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? asked in Cars & TransportationInsurance & Registration · 2 years ago

Insurance being unfair?

I got in an accident last week. The other person's insurance put them at fault and decides to pay for our damages. They provided us with a rent a car and were sending a check to a collision shop to repair ny car. The shop calls us tell us the damages were too much. Which sent us back to the insurance where they told us they will give pay off the rest of the car payment on our car and the remaining money be used to purchase another vehicle, which isn't that much, also are wanting to take back the rent a car. Is this right. What can I do now? I feel they are taking advantage somehow

7 Answers

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  • May
    Lv 6
    2 years ago

    Despite your poor English, it sounds as if they have decided to "total" your car because the cost of repairs are at least or more than about 70% of "fair market value". This is standard procedure and you have no say in the matter.

  • StephenWeinstein
    Lv 7
    2 years ago

    This is right. They have to do this. They are not taking advantage. They are doing what the law requires them to do. They are not allowed to pay for any repairs if the total of the damages exceeds a certain percentage of the vehicle's value. Once they find out that the damage is over that percentage, all that they are allowed to do is to pay what the vehicle was worth -- they can no longer pay for any repairs and they can't give you more than the difference between what the vehicle was worth and what you owed on it.

  • ?
    Lv 7
    2 years ago

    That's exactly how it's supposed to work.

  • Robert
    Lv 7
    2 years ago

    When a car is totaled you are usually given the "Blue Book" value of the car. That's it even if the car is worth much more to you. The rental car is usually provided during a finite length of time. It can be for as little as a week depending on the policy.

  • regerugged
    Lv 7
    2 years ago

    your earlier answers are correct. There is a further option. You can buy back the salvage and hire a body shop to do repairs. They can use used parts or after market parts to keep costs down.

  • ?
    Lv 5
    2 years ago

    Find out what the value of your car was before the accident. Since it's been totalled, that's all the insurance company is required to pay. If you're getting more than that, you have no reason to complain. If you aren't getting enough to pay off the car and have a decent down payment on another one, complain. They should also pay for the rental car for another week to give you time to find a car.

  • Anonymous
    2 years ago

    If the repairs exceed the guidelines where you live, the insurance company can write off the vehicle. The current loan holder is the first to be paid off and you get any remaining proceeds which may not be much.

    < and the remaining money be used to purchase another vehicle >

    You will need to take out another loan which should leave you in the same position as you are now. You don't get to have your current vehicle paid off and then buy a similar car and not owe anything on it.

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