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Auto Insurance Claims/Tow company drops car in ravine - liability for loan gap
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Question
I recently slipped on black ice and ran approx. 40 feet into a ditch, miraculously causing very minor damage to the passenger side rear fender. After I was taken to the hospital (no injury), a tow company attempted to remove my car from the ravine with a single tow line and no tie-offs. They dropped the car, which rolled several times and is now a total loss. I did not sign any documents with the tow company. I have a substantial number of first-responder witnesses to the initial light damage, in addition to CHP written documentation that the initial damage was minor. One witness even stated that the tow truck driver said that he did not think his truck had the proper equipment, but then attempted to pull the car out of the ravine anyway! The tow company refused to submit the claim to their insurance, and attempted to bill me for their "service". My insurance company paid a fair market value for the car to the lien holder and will of course subrogate that amount against the tow company, but there is a deductible and I am left owing a gap of almost $7,000 to the lien holder. I have two questions:
1) Can I sue the tow company for the gap between the FMV and the loan payoff amount? I would not be in my current position of being unable to obtain another car due to the loan gap but for the tow company's negligence.
2) Are there regulatory agencies or any other governing body to whom I can report the tow company's negligence and subsequent nasty behavior?
The tow company owes you the same thing that your insurance company does which is the fair market value. It is no more your fault that they totaled your car than it is their fault that you owed more than it was worth. They are not the ones that agreed to and signed your loan document; you were. That is why you should always buy gap insurance if you cannot afford a payment that will keep up with a vehicle's depreciation.
Many states do regulate the towing industry. They are mostly concerned that the driver's are properly licensed and insured and really don't care about nasty behavior. That is for your insurance company and the courts to deal with.
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Answers by Expert:
webfoot
Expertise
Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.
Experience
20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background
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