QuestionI have a serious dilemma! My car was stolen in May, found in June, and in mid June State Farm Insurance Company decided the car could not be repaired so they decided they would pay for it. However, the end of July I got a phone call from the insurance company saying that they have now decided that they want to repair the car and then return it to me. How can they do this once they've already made the decision on totaling the car out? I thought the decision that they made to begin with had to be the final one. My big question is can they really do this to me? Is this even legal? I was actually thinking this has to be against the law. I need help.
AnswerHello again, Arnetta,
You might have an enforceable contract for settlement of a claim IF you agreed with the insurance company as to their terms in the first instance. And that includes the critical element of price that they will agree to pay you. Even if all of the power is on their side, you still can enforce a settlement agreement. And it does not need to be a written signed contract in order to enforce the settlement agreement.
Now that I have your hopes up, here is how I am going to dash them. The company will say that one fact of the settlement with you turned out to be incorrect (i.e. that they could not find the stolen car), and hence the basis for formation of the settlement agreement is destroyed, as is everything that comes from that agreement.
If you cannot convince them to give you the money for the totaled car, then go for diminished value with your company http://www.settlementcentral.com/page0454.htm Diminished value claims will not fly as first party claims in some states. http://www.settlementcentral.com/page0455.htm insurance diminished value claims best if you can show third party liability wherein you face up against the one who caused the accident.
But in this instance, you may be able to make an end run and get a claim against the state if your state has a criminal recovery fund. This is where you can file a claim for the damages done by a criminal. You do not have to hang around a trial to see if the criminal is convicted. In fact, you do not even have to catch the criminal since your claim is against the criminal recovery fund, NOT the one who stole your car.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
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Hi Arnetta,
Dr. Settlement tried to sneak away for a long weekend, and look what happened: busted. I am accessing my e-mail at our hotel while the best of our half is getting ready for our outing tonight, so I will not have time to answer your question until late Sunday night.
I just wanted you to know that I had not forgotten you, and I hope that this delay will not cause you any inconvenience.
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
