vehicle accident and insurance question help please

masraum · 10-17-2017, 05:48 PM

My son was turning left through an intersection with lights on a green arrow. Someone coming from the other way blew the light and basically hit him head on. His car was totalled. He has a loan on the car. Neither driver got a ticket. Supposedly, the other driver admitted fault at the scene to my son and then somewhat to the cop, but maybe not quite as bad. Then the other driver gave his insurance company another story entirely.

The other insurance company is small and slow. My son went through his insurance company. He is supposedly not being found at fault. He owes on his car (he's only had it about 6 months and it's about a $13k car that's a year or two old with fairly low miles).

His insurance company mailed his bank (lien holder) a small check (10% of the value of the loan), then mailed my son a check for about 75% of the value of the loan. They also are sending some money to cover the Ubers.

My son got in an accident about 14 years ago in another state and got a DUI and then left the state and didn't drive for many years. a couple of years ago, he started working that out, so now his car has an interlock (got to blow a breathalyzer to start the car). Getting that thing removed from the car after the accident cost about $300 and then getting it put into a replacement car will probably be another $300 or so. His insurance says that was an add-on to the car and so they aren't covering it. My thought is that if the other guy hadn't hit his car, he wouldn't have this extra expense and therefore it should be covered. The theory is that his insurance is going to pay and then go after the other guys insurance for whatever they pay out.

So his insurance has paid about 85% of the loan, which leaves him owing the other 15% plus having to pay to get the interlock swapped which is a big expense to him.

What should he expect as far as being made whole. My thought is value of the loan and extra expenses incurred. It seems the insurance company has another idea.

What can he do or should he do to help his situation?

motion · 10-17-2017, 05:53 PM

I'm not sure about reimbursements related to the Interlock device, but the percentages being thrown about related to his loan are irrelevant. His payout is based on the retail, private party value of the car, minus his deductible.

racer · 10-17-2017, 05:54 PM

Insurance doesn't care how much he owed on the car, so I would not expect them to pay that amount. That is a risk of the owner's financial position They have a book of values for the car that was insured. Unless he can prove that to replace his exact car would cost him more than his payout, he will be "out of pocket" on that. As for the cost of the "device", I imagine that since it is not part of a standard car, he would be out of pocket for that cost as well. Since the other driver is at fault, your sons insurance will go after the otherside to cover expenses that the ins co is on the hook for. Worst one can do is become the squeaky wheel to try and get more than their initial checks are covering.

wdfifteen · wdfifteen's Garage

DON'T SIGN OR CASH THE CHECKS!!
This is just a first offer. If you accept it, it is all you are going to get. If you think you deserve more, don't accept anything from them. You can probably whine and complain and get a little more from them, or with a little work you can be made whole, but I would get the advice of an attorney before I accepted any offer for settlement.

javadog · 10-17-2017, 06:07 PM

He will get low-balled by the insurance company. In my experience, I have been able to get them up about 40% from their initial offer. I've also gotten them to cover all sorts of extra add-ons, the cost of the tag, even a percentage of the tires-based on the life left, any maintenance that was done recently, etc. He shouldn't have to pay his deductible, the other party's insurance should be the one paying the bill.

I don't know how far down the road you are, you may need to get an attorney involved to get it fully settled.

In the case like that, I don't know how the other party escapes without a ticket. Make sure you get a copy of the police report that shows the other driver was at fault.

masraum · 06:32 PM

thanks all, good info. I'll pass it along.

I'm getting the info about the insurance settlement second hand, so I don't know exactly what he's done or said or been told for sure. I had a long day and had a very short email waiting for me when I got home. Hopefully, he hasn't done anything that screwed himself.

WDFifteen, thanks, that's a great reminder.

Javadog, I sure hope you're right and we can manage that. We aren't trying to screw the insurance company, but the thought is that the other guy was at fault (which is probably harder to establish if he wasn't given a ticket for running the light) then the other guy should cover any and all expenses to make my son whole. If it was my son's fault, then I could see him being out cash on a few fronts (deductable and some expenses), but it wasn't (at least according to him).

I got a little more clarification.

The kid told his girlfriend while he was standing near my son that he didn't see the light because he had dozed off, but then he told the cop that the light was green so I guess it's a he said / he said situation. It's a shame that you can't get at the videos at the intersections to know for sure.

I've passed your advice along.

pete3799 · pete3799's Garage

See if he has gap insurance on it. My daughter had her car totaled and the gap ins. paid the balance on her loan plus the at fault drivers Ins. paid her deductible.

masraum · 10-17-2017, 06:41 PM

he does have gap ins. That's good news.

John Rogers · 10-17-2017, 06:50 PM

Get a lawyer as soon as possible, a good one with traffic accidents. Then make sure your son has so many aches and pains he can't work or jog or ride a bike, ETC. As you have found out, trying to be the nice person(s) in this and coming up against the other driver who LIED to their ins. co. deserves to be strung out!

ckelly78z · 10-18-2017, 03:26 AM

There are alot (most) of cars out there with bank loans running around on the roads, that given the same situation, the owner/borrower would be upside down on the loan if they wreck it. They owe far more than the car is worth possibly from previous car loan rollovers, so value of the car isn't a reflection of amount owed.

I would think if the other driver was at fault for this accident, you could get some satisfaction from their insurance company for re-installing the device, but may have to ask your own insurance company to help.

Getting a lawyer is always an option, as well as threatening to get a lawyer.

jhynesrockmtn · 10-18-2017, 05:09 AM

Have you seen the police report? From the description, the other driver is clearly at fault. Your son's insurance should be seeking reimbursement from them. As far as how much, I doubt anyone is paying to re install that device and he won't get more than PP value for the car but his deductible should be covered by the other party.

red-beard · red-beard's Garage

just a note on GAP insurance, my "add on" for GAP insurance from AAA is $40. Ford would have charged a whole lot more. And I can drop it as soon as the vehicle vs. loan equalize.

masraum · 10-18-2017, 04:53 PM

Thanks everyone.

The latest update from today.

Quote:

Haven't heard back from my adjuster yet, but I talked to my claims officer, and she told me that the other driver is definitely at fault. Also, that the reason my ins is paying it out is because the process takes a long time for the other (company) to pay out. The interlock is something that my ins isn't willing to help out with, but it is something that the other company will possibly pay for.

I take this as all good news, and it'll just be a huge PITA to get everything worked out in the end. In the mean time, he's racked up $500 in Uber fees, and that goes up every day. That's eating through his savings (or has already killed that actually).

javadog · 10-18-2017, 04:57 PM

He needs a little help on this issue. I don't think he has the life experience to get the reimbursement that he's entitled to. I would suggest that you step in and take over, or hire an attorney to work this for you.

jhynesrockmtn · 10-18-2017, 05:11 PM

No rental car insurance on his policy? If he is with a decent company, they'll pursue it, collect from the other driver and make him whole for his deductible. If he has rental coverage on his policy, he should be using it and not running up the Uber charges.

masraum · 10-18-2017, 05:37 PM

Quote:

Originally Posted by jhynesrockmtn

No rental car insurance on his policy? If he is with a decent company, they'll pursue it, collect from the other driver and make him whole for his deductible. If he has rental coverage on his policy, he should be using it and not running up the Uber charges.

No rental coverage, but the insurance companies are covering the uber charges. He lost his license somewhere that night, and hasn't gotten a new one yet, so he can't rent a car. He should be getting it replace in the next day or two, hopefully.
There are lots of small issues that have all combined to make this a huge pain for him. We are hoping that he'll learn and grow out of the pain. We've been helping with and shouldering this sort of pain for him for many years.

mattdavis11 · 06:11 PM

I don't think he can lawfully operate a vehicle that does not have an interlock device, so he will have to absorb the immediate cost of transportation, and will be reimbursed. The at fault drivers insurance shall pay for damages to the vehicle and the contents, which includes the interlock device.

I would tell the insurance company that the car doesn't work, therefore the device doesn't work. Pay up.

masraum · 10-19-2017, 04:52 AM

Quote:

Originally Posted by mattdavis11

I don't think he can lawfully operate a vehicle that does not have an interlock device, so he will have to absorb the immediate cost of transportation, and will be reimbursed. The at fault drivers insurance shall pay for damages to the vehicle and the contents, which includes the interlock device.

I would tell the insurance company that the car doesn't work, therefore the device doesn't work. Pay up.

Actually, he can, but he's got to have the device on a car for a year before they'll consider everything done and gone. If he goes too long without the device, the year resets, and I think he's at 8 or 9 months.

T77911S · 10-19-2017, 07:44 AM

get a lawyer