Expert: Charlie Barone - 10/4/2009

Question
Hi, Charlie. First of all, here's some background info.

I live in Florida, and my car was badly hit about a week ago by a hit and run driver. The police have found the driver, who actually lives four houses down the block from my home. The police report has not yet been made available, but I think it likely that the driver will be charged with both abandoning the scene of an accident and trying to conceal evidence, along with other possible charges.

Having reported the accident to my insurance company, my car was towed and will almost certainly be declared a total loss. The claims adjuster has not yet made a settlement offer. The car was a 1998 Honda Civic, with low milage and in excellent condition, and I expect the settlement payment, especially after my $500 deductible is taken out, to be way less than what it will cost to replace the car with one as stable and reliable.

Another expert on allexperts.com (s/he is now "maxed out," so I cannot submit a follow-up question) seems to be suggesting that I settle this through the other driver's insurance company rather than my own. This has raised a number of new questions.

Is it my choice as to whether to file a claim against her insurance company or my own? If so, would it be to my benefit to cancel the claim with my insurance company and personally contact hers instead? Do I stand, for any reason, to be better compensated by her insurance company than mine?

And, lastly, assuming there is reason to do so, how might I set out to discover who her insurer is?

Thanks for your help,
Jonathan

Answer
Jonathan,

Yes, it is up to you entirely which insurance company with which you file the claim. Depending on a lot of variables, outside of your deductible, it is hard to say which one would treat you better. Basically, each one owes you the actual cash value (ACV) for the Honda, which is defined as the cost to replace it with one of like kind and quality, so it is in your interest to do some shopping and see exactly what it will cost to replace your Honda. The ACV also includes sales tax and license transfer fees.

The police report will show who her insurer is. Or you can simply approach your neighbor and ask.

Charlie