QuestionSorry my situation is a little complicated, there are a few questions relate to cost, please bear with me.
1) About 1000 miles away from home, our car was hit by a falling object on the highway 5 near San Diego last Saturday - disabled and towed to dealership 2 miles away.
2) we flied home at Bellevue, WA on Sunday as the vehicle could not possibly be fixed in a couple of days, per dealership.
3) Insurance company finally sent over appraiser the following Wednesday. The appraised dollar amount is based on a body shop's rate close by to the dealership and some aftermarket parts; Warranty is an issue, as the body shop (different from dealership) have no way to provide warranty for their work 1000 miles away. The appraisal amount is about half of what dealer's estimate. So, I decided to ship the vehicle back home first.
What are the following cost insurance company should cover:
Hotel stay, rental car, taxi, car transportation to home, car storage, car towing. My insurance company told me that they only honor the appraised repair cost minutes deductible plus $15 dollars a day rental. And I was told by a claim representative that the appraised value is final unless the repair shop prove otherwise, non-negotiable as far as parts and labor rate.
I read my insurance policy statement and searched internet, but couldn't find information that deal with similar situation as my case, please help.
Thanks for your answers.
AnswerHi Alex,
Sorry to see that insurance screwed another victim. There are a lot of choices here that could be worked out. But it does require cooperation of three parties---maybe four if your bank still is on title. These are you, the adjuster, and the auto body shop owner.
If your bank is on title, then you will have to work out some of this with them. But if the adjuster is thinking of totaling your car, you can always try to get the repair costs down by agreeing to used or non-Original Equipment Manufacture's Parts (NON-OEM).
Which brings up the first point you discussed regarding aftermarket parts. Is your ride an older vehicle or a newer vehicle? If the former, then aftermarket is fine; if the latter, then fight aftermarket parts as a source of diminished value to your vehicle.
Let's take your questions this way. What you elected to do with your car is not the business of the insurance company. If your car is now under warranty, and you wanted the repairs to be under warranty, yet the San Diego repair facility would not offer you that guarantee, then you would have had a potential claim for diminished value.
Some states do not allow first party claims for DV, but I believe that Washington does. Your could check with the country's very best insurance commissioner, Washington's Mike Kreidler http://www.settlementcentral.com/links.php
By the way, since your car sounds kind of new and the damage sounds to be kind of serious, why not read up a bit on diminished value claims http://www.settlementcentral.com/page0455.htm
FAQ DV claims http://www.settlementcentral.com/page0454.htm
First, let's take your reaction after the accident. You bought rental insurance. That is what you were entitled to for the remainder of your trip until your vehicle was repaired.
If the amount of the rental payment is inadequate, then there are three answers. First, that might just be the amount you agreed to in your policy. If so, increase it for next time.
Second, if no amount is specified in your policy, then you are entitled to a reasonable sum to replace your ride. Now I doubt that your ride could be replaced for $15 a night, so the amount seems inadequate.
Third, figure out what time it would have taken down in San Diego to repair the vehicle and you are entitled to a rental car for that time. If they will not come up on the amount and it is not $15 specified in your contract, give the world's best insurance commissioner a call: Mike Kreidler in Olympia, WA. [Just a side note here. Anyone who sees the work of all the insurance commissioners, as I do, knows that most of them are in the pocket of the insurance industry. There are darn few who are independent and fighters for the little guy, as is your own Mike Kreidler, so you be a fighter to keep him in office. Anyone who visits the websites of the various state insurance commissioners will see that most offer NOTHING of value for the consumer. But there are a few, and Washington's Mike Kreidler is a prime example, who stand for the insured against the pressures of the powerful insurance industry.]
YOU ARE ENTITLED TO RENTAL PAYMENTS even if you did not rent a car during that time. Let's say that you returned home and used your second car. Your company still owes you the reasonable cost to rent a similar size and quality car as yours.
As for a hotel, the answer is no. Your comprehensive will not cover hotels. You were going to stay at a hotel that night. You get a rental car, but no hotel. Taxi can be a reasonable reimbursement from a tortfeasor, but I do not know if your comprehensive covers it. Car transportation home? No, you get the rental car. If you were going to drive home anyway, then you drive the rental car home.
Storage? Yes, if incurred while awaiting the appraisal on Wednesday or awaiting repairs in the ordinary course of the repair facility's backlog. No, if incurred while debating back and forth among the repair facility and the adjuster and you. Once a reasonable course of action has been agreed to by the adjuster, you do not get extra storage days so you can debate him.
Car towing? Not unless you paid for it. Most policies have towing and rental coverage in a package, so check to be sure that you do not have it.
Appraisal amount versus the dealership repair costs? You can take the vehicle to any shop you wish. Now it could be true that the dealer may have higher costs than the insurance appraiser. BUT you are NOT BOUND by that appraiser's report. The insurance company can do with that as they wish, but they CANNOT MAKE YOU TAKE FAR LESS THAN A SHOP WOULD CHARGE TO REPAIR YOUR VEHICLE.
Since you have the car up in WA now, why not take the effort to have a third valuation on the costs of repairs?
Another angle is to consider hiring an expert who can run interference for you between the adjuster and the body shops. http://www.settlementcentral.com/page0457.htm expert property damage for insurance negotiation
First thing to do is to brush up on your rights in dealing with the adjuster versus the body shop. http://www.settlementcentral.com/page0456.htm
I believe I have answered all of your questions. Just let me know if you have any additional concerns.
Best wishes,
Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com
