse insurance company is only obligated to pay you the 'Fair Market Value' of the car plus sales tax on that amount and reimbursement of the unused portion of the registration fees.
They will survey the market within a 50 mile radius and ask each dealer their lowest 'willing to sell for' price.
They will then average these prices and make you an offer on this basis. They will gladly give you a copy of their survey showing where each car is located, it's 'willing to sell for' price, the condition and mileage of each car.
Depending on the size of your down payment, it is entirely conceivable that you will be offered less than you owe the bank.
You should immediately start your own survey by visiting car lots and viewing cars similar to yours. Explain to the dealer that this involves an insurance claim and have him give you a written statement of the mileage and condition of his car and 'willing ro sell for' price. You should try to get at least 5 of these, which will be hard to do since this is a very popular car and in high demand. You should also purchase as many different newspapers as possible and keep copies of those that have a mini cooper advertised. This will be your ammunition to counter any low ball offer you receive. Settling this claim is a negotiation process, only this time you are the seller and the insurance company is the buyer. be assured that their first offer is going to be low and you will have to negotiate for a fair settlement, so do your research now so you will be prepared when they make an offer.
I hope this has been of help. Please write again if I can be of more assistance.
Your feedback on this answer will be greatly appreciated.
Sincerely,
Bennie
San Francisco Bay Area 10-23-07 6:47 PM PST
---------- FOLLOW-UP ----------
QUESTION: Oops, I was being sensitive and misread your intent. Thanks again for the help.
AnswerHi Kate,
I am glad to be of help. If you run into problems during the settlement negotiations, please write me again.
I reall would appreciate your writing to the address I provided and changing the rating.
Sincerely,
Bennie
10-24-07 10:20 pM PST
