Should I handle the claim myself?

by alaska1 » Tue Apr 20, 2010 08:10 pm

My new car (less than 200 miles on it) is totalled. The other party is at fault. My insurance wants to know whether I want them to handle the claim or by myself. Which is better for me and do I have to pay the $500 deductible? Also since the car is 5 days old, shouldn't I be getting what I paid for?

Total Comments: 8

Posted: Tue Apr 20, 2010 08:44 pm Post Subject:

You will be paid it's value. What you paid is not relevant. I could pay $50,000 for a 1980 Ford Escort... it does not mean someone is obligated to pay me that if they damage my $1000 car.

My recommendation is to see which carrier will give you the highest value on the vehicle and file with that company.

Posted: Tue Apr 20, 2010 10:13 pm Post Subject: Let your insurance company handle it

You pay premiums for this very reason, for your insurance company to represent you in the event of a claim. Let your insurance company deal with the other party’s company. The other company is ultimately responsible for the payment of your car and that includes your deductible. Your company will collect that amount for you.

Posted: Wed Apr 21, 2010 12:45 pm Post Subject:

My 5 day old Elantra with less than 200 miles on it was totalled. Other car went thru red light and slam into my car. The other party's insurance is going to call me today to give me a price.



Being this was a 5 [count em... 5] day old car, I would suggest that you contact the New Car Dealer that sold this car to you and request a sales agreement outlining the "Total" cost to you to purchase an identical car. I believe the person that damaged your car is responsible for all & any expenses related to getting back to where you were before the collision.

I could be wrong.... but, I doubt it.

Posted: Wed Apr 21, 2010 03:58 pm Post Subject:

Tscope’s answer above is absolutely correct and FK’s statement “I believe the person that damaged your car is responsible for all & any expenses related to getting back to where you were before the collision” is also correct, however, I wanted to take a moment and explain both a bit farther for you.

In Tscope’s scenario, you paid $50,000 for a 1980 Ford Escort (which we will just pretend has a value of $500). With that, you have a $500 car and if you sold it, you most likely would only get $500 because it is only worth $500. Therefore, in the event the car is totaled, you are only out $500. To bring you back to where you were before the collision, the insurance company would only be responsible to pay you $500. This concept is called “indemnify” – to bring you back to where you were prior to the loss.

Posted: Mon Apr 26, 2010 05:54 pm Post Subject:

So you could file a claim under your insurance policy's collision coverage. If you do that your company will pay your damages less your deductible and then try to recover that money from the person who hit you's company. The downside is that you are on the hook for the deductible until and if it is received.
You could wait and see what the other company offers and if you are not happy ask your company to help. I don't believe there is a time limit.
I am wondering how much depreciation you will have to eat after 5 days and 200 miles.

Posted: Wed Apr 28, 2010 06:54 pm Post Subject: Should I handle the claim myself?

I have settled with my insurance company. Ended up losing under $150.
$75 for the mileage (.50 per mile for 150 miles)
$12.50 for electronic filing by the dealer
$4 for tire recycling
$50 for title fee

I can pick up the check at my agent's office as soon as I returned the car title and key. Haven't got the title from MVA yet.

Posted: Mon May 03, 2010 11:48 am Post Subject:

I’ve been following this thread closely since you started it and wondering about the outcome. Good you got back damages so quickly. Does any mention of this accident come up on your driving record or claim history? That just might make your insurance hit the roof at renewal time.

Posted: Mon May 03, 2010 10:26 pm Post Subject:

You can still sue the responsible party for your unpaid damages ($150) in small claims court, but not for more than that amount. (If you were to collect more, you would ow it back to the insurance company under the principle of subrogation.)

Indemnity means to be restored in whole or in part to the condition that existed prior to the loss without profit or gain. The insurer has restored you in part, the court can restore you to whole with another $150.

Problem is, what's your time and the aggravation worth? Because the court will not give you anything for that.

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