Navigating insurance after an accident can be confusing. Here’s the situation: my sister purchased a car several years ago at a very high interest rate (that’s a whole different story). After having her car stolen and not repaired properly, it was still functional and safe, but not in the best condition.
Recently, she was involved in an accident when another driver ran a stop sign. My sister was completely blameless, and the other driver accepted full responsibility, along with having insurance coverage.
After working with her insurance company, they declared her car a total loss and offered her $6,000. Unfortunately, her payoff amount with the bank was higher than that. Thankfully, she had gap insurance, which will cover the remaining balance, but she is left with nothing.
Given that the other driver’s insurance is responsible, is it possible for her to seek compensation from them to help replace her vehicle?
I don’t know much about auto insurance, so any advice or insights would be greatly appreciated.
Thanks in advance!
Your sister’s situation is unfortunately not uncommon in car accidents where the vehicle is totaled. Here’s a breakdown of what she can do regarding the at-fault driver’s insurance and her own situation:
Liability of the At-Fault Driver: Since the other driver was at fault and admitted responsibility, her sister theoretically has the right to seek compensation from that driver’s insurance for her damages. This can include not only the value of the car but potentially other related expenses, such as loss of use or rental car costs.
Total Loss Settlement: The $6,000 settlement from her own insurance reflects the car’s market value at the time of the accident, not her personal payoff amount. This is standard practice for total loss claims. If she believes the valuation was too low, she can provide evidence to negotiate for a higher amount. This often involves showing listings of similar vehicles with similar mileage and conditions.
Gap Insurance: It’s good that she had gap insurance to cover the remaining loan balance, but it does leave her without a vehicle. She can pursue the at-fault driver’s liability insurance for replacement costs. Typically, they would determine a fair amount based on the fair market value of the car and any additional losses incurred.
Consulting a Professional: Given the complexity of insurance claims, it might be beneficial for her to consult with a personal injury attorney or an insurance expert. They can provide specific guidance and help negotiate with the at-fault insurance company to seek additional compensation.
Claim Documentation: Encourage her to keep thorough records of all interactions with insurance companies, including estimates, settlement offers, and any additional expenses incurred because of the accident. This information will be helpful if she decides to make a claim against the at-fault party’s insurance.
In summary, yes, it is feasible for her to seek additional compensation from the other driver’s insurance, especially since they were at fault. It’s worth exploring her options and potentially seeking legal advice to navigate the process effectively.