Expert: Gary - 2/19/2008

Question
I have a leased 2006 Honda CRV that was hit in the rear while parked causing extensive damage to the vehicle.  I filed a claim through my insurance company and the car was repaired at an auto body shop.  The repairs included repairing frame/unibody damage, replacing the fuel tank and fuel pump, as well as extensive body work.  The total cost of the repair was $14,000 ($11,000 initial assessment + $3,000 supplemental repairs).  My insurance company valued the car at $21,970 at the time of the accident and, as a result, did not total the car.  I have since received the car back and have encountered numerous problems with the vehicle (i.e stalling, not starting, fuel gauge not registering).  In addition, I have brought the car to several dealers who were unwilling to buy the car for $18,300 (the payoff amount on the lease) claiming that as a result of the accident, specifically the frame damage, the value of the car was diminished.  My insurance company claims that if repaired correctly, the vehicle's value is not affected, but this does not seem to be the case.  I am particularly concerned about the car's safety and want to get rid of the car, but have been unable to do so.  Any advice that you may have on how I should proceed would be appreciated.

Answer
Hi Bryan,

Unfortunately you will need to really put some pressure on your insurance agent. Give the agent a list of all the problems that you have noticed with the vehicle since you have gotten it back. Tell the agent what the dealers have told you about the diminished value since the accident. Basically, let him know that you are not happy with this vehicle and it is his/her job to make sure that you are. That's why you pay insurance. Let him/her know the car must be repaired back to pre-accident condition before you are going to sign off on it. You may be forced into a legal battle if they are going to be stubborn about it. I hope this has been of some help and good luck with it.

Gary