Was in a Car Accident...

[pianoronni37]

My DH and I were in a car accident on Saturday - his birthday, of all days.

No one was hurt, we got rear-ended at a stop light. A small Chevy ran into an SUV which in turn smashed into us.

We all have Geico and the Chevy driver took full responsibility. We took our car to the mechanic and he estimated $3500 worth of damage.

The blue book value is anywhere from $1500-$3000, so the car is a total loss.

We still owe $4500 on the car, and we are making $142 payments each month - which was awesome. The car was in great shape, we kept up with it really well.

So this is on the budget board because we feel like we are out money and I don't know where else to ask this question.

If we have Geico total the car, we'll get a check for $2500. We would still owe $2000 on a car we don't have.

If we buy the car back from Geico, we'll get a check for $2000 to cover $3500 worth of damage.

So it's either be out $2000 and pay on that and try to get a new car, or be out $1500 and pay for the mechanic for a new frame/trunk/taillights/rear window, etc.

Which would you do, and should we get lawyers involved?

We don't really know where to go from here, because we haven't done anything wrong and we were just at a stop light but now we're out a car (my DH and I share this car, too) and we'll definitely be out $$$.

Advise is very much appreciated!!!

 

[ICan'tWait]

Did you call around to different mechanics to see if any of them could use junkyard parts to fix the car for less than $3500?

 

[uromac]

Hi!

I really can't help - but want to offer you my understanding and sympathy as I was in an accident last week too! Hope everything works out !

 

[dawnbu40]

Glad to hear no one was hurt! IMO you should take it to court. We had a similar situation years ago where an accident was someone elses fault and our car was declared totalled and the ins didn't cover all we owed. We did not want to go to court so we took the loss. I still regret it and I think it's been about 17 years! Contact the other driver if you can and see if they will pay and if not go to court. It wasn't your fault so you shouldn't take the loss for their error.

 

[prncess674]

Here is some additional info.

http://www.ampminsure.org/auto/claims-worth.html

 

[tinkarooni]

Glad to hear no one was hurt! IMO you should take it to court. We had a similar situation years ago where an accident was someone elses fault and our car was declared totalled and the ins didn't cover all we owed. We did not want to go to court so we took the loss. I still regret it and I think it's been about 17 years! Contact the other driver if you can and see if they will pay and if not go to court. It wasn't your fault so you shouldn't take the loss for their error.

What a shame that you've been regretting this for 17 years. I am a claims adjuster for 15+ yrs. This answer is for OP as well. The insurance company only owes you ACV or what the car is actually worth at the time of the loss, not the amount that is financed. Contacting the other driver will not help and either will taking them or the insurance company to court, they only owe ACV (Actual Cash Value) no matter what and you'll spend more in court costs. Yes, I agree it stinks.

To OP: Did you have any GAP insurance on the vehicle? Gap will cover the difference between the amount the at fault party pays and the outstanding lien. If not than there really is no way around it. I personally though would not buy back the car. The ACV is all you will get and when the repairs start it is more than likely that there will be supplemental damages (things they won't see until tear down) and it could end up costing you even more.

So sorry that this happened to you.

 

[amylevan]

Keep in mind that if you repair the car, the value of it will plummet tremendously for resale or trade-in in the future. You are better off to take the cash and buy a "new" used car.

The person who hit you isn't liable for the amount you owe, just what the car is worth, so taking them to court isn't really going to be beneficial - and it will cost you court & lawyer fees.

 

[luvsgrumpy]

Geesh, I have nothing to add other than why do we even have insurance in cases like this? (No, I will not be cancelling our policy or anything, just a thought)

Good luck on your decision, hope it all works out. Any chance that if you take the $2500 from Geico that you will still retain the car and can sell the parts or anything to a junk yard for a little extra?

 

[Grendalynn]

First of all - thankfully you are alright! I was in a fender bender in December, what a disaster! The guy that hit me had a history of bad driving, no insurance and admitted to it being his fault the minute he got out of his POS car. I had about $4500 worth of damage, the vaule of my car was too high to total.... SoI feel your pain...

I just wanted to point out that if you decide to fix your car, you may run into more problems and complications down the line that could be pricey! I am not sure that I can give you any advice, but just soemthing to consider... Good luck!

 

[angelat]

No matter what, consult an attorney. Most attorneys will give you a consultation for free. And many accident lawyers will do the work on a contingency basis. If you get paid, they get paid, if not, they get nothing. Typically they won't take the case if they don't think they can win. Different states have different rules. No one knows them all unless that is their job. I would never just settle on taking the $ for a totaled car like that. I would DEFINITELY consult with a lawyer.

Good luck!!

 

[a1tinkfans]

With all same policy carriers, deductibles are generally waived.

The other carriers coverage (which is Geico also, so this is EASY for them) is in play here, you do NOT have to go first party, thru your own coverage. if THEY total the car under HIS policy, you need to WRITE to them that you still owe on the vehicle and you are seeking your full lost value. You can go to small claims court to try and recoup your out of pocket expenses.
I am glad to hear you are okay...but stay atop carrier, it is VERy easy for your claim to fall thru crack and you need for them to explain to you HOW they are going to handle this to cover your loss. Technically they are under state regulations so there should be no real delay, especially since they insure all. States laws vary. Call, and Best of Luck, What a nightmare!!!

 

[pianoronni37]

Thank you for your replies, everyone!!

My husband was insistent last night on getting a lawyer - I kept trying to tell him that the insurance company is not going to pay more to fix the car than what the car is worth, nor should the insurance company worry about our car note when the car itself is worth less... but he gets stubborn.

I'm all for NOT going through the legal mess. The guy that hit us just lost his job, apologized up and down, said that he was in a mess himself, and to sue him doesn't really seem to be the answer - no point in squeezing blood from a stone.

We're just kind of upset because now we're out either $$$ or a viable car, and the only thing we did was be in the wrong place at the wrong time.

 

[speedyf]

I was in the same situation years back...but, I actually hit a cow that was loose on a dark road. My car was totaled and I had a $900 difference between what I owed and what the car was worth.

I spoke with lawyers, and most of them said that there was nothing I could do...unless I was hurt. I kept feeling like they wanted me to say I was hurt so they could take the case. "Are you sure you're not hurt?"..."Do you want me to line up my doctor to take a look at you?"....geez.

It really does suck. I wasn't as worried about the $900 gap. I would have still been mad even if the insurance would have paid it off in full. The thing that made me mad was that I was in college and the car was almost paid. I was paying $140 per month on the note....so, I had to then replace the car and the note ended up being $240 per month...which was tough to spring as a college student / part-time worker.

I would still consult a lawyer, if I were you....since your state's rules may be different than my state's rules....but, I have a feeling you will get the same answer.

Speed

 

[ryanshana]

Are you sure you don't have gap insurance? either thru the lending company for the car or your car insurance. That way they will pay off the remaining 2k that is still owed on the car.

I was in an accident and the car was worth less than the car....i didn't have gap insurance....but my next car I was SURE to get gap insurance...if you don't have it I would suggest getting it next time it really does help.....

Glad you weren't hurt!

 

[mjhd]

So glad to hear you're all okay! Do you know anyone that can fix the car up to an acceptable condition for you? DH has done this MANY times (he loves working on cars but is not a mechanic) for people and is able to find scrapyard parts and only charge a small amount for labor. If you took the money for the insurance company and had the car fixed up by a trusted third party, you would probably still have some $$$ left to pay on your principal!

 

[Leajess99]

First of all - thankfully you are alright! I was in a fender bender in December, what a disaster! The guy that hit me had a history of bad driving, no insurance and admitted to it being his fault the minute he got out of his POS car. I had about $4500 worth of damage, the vaule of my car was too high to total.... SoI feel your pain...

I was in this situation 2 years ago but my youngest DD and I were hurt and I literally had to chase the driver down to have him caught and arrested originally than I had to find him when he jumped bail. He got 14 days in jail for a DUI with injuries, hit and run no insurance, no registration, stolen tags, and no driver's license. There needs to be so much more done to these people.

 

[Leajess99]

OP I am so sorry that you are having to deal with this but I am so glad you were not hurt.

 

[suevee]

My daughter's car was dinged. The other car was at fault. After the repairs, the insurance agent called my daughter to settle the claim. She was offered $1000 to settle the claim. They did this so she would not claim whip lash or any other injury later. You have one year to claim and physical damage. Whip lash may not show up for weeks. If you have any soreness or aches this may be the cause of it. Visit your doctor for a check up to make sure you have will have no problems. People do not realize how insidious this can be. Also you do not have to be hit very hard for this to occur. It can be from a sudden jerk.....

 

[robsmom]

Unfortunately, I have to agree with the posters who say not to get a lawyer. It is not the insurance company or other drivers responsibility to cover you car note. Think of it this way. You will get the book value of $2500. You can then go out and in theory buy the exact same make/model/age car that you had for $2500. If the other driver or insurance had to cover your loan amount than you would be getting a better car than what you had.

I know it is difficult. Personally, I would not fix the car as it does not seem you would get the value back. Either way you are going to be out of pocket. I would just pay off the loan and go out and buy a used car of some sort.

 

[ICan'tWait]

One thought on the blue book value. You can also research to see what the value is in your area and print comps for that - sometimes they're higher. We had a vehicle stolen once and were able to argue a higher value because the vehicle had a clean title. We had bought it used and it was really hard to find a Honda in our area that wasn't a resale from an auto auction or hadn't had the miles rolled back. It got to the point that before even going to look at a car I asked for the VIN# to look it up first. Of course this was 10 years ago before a VIN search was common so maybe people aren't as dishonest now..... Anyway, maybe a clean title can help towards getting a little extra money. Alot also may depend on what insurance company you're dealing with.