Auto Insurance Claims: Accident with car owned for 14 days, diminished value, yr warranty

Question
Good Afternoon Richard. I am hoping you can assist me. I was invoved in an accident on 11-14-06. A car came into my lane (he was cited for speeding) caused the person in front of me to t-bone him. I reacted and attempted to go around both cars for fear of rear ending the person in front of me. The second car then hit my car taking off the left front hood of my car, axel fell out and both wheels came off. The 1st was car at fault and the police report and witness say the same. Now, he is 17 and only has 25K liability. My car was 14 days old, and was a certified pre owned with a 100,000 mile 7 yr warranty.

My problem is, the insurance company wants to repair the car and I dont want it back for several reasons. 1) it was like brand new 2) safety 3)no longer would have the warranty. I am currently getting an estimate from my own body shop. Do I have the right to refuse to take the car back and demand they pay me for what I paid for the car only 14 days prior?

Your assistance would be greatly appreciated.

Diana

Answer
Hi Diana,

This can be a difficult and confusing process. The insurance company will only take the car if it is declared a total loss. They will generally only declare it a total loss if the claim cost is at or above 75% of the value of the vehicle.

You should also be aware that if the vehicle is repaired it will have a lower value than it did prior to the collision. Its called "diminished Value".  You are entitled to be paid for the diminished value in addition to the cost of repairs. Depending on the nature and extent of the damage, the diminished value can be quite substantial. In some cases it could be several thousand dollars.  If you would like to learn more about diminished value, please visit www.collisionclaims.com .

It is also possible that the combination of the cost of repairs, rental car expense and the diminished value can be combined to get the insurance company to total the vehicle.

I hope this helps
Richard Hixenbaugh