Expert: Claims Guy - 11/9/2008

Question
Hi there, and thanks for taking my question.

I was involved in an automobile accident last week. I was hit from behind on
the highway by a driver who just wasn't paying attention. My car ended up
being totaled out.

His insurance (Travelers) claimed 100% liability for the accident. I have been
checked out and X-rayed, and have no injuries, luckily. The issues I'm having
are coming from the settlement amount Traveler's is trying to offer me.

My vehicle was a 2005 Ford Focus ZX3. Mileage:46,138. I bought the car new
and it was still under a 100,000 mile warranty. They want to offer me their
actual cash value of $8,697.

I still owe $3,000 left on the car so that would leave me with just over $5,000
to try and replace the vehicle with. I feel like since I was not at fault, it would
only be fair for me to be allowed to replace my vehicle with a comparable one,
with a warranty still intact. In the Kansas City area where I live, I have done
some extensive research and found that it is simply impossible to find such a
car for less than $11,000.

I have never been in this situation before, I'm a 22 yr old college student.
They will only deal with me since the title is in my name. I am just wondering
what my options for coming to an acceptable agreement with them are?

Any help would be greatly appreciated!

Thanks!

Answer
Hello Andrew,

Travelers is correct in offering you the actual cash value.  This is what they owe according to the law.  They are taking the place of their insured who is legally liable to you.  If you sued him, the most you would be awarded is the actual cash value of the vehicle before the loss.

The replacement vehicle you choose is irrelevant to the settlement.

You can take the $5000 balance and use that as a down payment on your next vehicle.  Once you finance it,  hopefully your new payment will be similar to what you have now.  But you will have a new car.  Or you could choose to buy a used vehicle and end up in a similar scenario to where you were before the accident.

A couple other items that will help you:

*since you have medical bills, they will owe you a bodily injury settlement.  The value of this will depend on the amount of your medial bills and other factors.  If you need help with this, send me a note once you get all your bills.  Keep in mind there will be several different bills from the hospital, ER doctor, ambulance, and xray tech, etc.

*they owe you for loss of use of your vehicle.  Normally you would get a rental car.  if you don't need a rental, they can pay you cash for this.

Good luck!