November 19, 2009
Help-auto accident question/unlicensed driver/not our fault/losing vehicle?
ah2daking asked:
Okay, here's the situation. The person that was driving our minivan did not have a license, and was in an accident that was not his fault, and we have the police report and witness to prove it. Their insurance company is paying 100%, but is totalling the vehicle, which means we really lose out. We owe $9000 on, and they are only giving us $4200 if we keep it and $3600 if we give it to them to junk. It is going to cost $6000 to fix, so we're screwed either way. I am wondering if it would be worth contacting my insurance company or not, since the driver did not have a license, or if that doesn't matter since it's not his fault. Is there any other type of legal action we can take against the drivers, since the insurance payment is so much less and we're basically losing our vehicle, and having to come out of our pocket so much. Any help you can give is appreciated. Please do not comment on the driver, as you do not know the situation, and I don't feel like explaining the details…
I am not trying to say it's anyone's fault about what we owe, obviously. But had the elderly man NOT pulled out in front of the driver, who was driving perfectly fine, my vehicle wouldn't be totalled. I am losing my vehicle and still paying on it. If anyone put themselves in my place, I am sure you can clearly see that it doesn't seem fair. Please do comment if you do not have anything helpful to say, I am not a child. Thanks anyways.
Atlanta Donate Junk Vehicle
Okay, here's the situation. The person that was driving our minivan did not have a license, and was in an accident that was not his fault, and we have the police report and witness to prove it. Their insurance company is paying 100%, but is totalling the vehicle, which means we really lose out. We owe $9000 on, and they are only giving us $4200 if we keep it and $3600 if we give it to them to junk. It is going to cost $6000 to fix, so we're screwed either way. I am wondering if it would be worth contacting my insurance company or not, since the driver did not have a license, or if that doesn't matter since it's not his fault. Is there any other type of legal action we can take against the drivers, since the insurance payment is so much less and we're basically losing our vehicle, and having to come out of our pocket so much. Any help you can give is appreciated. Please do not comment on the driver, as you do not know the situation, and I don't feel like explaining the details…
I am not trying to say it's anyone's fault about what we owe, obviously. But had the elderly man NOT pulled out in front of the driver, who was driving perfectly fine, my vehicle wouldn't be totalled. I am losing my vehicle and still paying on it. If anyone put themselves in my place, I am sure you can clearly see that it doesn't seem fair. Please do comment if you do not have anything helpful to say, I am not a child. Thanks anyways.
Atlanta Donate Junk Vehicle
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Comments on Help-auto accident question/unlicensed driver/not our fault/losing vehicle?
9:12 am
Atlanta Donate Junk Vehicle
You are out of luck. You are lucky because legally the other driver could sue you, if though they were at fault, because you permitted an unlicensed driver to operate the vehicle. In doing so, the other party could argue that the unlicensed driver created an unsafe situation even though they did not actually cause the accident. The insurance company issue has nothing to do with the driver..it is simply the book value of the van. Sorry for the bad news.
3:27 am
Atlanta Donate Junk Vehicle
Your carrier will know about the accident anyway when they do an ISO search upon renewal so you might as well contact them and get a second appraisal. If your carriers estimate is higher, let them subrogate against the other carrier.
FYI, the driver will matter eventually since your carrier will want to talk to them for a statement and they will want to know if they had your permission to use the vehicle.
4:15 am
Atlanta Donate Junk Vehicle
Do not comment on the driver? Your asking if you should take legal actions b/c the driver did not have a license. That would be talking about the driver.
If you gave permission for the driver to take your car there is nothing you can do. And legally you could get in trouble for letting an unlicensed driver to drive your car, I would not push that matter.
If you did not give the driver permission you can sue the driver.
Also try talking to your insurance company. If you keep the car see if they will pay to fix it. So you will get money from one company and a fix car with another.
1:39 pm
Atlanta Donate Junk Vehicle
Be glad you're getting what you are. It isn't the other driver's fault that you are upside down on your loan and owed much more than the worth of your car.
All they owe you in the case of a total, is the fair market value of your car. If you entered into a loan situation that was that bad, why didn't you have GAP insurance on the vehicle? That would have paid the difference between the worth and the pay off price.
Also, I think you got a bit confused in your question. The insurance will not give you MORE if you choose to keep the car and less if you give it to them, so you may have reversed those figures.
Frankly the insurance could have said they had no liability since the driver was not licensed and shouldn't have been there, and if he hadn't been there the accident would not have happened, and refused your claim. Cash the check, pay off the balance you owe, and make better decisions in your future.
12:06 am
Atlanta Donate Junk Vehicle
What the insurance company is offering compared to what you owe on the vehicle has nothing to do with the vehicles worth. If you think the Insurance company is not offering enough, you can get 2 or 3 values from experts and/or blue books and present the values to the Insurance company and ask them to re-value your Van. YOUR insurance company is the best place to ask about what you or they can do to go after the other driver. That is what you pay them for.
3:08 pm
Atlanta Donate Junk Vehicle
In most states – when the cost to repair a vehicle equals or exceeds 75% of a vehicles value – state law requires that it be a total loss.
When you owe more than a car is worth -it's called being upside down.
The insurance company owes you the Actual Cash Value of your vehicle. That means – what you could have reasonably sold the vehicle for – just prior to the wreck – considering it's age, mileage, options and condition.
As far as the claim on your van goes – if you have collision coverage on your van – it can't hurt to contact your insurance company. Let them evaluate the vehicle and see what they offer. Each company uses it's own processes to evaluate a vehicle. So your company may be able to do better.
If you settle with your company -they will then pursue the other company for re-payment. They will collect the money they paid and your deductible. Once they get paid- they will forward your deductible onto you.
In terms of book value – no insurance company uses Kelly Blue Book. The NADA is the industry standard. You may want to check the value of your vehicle on their web site. However, these values are for vehicles that are in good condition. If your paint was faded/chipped – or the interior filthy- you would have to deduct from the value.
The driver not having a license should not affect the claim. You would have to speak to your agent to find out how that could affect your policy.
1:45 am
Atlanta Donate Junk Vehicle
You should file a claim against your own Collision Coverage. However, your insurance company does have the right to take your vehicle if it is declared a total loss. It sounds as if you may have a very high interest loan. That is not the at fault drivers responsibility. Do you by chance have GAP coverage? If you cannot agree to a settlement amount with your insurance company, most policy have an arbitration clause under the general provisions which allows you and the insurance company to hire a third party mediator who will determine the value of the vehicle. It is binding.
You may be able to get the vehicle repaired for under $6k, if you use recondition parts. Usually, if you keep the vehicle, you are getting less than if the insurance company takes the vehicle. They subtract the salvage value from the ACV. I think your numbers are reversed.
2:04 pm
Atlanta Donate Junk Vehicle
They dont owe you what what your balance is left on your loan. They owe you the actual cash value of your car.. nothing more.. nothing less.
its not their fault you made a bad financial decision and paid way to much for a car.
2:32 am
Atlanta Donate Junk Vehicle
As mentioned, market value is owed… not what you owe on the deal you made to finance the vehicle (obviously not a good deal). Sorry, that is just the way it is. It's not a good idea to pay almost twice what a vehicle is worth.
Your driver being unlicensed should not come into play at all. At worse your carriers adjuster might risk alert you and this would be considered when your policy renews, but I doubt they will do this. If you report it to your carrier and they ask about it, simply tell them you had no idea the person's licenses was not in order (if this is correct). You may either want to find out how your carrier determines values on total loss vehicles or file a claim in order to find out. You also don't mention where the other carrier got their value from. Many carriers use 3rd party companies, such as CCC. These values are going to almost always be lower then a book value. While most carriers _don't_ use a retail value (such as NADA retail) some still do. If your's does, you could get paid a lot more from your carrier. I won't go into details but if they do, it's in your financial best interest to file the claim under your own policy and have them seek recovery after your claim is paid.
PS your driver being unlicensed would not come into play in making the liability determination.