QuestionHello,
My son's 95 Explorer was rear ended when he stopped at a crosswalk to let a ped pass. No one was hurt. The accident occurred 7/4/06 in Orange County, CA. The other driver's insurance (AAA of California) has taken 100% of the blame. They have determined that the SUV is totaled. We are in agreement with the adjustor's offer of $5700. However, he insists that WE must take a $1731 deduction from this amount and retain ownership of the vehicle. He says they NEVER take possession of a vehicle (unless it was their insureds and they had collision coverage) and we must find a salvage yard who will buy it from us. I've already been told by a certified mechanic that we will never get that kind of money for it. The adjuster keeps saying that "AAA is under no contractual agreement with us to take our wrecked car".
We feel that since their insured totaled our vehicle and is completely responsible that they should take the car.
I'm also concerned about the rental car allowance they've given us. They say it will be good only until July 13. What if we haven't settled with them by then? Can we make them give us ample time to come to an agreement? My son, needs transportation, he's away from home at college in California (we're in Oregon). Also, there will be a charge for storing the SUV at the auto body shop it's at if we don't get this taken care of soon.
We only carried liability insurance on our Explorer, so we can't take this to our insurance.
We're feeling pressured give in to them because time is running out for the rental car. As you can guess, time is of the essence.
Many thanks.
AnswerDear Todd,
Sorry for the delay; going to bed after 4 AM used to be something I might recover from pretty fast, but not these days, at this age. So I got behind on my work and I hope my delay did not result in any anxiety or loss.
Insurance adjusters like to use the pressure of deadlines. Do not make a bad deal just to avoid a few days of rental car charges.
Let's address that topic first. Yes, they do have the right to withdraw the rental car once they have given you a day or so to accept a good faith buyout offer. So, if that offer were a good faith offer, and the time to consider or accept it has come and gone, yes, they can cut you off on the rental car.
But WAS THIS A GOOD FAITH OFFER? Maybe some of our insurance friends who read these answers can come to my rescue here, because so far as I know, THIS IS NOT A GOOD FAITH OFFER. The kicker is making you buy back the salvage. They are treating you as if you were their insured and this is a FIRST PARTY CLAIM, where their contractual language controls. Instead, it is a third party claim, and so far as I know, you take your money and walk. The storage yard costs and the disposition of the vehicle are their responsibility.
YOU OWE THEM NO DUTY TO DISPOSE OF YOUR VEHICLE OR TO BUY IT BACK FROM THEM. They have the duty to pay to repair or to replace your vehicle, PERIOD. Who cares what THEIR POLICY is regarding totaled vehicles? Their company policy is irrelevant inasmuch as you are in NO WAY BOUND by whatever policy they may have on this topic.
Tell the adjuster you want her to repair your car with used and/or non-original manufacture's equipment (NON-OEM) parts and watch her squirm! You might consider this as an alternative to having to go out and buy a replacement vehicle.
A good place to start for inquiry on this is your state insurance commissioner http://www.settlementcentral.com/links.php
I would WRITE THEM TODAY AND TELL THEM THAT THIS IS NOT A GOOD FAITH OFFER AND THUS THEY ARE NOT ELIGIBLE TO CUT OFF THE RENTAL OBLIGATION.
Can we now back up to the issue of what to do with the vehicle? Have you thought of stipulating to have used and/or non-original manufacture's equipment (NON-OEM) parts? You could cut maybe 40% off the bill and not affect the quality of repairs.
Or, stipulate on a better repair cost, buy back the car, repair it with NON-OEM parts, re-title it through your state patrol, and go on from there to own it or sell it.
Personally, if they want to stick to the plan they presented, I would goose up the actual cash value figure and fight to reduce the salvage purchase price. That combination could make the repair, re-title, and later sale of the vehicle more attractive. You can do your own research at autotrader.com and edmunds.com. Use a big distance to seek prices within (i.e. 300 miles from your zip code). Remember, these are asking prices shown.
Finally, let's take a look at your decision to forego Uninsured Motorist Coverage (UIM) on your son's car. Can you please tell us why you do not insure your son and his passengers? Liability only is no protection whatsoever against the real problem—and that is always the UNISURED "other guy" who is going to hit your son or his passengers, causing great personal injury. But your son and his passengers will have no protection whatsoever beyond basic medical payments from your PIP. How have you provided to pay for your son's general damages (pain and suffering, etc) if you have only liability insurance?
Here are a couple of pages that should give you all of the answers you are looking for.
The Smartest Way to Buy Auto Insurance http://www.settlementcentral.com/page8006.htm
How to buy Motor Vehicle Insurance http://www.settlementcentral.com/page8008.htm
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
