Expert: Ron Cercone - 9/11/2010

Question
QUESTION: I was involved in an auto accident and had liability coverge only.  The person who hit me was at fault as she was driving on the wrong side of the highway.  I filed a claim with her insurance and was notified that the insurance company, at this time, is not able to accept liability and is unable to offer any payment for vehicle damages or storage because this was considered a medical emergency, such as heart attack, etc.  I had my vehicle moved to a mechanic's shop since homeowner's association did not allow me to keep my damaged vehicle in the front yard of my house.  After four months, the insurance company finally reached a decision after getting the medical reports on the lady that hit me.  They are going to reimburse me for the damages to vehicle and towing fees.  However, the insurance company will not reimburse the storage fees and the adjuster keeps refering to the letter he sent me.  Am I in no win situation here?  I owe three thousand dollars worth of storage fees as I could not keep the car in my house.  The vehicle is a total loss.  Is there any way I can get reimbursed for the storage fees I have to pay at the mechanic's shop?

ANSWER: The insurer owes for reasonable storage fees for the reasonable time to make you an offer. Nobody owes more than the value of the vehicle. The tower knows this.

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

QUESTION: Thank you.  The insurance company has stated they would cover up to three days of storage.  My car has been at the mechanic's shop for four months.  Is three days reasonable?  Do I have a fighting chance to ask insurance for more storage fee coverage.  What would be the reasonable amount to ask in this case?  

Answer
If they had completed their investigation and made a reasonable offer in 3 days on the car part of the claim, then 3 days is reasonable. But if it took them 2 months to make an offer, then they owe 2 months. Its their problem if it took them 4 months. Sue them and don't sign a release.