Hello,
I don't know what to do. I would be enormously grateful for any insight or advice!
My vehicle is a 2007 Honda Accord EX-L with 118k miles on it. It was in an accident - it had rained and a Tacoma entering the freeway hydroplaned across all the lanes, slamming into a Mazda first, then broadsiding me on one side (I spun 180 degrees), and slamming into me a 2nd time on the other side. I was (surprisingly) unharmed, but the damage was severe - I have three doors that won't open, a sunken hood, and so on.
The woman who hit me was obviously found to be at fault in the police report, there were witnesses, etc. I did not have collision coverage (long story) and my uninsured coverage is limited to bodily injury, so my insurance told me to file a claim against her insurance directly.
Per KBB, my vehicle was worth about $4,800, pre-accident. I'm in California and she only had the state minimum liability of $5,000 with Alliance/Kemper (a cheapo company that doesn't have a great rep). I got an estimate of around $9k to fix the damage, so I expected a total loss.
After a month, the adjuster got in touch:
"Your vehicle is a total loss. We are unable to settle at this time because we are waiting to receive the damage estimates [for the Mazda] . We have a policy limits issue which means there is not enough available to handle all damages at 100%. Once we have the estimate we will submit to our Limits Department to determine how much we are able to offer everyone. Everyone needs to sign and return the releases before we can issue payment."
I feel like I'm going to get screwed unless I have a strategy. I went to cashforcars.com, but since my vehicle is now severely damaged and will be considered "salvaged", was offered a paltry $560. I did a lot of research, but still have major questions:
Is there some rule that the Mazda gets a higher share of the available $5k because it got hit first? If I get a crap offer (say, $700 or some other BS), couldn't I counter-argue that if both our damages exceed $5k, I'm entitled to half the pot? Is it reasonable to argue for a 50-50 split? Is there a way to pressure my adjuster before they come up with an offer so she knows I mean business?
I've read horror stories about lowball offers for total losses and how I should counter-offer to get near the real value. But how do I even negotiate considering the $5k cap for both cars? If I provide comps for similar vehicles in my area, they can say, "Comps are immaterial, we warned you there wasn't enough and this is what the limit allows" (even if they're lying).
I have the info for the owner of the Mazda. Could I reach out and ask how much he's offered, and then use that against Kemper? "You guys offered him a repair of $3k, but are only offering me $700. So don't tell me you've reached the limit". Alternatively, can I ask for transparency in what is being offered to all parties?
3. How many counter-offers are normal; at what point can I honestly believe it's their final offer? They're going to claim their hands are tied by the limit, whether that's true or not. How much can I push them?
4. If I do sue them, would I only sue the at-fault driver, or the driver AND her insurance company? I would try to do it in small claims court, since I don't want to spend a bunch on a lawyer for such a relatively small (yet for me, necessary) amount.
If I can include the insurance company, under what grounds might that be? Bad faith for refusal to settle for a fair amount? Might they be willing to offer a little over her limit to avoid a suit?
I'm worried because even if I won a judgment (I have all the proof on my side), the at-fault driver is a Guatemalan lady who doesn't speak English and was driving without a license. Even assuming she has money or assets, I hear that it's virtually impossible to collect on a judgment, have wages garnished, etc. So suing could be a crazy roll of the dice, even with all the proof on my side.
5. Can I negotiate privately with the at-fault driver? I speak fluent Spanish, so once the insurance makes their offer, could I approach her in a civilized way and say,
"Your insurance is offering X, which is insufficient per KBB value Y. That leaves me with no choice but to sue you - I have everything I need to win, ask for your license to be taken away, get assets, garnish wages, etc. If you force me to sue you, I have to decline the insurance payment (it comes with a waiver), so you're on the hook for the full amount. However, I can accept the insurance payment, provided you make things easier for me by giving me something extra on top of that; I'll sign the waiver and all your troubles go away."
I don't expect her to fork out thousands, but *something* to mitigate my losses..
What would you guys do? I'm very worried. I've been shopping for a used car, but it's hard to budget without knowing how much I can expect for my vehicle.
Sorry for the long story and thanks for reading. Thanks so very much for your help!
I don't know what to do. I would be enormously grateful for any insight or advice!
My vehicle is a 2007 Honda Accord EX-L with 118k miles on it. It was in an accident - it had rained and a Tacoma entering the freeway hydroplaned across all the lanes, slamming into a Mazda first, then broadsiding me on one side (I spun 180 degrees), and slamming into me a 2nd time on the other side. I was (surprisingly) unharmed, but the damage was severe - I have three doors that won't open, a sunken hood, and so on.
The woman who hit me was obviously found to be at fault in the police report, there were witnesses, etc. I did not have collision coverage (long story) and my uninsured coverage is limited to bodily injury, so my insurance told me to file a claim against her insurance directly.
Per KBB, my vehicle was worth about $4,800, pre-accident. I'm in California and she only had the state minimum liability of $5,000 with Alliance/Kemper (a cheapo company that doesn't have a great rep). I got an estimate of around $9k to fix the damage, so I expected a total loss.
After a month, the adjuster got in touch:
"Your vehicle is a total loss. We are unable to settle at this time because we are waiting to receive the damage estimates [for the Mazda] . We have a policy limits issue which means there is not enough available to handle all damages at 100%. Once we have the estimate we will submit to our Limits Department to determine how much we are able to offer everyone. Everyone needs to sign and return the releases before we can issue payment."
I feel like I'm going to get screwed unless I have a strategy. I went to cashforcars.com, but since my vehicle is now severely damaged and will be considered "salvaged", was offered a paltry $560. I did a lot of research, but still have major questions:
Is there some rule that the Mazda gets a higher share of the available $5k because it got hit first? If I get a crap offer (say, $700 or some other BS), couldn't I counter-argue that if both our damages exceed $5k, I'm entitled to half the pot? Is it reasonable to argue for a 50-50 split? Is there a way to pressure my adjuster before they come up with an offer so she knows I mean business?
I've read horror stories about lowball offers for total losses and how I should counter-offer to get near the real value. But how do I even negotiate considering the $5k cap for both cars? If I provide comps for similar vehicles in my area, they can say, "Comps are immaterial, we warned you there wasn't enough and this is what the limit allows" (even if they're lying).
I have the info for the owner of the Mazda. Could I reach out and ask how much he's offered, and then use that against Kemper? "You guys offered him a repair of $3k, but are only offering me $700. So don't tell me you've reached the limit". Alternatively, can I ask for transparency in what is being offered to all parties?
3. How many counter-offers are normal; at what point can I honestly believe it's their final offer? They're going to claim their hands are tied by the limit, whether that's true or not. How much can I push them?
4. If I do sue them, would I only sue the at-fault driver, or the driver AND her insurance company? I would try to do it in small claims court, since I don't want to spend a bunch on a lawyer for such a relatively small (yet for me, necessary) amount.
If I can include the insurance company, under what grounds might that be? Bad faith for refusal to settle for a fair amount? Might they be willing to offer a little over her limit to avoid a suit?
I'm worried because even if I won a judgment (I have all the proof on my side), the at-fault driver is a Guatemalan lady who doesn't speak English and was driving without a license. Even assuming she has money or assets, I hear that it's virtually impossible to collect on a judgment, have wages garnished, etc. So suing could be a crazy roll of the dice, even with all the proof on my side.
5. Can I negotiate privately with the at-fault driver? I speak fluent Spanish, so once the insurance makes their offer, could I approach her in a civilized way and say,
"Your insurance is offering X, which is insufficient per KBB value Y. That leaves me with no choice but to sue you - I have everything I need to win, ask for your license to be taken away, get assets, garnish wages, etc. If you force me to sue you, I have to decline the insurance payment (it comes with a waiver), so you're on the hook for the full amount. However, I can accept the insurance payment, provided you make things easier for me by giving me something extra on top of that; I'll sign the waiver and all your troubles go away."
I don't expect her to fork out thousands, but *something* to mitigate my losses..
What would you guys do? I'm very worried. I've been shopping for a used car, but it's hard to budget without knowing how much I can expect for my vehicle.
Sorry for the long story and thanks for reading. Thanks so very much for your help!
