Expert: Charlie Barone - 8/31/2009

Question
QUESTION: I live in Florida.  My car was properly parked when a woman hit my car and my car was thrown 60 feet away.  The total damages was almost $10,000.  The other party's insurance paid me for my out of pocket and deductible.  The other party's total coverage is $10,000.  Last week, I called my dealer to see if I can trade in my car.  The car salesman said that when he pulled up the records of my car, it was in an accident and the value of my diminished around $7,000.  The woman who hit my car filed for bankruptcy.  How can I file a claim with the party who hit my car when the repairs reached the maximum insurance coverage and the party who hit my car filed for bankruptcy?

Thank you,

Rita

ANSWER: Dear Rita,

Yours is not an uncommon predicament. However, your own insurance policy provides for both uninsured and underinsured losses on the part of a third party. You need to inquire with your insurance company in writing as to whether or not the UIM coverage applies to property damage. If they do answer affirmatively, then you can file a claim with your own company regardless of any exclusions in your policy for diminished value claims under first party benefits. Understand that your own company will treat you as if you are a third party and will be somewhat adversarial in their approach to the claim. You have a valid claim, nonetheless.

For DV help go to www.ICAN2000.com and look for local DV appraisers in your state.

Charlie

---------- FOLLOW-UP ----------

QUESTION: Hi Charlie:  I contacted my insurance company, State Farm and I was told that I haveboth uninsured and underinsured losses coverage but it only applies to bodily injury and NOT property damage. I will still check my policy. Do I still have a valid claim?

Thank you.

Rita

Answer
Rita,

I was afraid of that being the case, and this means that you are out of luck with respect to the DV claim. Or at least in terms of your insurance company and your UIM coverage. Since the at fault party is filing for bankruptcy, you may be completely out of luck.

Charlie