Car accident involving two parties with same insurance company?
Hi there,
My dad was involved in a car accident where the other party was at fault in WA state. Both parties have same insurance company. The Insurance company deemed the car as a total loss and sent a check of $4000. Meanwhile my dad had to go to a doctor because his neck is super stiff. Did anyone have similar experiences? $4000 isn’t enough for a new car, and they can’t afford car payments at this time (my mom has was just laid of), should we get a lawyer to contact the insurance company to demand higher compensation? Thanks!
The insurance company does not owe your Dad a new car. They owe him the amount he could have reasonable sold his car for just before the accident. Apparently that amount is $4000.
Your Dad owned a used car worth $4000. Therefore, he should take the $4000 and purchase another used car for $4000 cash. Then he is right back where he was before the wreck – driving a used car worth $4000. If he wants to take the $4000 and put it toward a new car and have payments, that’s an option. But the insurance company and the other driver do not owe him a better car than what he had.
Getting a lawyer does not change what his car is worth.
As far as the injury claim goes, that is still pending. That will be a separate settlement that will be worked out once your Dad is done treating and is feeling better.
July 17th, 2010 at 9:03 am
The insurance company does not owe your Dad a new car. They owe him the amount he could have reasonable sold his car for just before the accident. Apparently that amount is $4000.
Your Dad owned a used car worth $4000. Therefore, he should take the $4000 and purchase another used car for $4000 cash. Then he is right back where he was before the wreck – driving a used car worth $4000. If he wants to take the $4000 and put it toward a new car and have payments, that’s an option. But the insurance company and the other driver do not owe him a better car than what he had.
Getting a lawyer does not change what his car is worth.
As far as the injury claim goes, that is still pending. That will be a separate settlement that will be worked out once your Dad is done treating and is feeling better.
References :
July 17th, 2010 at 9:09 am
You can check with a lawyer to see if you have any recourse against the insurance company. You can also check to see what the car was worth prior to the accident. If it had value significantly exceeding the $4000 the company paid out, you can contest the amount.
References :
http://www.edmunds.com
http://www.kbb.com
http://www.nada.com
July 17th, 2010 at 9:58 am
Look, car insurance doesn’t buy you a new car. It only pays what your old car was worth. NOT payoff, not what you paid for it, not what it costs you to buy a new one, not the down payment.
Actual Cash Value. Dad can estimate that, plugging in all the info on his car, to http://www.kbb.com, using the private party sale value. That’s PROBABLY what he was paid, and it’s all he’s entitled to.
Hiring a lawyer, at $250 an hour, isn’t going to get him anything more, than what that old car was worth.
References :