It took the insurance company seven months to finally declare my vehicle a total loss, despite the dealership recommending this from the very beginning. Am I entitled to any compensation beyond the $1,500 limit on my rental car policy?
My vehicle was struck by lightning on August 1, 2024, and it was nearly new with less than 10,000 miles on it. Unfortunately, all the electrical systems were completely damaged. When I had it towed to the dealership, the service manager, who had experience with similar cases, indicated that fixing the vehicle would be highly unlikely due to the complexity of modern vehicles. He recommended to my insurance company that they total the car. However, the insurance company refused and insisted that repairs be made based on their diagnostics.
In summary, after replacing nearly all the electrical components, new parts began failing as well. After seven months of attempted repairs, the insurance company finally declared the vehicle a total loss. During this time, I continued to pay for insurance on the truck, the lease payments, and a rental car, which is only covered for three weeks under my policy. In total, I’m out $15,000 to $20,000, plus the upfront fees I incurred when I leased the vehicle. It feels like the insurance company took a gamble to save money, and it ended up costing me significantly.
I submitted receipts as requested by my claims adjuster, but they were promptly denied by management, citing that they weren’t covered by my policy. Do I have any recourse to pursue this money?
I’m sorry to hear about your situation—it sounds incredibly frustrating. Based on the details you’ve provided, it seems you may have grounds to pursue further compensation. Here are a few steps and considerations you might want to explore:
Review Your Policy: Carefully examine your insurance policy to understand the coverage details, especially regarding total loss claims, rental reimbursement, and any potential exclusions.
Document Everything: Keep detailed records of all correspondence with your insurance company, including phone calls, emails, and any submitted receipts. This documentation could be crucial if you decide to escalate the matter.
Total Loss Process: Since you had a dealership’s recommendation for a total loss from the start and the insurance company delayed this process, there might be grounds for arguing that their actions were unreasonable or negligent, leading to additional financial burdens.
Legal Consultation: Consider consulting with an attorney who specializes in insurance claims or consumer rights. They can provide personalized advice on whether you have a case for bad faith insurance practices, which can include unreasonable delays or failure to honor your policy.
State Insurance Department: You may also want to file a complaint with your state’s insurance department if you believe the insurance company acted improperly. They may be able to investigate the practices of the insurer.
Negotiate with the Insurer: Sometimes, simply bringing your concerns to the management level within the insurance company can prompt a reconsideration of the situation. If you haven’t done this yet, you might want to request a formal review or escalation.
Consider Small Claims Court: Depending on the amount of extra expenses you incurred, taking your case to small claims court could be an option if the sum is within your state’s limits.
While the situation is undoubtedly complex, with professional guidance, you may be able to seek compensation for the losses incurred due to the insurer’s handling of your claim.