Expert: Richard Hixenbaugh - 3/30/2009

Question
Hello,

I am a full time real estate broker, I show sometimes 30+ homes/week, and my vehicle was involved in an accident 12/2008.  I drive a late model BMW with a navigation system.  The other driver was issued a citation, she was at fault, and her insurance company is Progressive.  I filed a third party claim with Progressive, they accepted liability, and they have been paying for repairs.  I have an email from the adjuster stating that they accept liability. They offered to pay $30/day for a rental, and this effectively got me an economy car, without a navigation system, which won't work for my business, and is not comparable transportation.  I requested that they provide me with a luxury car with nav, but they declined.  So, I rented an Infiniti M35 w/nav from Hertz out of pocket so that I had comparable transportation to run my business.  My car was in the shop for approx. 3 months, but now Progressive is only wanting to reimburse for a portion of my rental.  When prodding Progressive, they offered to "negotiate" but still don't want to pay the full amount, and not to mention the adjuster's manager is rude and combative.  I am inclined to file suit in small claims court against Progressive's insured to recover my loss, because I feel they are acting in bad faith.  Why should I accept a loss, when this isn't my fault? I analogize this as if I were a plumber and my truck was hit, then I would need a truck as comparable transportation. I cannot show clients in an economy car, without a navigation system. If I win a judgment against Progressive's insured, my understanding is that they will pay the judgment. I just want to recover my loss and be made whole! Thoughts?

Answer
Hi Jody,

You are absolutely correct. You should write a letter to the progressive adjuster and cc a copy to their insured. Send both by certified mail/return receipt requested. In the letter state that you rented a comparable vehicle that was needed for your business. State that you demand payment of the entire amount within 10 days or you will file suit against their insured. Enclose a copy of the paid bill. If they do not pay you then go ahead and file suit.

You are also entitled to be paid for the diminished value of your BMW. Now that it has an accident history the vehicle will never be worth the same as a vehicle with no accident history. Depending on the extent of the damage, the diminished value of your vehicle could be several thousand dollars. For more information on diminished value visit www.collisionclaims.com which is the website for Collision Claim Associates, Inc.

I hope this helps
Richard Hixenbaugh