New Fit - Totaled
 

Hi. I would appreciate any help in minimizing getting screwed by an inattentive driver.

Background:

• Purchased 2009 Fit Sport M/T on 12/9/2009. Paid $17.6k out the door, 2.9% x 60mo through Honda deal.
• Inattentive driver turns left. Across a 2 lane road, into a car traveling @ ~60mph, who hits me.
• I'm fine. The perpetrators are fine. The guy they cut off was taken to the hospital, hopefully okay.
• Car is not fine. Totaled.
• Valuated at $16.5k (Assuming they get deductible back).
• Plan to purchase another Fit
• $1076 loss from valuation alone
• Paying 8% tax on a new car twice in three months
• No finance specials right now. Best I can see is 4.02% from Chase Bank. If I am not offered the same rate, ~$450 more down the drain

So. I have what could amount to a $1500 loss, hours lost post-accident and dealing with insurance, going through the entire new car process again, and the inconvenience of using one car for my wife and I for a short while, and M/T models are less common this year. Oh, and the perpetrators? We both have Geico. Will that impact whether they "fight" for my deductible?

Do I have any recourse? I am happy to be in good health, and can live with small bumps like this, but would be happy if anything could be done.

Cheers,

Good to hear that you're OK! The Fit comes through again! It is precisely this scenario that I thought of when I purchased new car replacement insurance for $7 every 6 months. I was surprised how cheap it was when my insurance company offered it to me. I'm sorry I can't offer any insight to your present situation.

spend a few hundred and talk to a lawyer. Might save you $1500 or more.

That sucks. Saw something like this on my way into work a couple of days ago...driver in the fast lane suddenly decides to change over one lane to the right ( Honda CR-V)... didn't signal or look into their mirror, almost took out the Lexus on the right who then almost took out the Ford 350 on their right... no one (this time ) damaged, but came close.....

I'm bad at describing accidents :-P.

Traffic light on 2 lane 55mph road.
Driver 1 eastbound left lane, ~60mph.
I turn right on red into eastbound right lane.
Driver 2 going westbound makes a left turn towards the road I came from... right into Driver 1.

Two things get me mad on the road. Inattention, and lack of courtesy. That a driver with one of these qualities has cost me so much time and money is absolutely infuriating... but I don't know if I would speak to a lawyer, even if it were in my personal best interests.

The alternative is to trust the insurance company. I'd rather have a hired gun on my side. I'm not talking about an ambulance chaser. Legitimate lawyers will give you a free 30 minute consult (a first consult rarely lasts less than an hour so expect to pony-up $150 or so) and you decide where to go from there. You really should have no out of pocket or inconvenience. Someone hit you, not the other way around.

I thought you meant against the inattentive driver.

I don't think it's fair, but to me it just feels like a risk of owning a new car. You drive it off the lot and it loses value. I don't even know if gap insurance would help, as my down payment put the loan amount below Geico's offer. What angle do you think would be available to argue? I suppose it might be worth a consult if it might pan out...

So long as there is not a question about who caused the accident your damages will be paid by the other guys policy. The fact you're insured with the same company means nothing. Other than the damage to your car the only other thing you're entitled to is a rental car while your claim is being settled - that is if your only claim is for Property Damage. If you were injured in the accident and had yourself checked over and had a few treatments you would also be entitled to your medical expenses, pain and suffering/inconvenience and any lost wages. These would be paid under the other guys Bodily Injury coverage.

Also for your benefit and the benefit of Steve 244 your insurance company operates in your state under the guidance and control of your states Insurance Commissioner. You can believe me when I tell you no insurance company wants to generate an Insurance Commissioner complaint. Any time you feel your insurance company is treating you unfairly all you have to do is contact your states Insurance Commissioner and state your problem. I'm sure you can find them in your phone book under State Government. You don't have to hire a lawyer. The services of the Insurance Commissioner are free as they are paid by our taxes. They will contact your insurance company to find out what their story is and will either straighten them out, if they're wrong, or perhaps straighten you out by explaining where you might be wrong.

It's unfortunate but all they owe you is the ACV (Actual Cash Value) of your car. As unfair as it might seem, how much did your car depreciate when it left the dealership? One thing to be aware is that if you asked 3 insurance adjusters for their evaluation of a total loss you would get 3 different answers. No one answer is right and no one answer is necessarily wrong. If you have done some searching and feel their offer is on the low side you can usually negotiate the settlement value if you're being reasonable and again "have done your homework by shopping around and keeping notes". In most cases where the car is only a matter of weeks or several months old a lot of insurance companies will be a little benevolent and settle for the price of a new car less so-many cents per mile your car has on it. Do some math and see if you can't use that for an arguement to get a higher settlement.

I worked for 25 years in the automobile insurance claims business and retired 20 years ago as a claims manager.

whaap: this is what I thought, and the amount I was offered seems fair based on the KBB / Edmunds and other similar resources. I know it could be far worse. As I said, it's simply a risk of buying a new car, but absolutely infuriating that I will likely be paying $1.5k for the ineptitude of another driver.

My claim is under Collision if I'm not mistaken. You mention entitlement to rental? I was under the impression that one would need additional Rental coverage (I do not have this) for this benefit. I do have another car to drive, although it's going to tack on 30-45 minutes (one-way) to my commute.

Thanks for the response :)

Is the other vehicle a bicycle? :D

But seriously, glad to see you're ok. I'm no expert, but I believe that their insurance is only going to give you what they perceive as the cash value of your car, no matter what you do. You may be able to argue your way to a higher settlement, but as was stated before, do your homework...they've done theirs.


Again, I'm no expert, but you may be able to hold the other driver liable for the $$ you lost. If you're a litigious person, I'd look into getting him for your losses, court fees, pain & suffering, mental anguish, whatever you can get. These jerkwads cruise around comfortably, knowing that their insurance will cover them and the crash is only going to cost him $500 (or whatever his deductible), allthewhile making everyone else miserable.

And if you get his traffic court date, I'd be sure to show up so that they don't let him off the hook due to there being no witnesses to testify.

If GEICO considers you at fault they will pay your damages under your collision coverage and you will pay your deductible. In that case you would need rental coverage to get a temporary substitute. If they are handling this as the other guy being at fault they will pay you under his Property Damage liability coverage. Under that coverage you would also be entitled to a rental.

Likewise if you were injured and required any medical treatment they would pay that under his Bodily Injury coverage and that also covers pain, suffering and lost wages.

Also, keep in mind KBB is a good "guide" but does not always reflect values accurately. Talk to a few dealer reps to get an idea how accurate KBB numbers are.

Good luck.

My wife and daughter were rear-ended a couple of years ago. Damage to the bumper cover was all. When she mentioned they felt "a bit stiff" (completely honestly, they weren't trying to rip anyone off) the other guy's insurance immediately started throwing money at them.

Everything is negotiable.

All three of you had the same insurance company? It's going to get complex because of driver 1 being hit by driver 2 and deflecting into you.

Your damages plus expenses should be covered. The car was 2 months old; it's not unreasonable to expect full value.

If the insurance companies catches a whiff of lawyer, they are not going to screw you for a couple thousand dollars. It's also expected for them to pay your legal expenses.

Spend a couple hundred talking to a lawyer. Free advice is worth what you paid for it.

Be careful of that one. Many times when threatened with a lawyer I would encourage the person to please get one. I did much better talking with someone who knew what was going on instead of talking to someone who thought they knew what was going on.

Wrong. They do not owe for legal expenses.

payment of legal expenses is customary in a lawsuit. If threatened with a lawsuit an insurance company will typically settle out of court. Settlements would tend to include legal fees.

They don't "owe" for anything except what you are willing to settle for. Everything is negotiable.

The insurance companies have thousands of hours of experience negotiating settlements. The general public, not so much.

Unless you're willing to settle for their offer, consult a professional.

Perhaps you have seen legal expenses paid but in 25 years of my handling automobile claims not one time did the cost of the attorney enter into the equation. Lost wages, pain and suffering depending on the severity of the injury - yes. Legal fees, not once.

I guess you were only involved in contingency cases where the lawyer took his cut (30%) from the settlement.

In a simple case I wouldn't expect a big settlement. I would expect enough to cover all your expenses including legal fees.

Some people cannot afford a retainer making contingency their only option. I'd try to avoid this as it seems the lawyer is working for himself and not you.

At least spend a couple hundred for a consult.

I never considered this, but what good is the ACV if it does not get me back to where I was? Searching within 100 miles across 6 popular databases, there is *edit:* not one.

In that case ACV is higher than retail. Everything is negotiable.

This is what I'm talking about. This will support your claim that KBB is lower than the ACV and the insurance company owes you more.