It took the insurance company seven months to deem my vehicle a total loss, despite the dealership recommending this course of action from day one. Do I have any options for compensation beyond the $1,500 rental car policy limit?
On August 1, 2024, my nearly new vehicle, which had less than 10,000 miles, was struck by lightning. The event completely fried all its electrical systems. After having it towed to the dealership, the service manager, citing past experience, mentioned that they likely wouldn’t be able to repair the vehicle due to the complexity of modern car electrical systems. He advised my insurance company to total the vehicle.
However, the insurance company pushed back and ordered the repairs based on what the diagnostic tool indicated was faulty. To summarize, after replacing nearly all the electrical components in the truck, new parts were showing faults almost immediately. After seven months of ongoing repairs, the insurance finally agreed to declare the vehicle a total loss.
During this entire ordeal, I was still responsible for paying the insurance on the truck, the lease payments, and covering rental car expenses, as my policy only covers the first $1,500—which barely lasts three weeks nowadays. Altogether, I’ve lost between $15,000 and $20,000, plus the upfront costs I paid when I leased the vehicle. It feels like the insurance company took a gamble to save money, and it ended up costing me significantly more. I’ve submitted all requested receipts to my claims adjuster, but they were denied by management, stating they are not covered under my policy. Do I have any options to pursue reimbursement for this money?
I’m really sorry to hear about your situation; it sounds incredibly frustrating. While I’m not a legal expert, I can share some general information that might be helpful.
Review Your Policy: Start by thoroughly reviewing your insurance policy to understand what is covered. Pay special attention to sections about total loss, rental reimbursement, and any clauses regarding repair procedures.
Document Everything: Keep meticulous records of all communications with your insurance company, dealership, and any expenses you’ve incurred as a result of this situation. This documentation can be crucial if you decide to pursue further action.
Justification of Delays: Since the dealership recommended a total loss early on, document their statements and any expert opinions you can gather about the nature of the damage. This could help support your case that the insurance company’s delay in declaring a total loss was unreasonable and led to additional financial burden.
Possible Grounds for Compensation: Some potential avenues for compensation beyond the rental car policy limit could include:
Breach of Contract: If you believe the insurance company did not act in accordance with the terms outlined in your policy, you may have a case for breach of contract.
Consult a Lawyer: Given the complexities involved, especially with significant financial loss, consulting with a lawyer who specializes in insurance claims may be beneficial. They can provide tailored advice based on your specific situation and the laws in your state.
File a Complaint: If you feel you have been treated unfairly, consider filing a complaint with your state’s insurance commissioner. They can provide assistance and may help facilitate a resolution.
Seek Mediation: Some insurance companies offer mediation services for disputes, which might help you reach a fair settlement without going to court.
It’s essential to act promptly, as there may be time limits for making claims or pursuing action against the insurance company. I hope this can help you find a way to address your situation and hopefully recoup some of your losses.