AboutDoctor Settlement Expertise 27 years of front line plaintiff`s trial lawyer experience in PERSONAL INJURY INSURANCE CLAIMS. Along with other attorneys and insurance adjusters, we have created a website to help injured people settle their own personal injury claims. With the help from feedback from hundreds of satisfied members, www.settlementcentral.com has become THE AUTHORITY for Internet personal injury insurance claim settlements. I am humbled and honored if people can benefit from my experience and current volunteer work in helping injured people. I hope I can explain things in a manner that is useful for the questioner. If not, do not hesitate to e-mail me and I will take a second shot at it! Best Wishes for your physical and financial recovery.
Experience
Life Experience: 27 years of front line plaintiff's trial lawyer experience
Organizations: American Trial Lawyers Association (AAJ)
Washington State Trial Lawyers Association
Awards and Honors:
I am humbled and honored everytime I am selected to help injured people. And when people give feedback that they have benefited from my experience and current volunteer efforts, then that is a double honor and award for me.
Question QUESTION: My bike was hit while parked at work . Police report was file as well as a claim by the person who hit my bike with his insurance(citizens). My question is this .They told me they would only allow me 25.00 a day for rental vehical.That is a far cry from the 150.00 a day for a rental bike. Also am I entitled to diminished value on my bike as it was in the accident and it will have to be disclosed on sale. I live in Michigan if that makes a differance.
ANSWER: Hi Brian,
Well, let's all give thanks that your motorcycle accident occurred when you were not on the bike! This is what we motorcycle owners call a "good accident". Once I decided to purchase a motorcycle, people started teasing me about the fact that everyone was going to have an accident at some time. So on the first day I approached a 90 degree highway corner and felt I was going too fast, and so I laid down the bike and only scratched the left light on the bar and my foot peg, and tore my jeans. Hence, "good accident" was had and I have finished my allotted quota of accidents. Let's hope that the same pertains to you.
As for your issues regarding both rental and diminished value, let's focus upon the difference in responsibility between the two insurance companies. One is first party versus third party claims.
A first party claim is against your own insurer. A third party claim is against the tortfeasor's insurer. Your rights will be less in a first party claim since the insurance policy can curtail the amount of rental allowance and also it can prohibit a diminished value claim.
This is just a matter of contract. The insured probably never even knows about these restrictions when he buys the policy, but there they are, right there in the contract.
By contrast, the tortfeasor gets no such benefit to limit his exposure. You will point out to the tortfeasor's adjuster that his duty is to INDEMNIFY YOU. That means that he has to make you whole, to restore you to your pre-accident condition.
Just before the tortfeasor hit your bike, it did have two aspects of its existing condition:
#1. The bike had a physical appearance and condition.
#2. The bike had a financial condition, described as a fair market value.
The first party adjuster's duty to restore is limited by your contract, BUT NOT SO FOR THE TORTFEASOR.
Hence, you are entitled to restoration of BOTH aspects of the condition of your bike the moment before the accident. The physical aspect you can look after. The value is another topic. The adjuster might try to say that Michigan is not a diminished value state. But that pertains solely to first party obligations.
The legislature never gives a tortfeasor a free ride to diminish the value of an asset. So, if you can prove that the market place will penalize your bike because of your accident, then you are entitled to a diminished value claim versus the tortfeasor of that reduction in value.
As for the rental, yes, your own contract will have a daily limit. But there is no "daily limit" for the tortfeasor, irrespective of what their adjuster claims manual says. The issue is: what is a like kind of transportation. A Lincoln Towncar owner cannot be limited to a compact. Argue this to the third party adjuster to see if you can prevail to get a rental allowance for a two wheel ride. BUT, the issue of a big motorcycle versus a smaller rental bike will not be recognized. Why? Maybe because if a jury were asked, they would not make that kind of award.
This is an issue that you might have to reserve for later resolution. You get the rental allowance irrespective of whether or not you actually rent another vehicle. So if you have a car, go ahead and drive it and exempt the rental allowance issue from the General Release form they will want you to sign upon completion of the repairs. If the diminished value claim is not resolved by then you need to exempt it also.
The way to exempt these two claims is to put the exemption right on their General Release form in ink. Something like this will do: "except claims for vehicle rental allowance and diminished value". Put those words wherever you can write them, make an initial by them, and draw an arrow to connect just after the words in the form that state this is a release of "all claims".
If your adjuster says that they cannot pay a first party diminished value claim, ASK FOR THE AUTHORITY IN WRITING that allows them to ignore such a claim. Remember that their exemption for diminished value pertains only to first party claims. So you will have to figure out if it is better to make a third party claim.
Your own first party policy might prohibit a diminished value claim, but since the duty of the tortfeasor is to indemnify you, there is ALWAYS a duty on the part of the tortfeasor to make you whole. That means to restore the value that your vehicle did have prior to the accident.
Would some purchaser pay the same for your vehicle as an identical one that had not been in an accident? If not, then the amount of the discount is the diminished value.
Since the tortfeasor has the duty to indemnify you, then you can always bring a diminished value claim versus his policy, even if your state does not allow first party diminished value claims.
Here is some additional information from my website that may provide some help.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
QUESTION: Thank you for the information. This is a third party claim. I belive as my insurance claims represeitive suggested I go right with the party at faults insurance instead of mine . He contacted them and they contacted me and told me of the rental price they would allow. She told me under Michigan Law they only had to supply a vehicle at the max rate of 25.00 a day. My bike is a Harley Davidson ElectraGlide Ultra Clasic which is there top of the line touring bike.Wih so upgrades i paid 26,000 and change for this bike and it is a 2008.with about 9500 miles .I am going to the dealer today to see about the time the bike will be down and check on what they feel the diminished value would be if I were to want to trade it in on a new bike. I don't really feel that comfortable with riding this bike after it has been in a crash like it was .So I guess what the question is on the rental. Should I contact the insurance company and argue the point of the rental price or should I contact an attorney and let them do the negotiation.
Answer Hello again, Brian,
Thank you kindly for the feedback you left for me. I appreciate that. But now I am a bit embarrassed because I am not going to be able to live up to your fine marks!
I spent a bit of time trying to find any Michigan law on the point, but without any success. Hence, I am going to suggest FOUR things in your case BEFORE you call an attorney.
#1. Ask the adjuster to kindly send you her authority for that citation. It could be a statute or it could be some administrative code from the Insurance Commissioner that I could not find. If the law is clear, fine. If not, send it to me to look at.
#2. Call your State Insurance Commissioner and ask about this assertion from the adjuster. Try to get some comment from the representative (and get her name) regarding your right to a rental allowance for a similar vehicle. Here is the link to the insurance commissioner: http://www.settlementcentral.com/links.php
#3. You do have some good ideas on a diminished value claim:
A. Here is one good idea that (at least as a bike rider) sticks with me:
"don't really feel that comfortable with riding this bike after it has been in a crash like it was"
This is something the adjuster does NOT understand. There is no safety concern whatsoever in most auto damage restorations. And the adjuster is used to dealing with these.
B. But you will need a lot more documentation that just this:
"what they feel the diminished value would be if I were to want to trade it in on a new bike".
You need to push your idea along the path of evidence and see who else will speak up about the safety concern. And do not forget the fit and finish challenges: anyone who is in the market for a top-end bike will be very particular about fit and finish.
C. Developing evidence:
1) Be sure to speak with a person of authority at a few bike shops. They do NOT have to be HD—any shop owner of any kind of high-end bike can speak to both the safety and fit & finish concerns.
2) Go online and find some bolgs and put out your issues. Two kinds of evidence will result. First will be posters with anonymous names. These are of some relevance, since they show a general concern on the topic. But who is to say that you did not get your friends to post? Hence, beg someone with a good post on your topics to give you his e-mail address. THAT is a real person whose opionion on safety and fit & finisnh can be cited as evidence of the market penalizing a bike such as yours once it is put up for sale.
#4. Do NOT forget your bodily injuries. As a motorcyclist myself, I got to represent a number of victims of car-driver ignorance and inattention. Anytime one takes a spill there is bodily injury.
And in your case, where there was a lot of damage to the bike, one is led to conclude that there was some speed to your spill, and hence, there was some pretty significant trauma your body suffered.
Yes, I do know that Michigan does require a significant injury in order to sue the third party, and let's hope that you do not qualify. BUT, it also does no good whatsoever to "tough it out" when you have pains.
My guess is that at the end of a work day or after some physical activity you do suffer significant pains. Be sure to get treatment for these and let's hope they heal. But if they were to worsen, at least you will have a medical record if you go for treatment now.
Hiring an attorney now? I would wait to see authority for the rental law is produced by the adjuster and your Insurance Commissioner. Of course if you do have significant injuries, and there is a good shot at exceeding the Michigan no-fault threshold, then an attorney will be a help.
OK, Brian, that is about all I can give for help on your claim. Good luck! If I am on vacation by the time you try to get back to me, go to my website and use the "contact us" form and be SURE to mention that we met on allexperts.com so the staff will send me your e-mail. I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
