Questions About Auto Insurance and Accidents

euphonium

Get an estimate for repairing both hail storm damages and subtract from that the estimate for repairing the first hail storm. The balance then represents the 2nd hail damage.

mickeyasr

Thanks! That was my first thought, but I figured it would be more complicated.

chefai

Hi folks, hope you can help me out. Here's the scenario: I'm going to be out of the country for a while, and my brother wants to use my car ('99 RAV4, hand-me-down from our dad, title in my name) while I'm gone. Thing is, he's a less than stellar driver, and has totalled another family car pretty recently. Apart from my concern that by the time I get back stateside my car may no longer be in one piece, I have the following questions:

--I'm certainly not paying to insure him, but can he get his own insurance on my car without me having to legally give it to him?
--If he did get into an accident with it (let's assume he's uninjured) with the title still in my name, would this affect my own insurance premiums in the future?

Thanks for any advice you can give me!

euphonium

--I'm certainly not paying to insure him, but can he get his own insurance on my car without me having to legally give it to him?
He may qualify for Liability & PIP for covering himself, but as he does not have an "insurable interest" in your vehicle, he can not cover it for comp & collision.

--If he did get into an accident with it (let's assume he's uninjured) with the title still in my name, would this affect my own insurance premiums in the future?
It would impact your future with your insurance company as well as the increased premiums for the hazard that he is. After the crash the company would be aware of your loaning your car to him and not renew your policy.

When you loan your car - you are also loaning your insurance as Liability follows the car. My advice is to deny your brother this privilege.

kyfdx

Were you planning on dropping your auto insurance completely, while out of the country?

Because gaps in coverage can affect your future insurability and rating class...

chefai

...great...

Would it be better if I officially signed it over to him, and then possibly added myself to my parents' insurance policy to avoid a gap in my own insurance history?

chefai

So I just requested a quote to add him to my policy. Aside from the part where it'll still screw up my own premiums if he gets into an accident, does that avoid the other problems?

Thanks for your help, everyone. Trying to make the best of a bad situation here...I'm really not excited about the idea of handing my keys over to him.

euphonium

By adding him to your policy, even tho he is not a resident of your household, your neck is still in jeparday as the OWNER of the car involved in the crash. You don't want to hand over the keys, & you shouldn't, so don't.

houdini1

Unless that particular car has some sort of special interest for you, I would just sell it and buy something else when you return. Offer it to your brother first.

igozoomzoom

Your brother needs to purchase a policy that is commonly referred to as a "Named Non-Owner Auto Policy". Since he doesn't own a vehicle, this type of policy will provide liability protection for any vehicle that he drives.

Even though he drives a vehicle that belongs to you, a friend, his employer or even a rental company, his policy will cover liability when he is behind the wheel (regardless of the name on the title)! Typically, comp/collision coverage aren't included on a Non-Owner policy, just liability. Physical damage would be covered by the vehicle owner's policy (if they have such coverage).

I would reiterate what an earlier posting said about not cancelling insurance while you're out of the country. If you still own the vehicle, you must maintain insurance coverage on it. In some states, they will revoke the car's registration and suspend your driver's license if you don't have insurance on a vehicle titled in your name!

How long will you be gone? Will you really want this vehicle back after your brother has abused it while you're gone? Will it even survive until you return?

I would be very tempted to sign the title over to him, create a Bill of Sale document to support the date you transfer ownership (in case he doesn't re-title it in his name within the required time period) and then I'd drop the insurance! At that point, you're free of any liability and all responsibility to insure it is on him!!!

euphonium

Doesn't the "Named Non-Owner Policy" exclude vehicles provided for the insured's regular use? :confuse:

imidazol97

How do I get a better glass replacement for my windshield that got cracked yesterday by a rock?

If I recall years ago, the insurance company called and took care of replacing the windshield with someone who came to the house. But I want a good quality replacement for my windshield.

How does this work?

robr2

It all depends on what your insurance is willing to offer.

Windshields break. It happens. File your claim and take it where you want if your insurer allows it.

fushigi

Agreed. I've had windshields hit by rocks replaced a few times in recent years. We carry glass coverage (something like $7/six months/car) so replacement windshields have a separate $100 deductible. The last time a break occured I called the claim phone number, they opened the claim & converenced in the local repair joint. With us all on the phone together we set it up for them to come replace the glass at my home. Very easy.

In prior events, I called my agent and they recommended a shop (same shop as above, actually). The advantage there is that there's no messing with getting quotes and there's no claim forms to fill out.

Just make sure the break meets the replacement requirement; for cracks shorter than about 5-6 inches that aren't directly blocking the driver's view my insurer doesn't replace. Policy contrainsts like that will vary.

robr2

...for cracks shorter than about 5-6 inches that aren't directly blocking the driver's view my insurer doesn't replace.

Really?? Here in MA, that wouldn't pass the safety inspection. As long as the crack is bigger than a quarter, my insurer replaces it. Oh and I pay a couple of bucks extra per year for $0 dedutible on glass.

kyfdx

In KY, windshield glass is $0 deductible...

fushigi

Small cracks & chips are repaired (filled/sealed), not replaced unless they block the driver's visibility.

We don't have safety inspections. Some areas have emissions inspections but that's all.

euphonium

Is Hagerty covering this risk? http://youtu.be/CHwwwJ83oWo

robr2

I'm amazed that she's 101. Based on her agility and voice, I would've guessed maybe 80. It's great to see those 2 old girls getting out regularly.

Mr_Shiftright

you can almost see the Packard vultures in the sky above... :P

Hey, as long as she stays off the freeway and she's driving in those empty streets, I think it's fine. She can turn her head around and she's not wobbling, so I'd say she's good for a few more years of driving. Besides, if she hits anything with that tank, she wouldn't even know it unless someone e-mailed her.

rustum

Hi,
Recently I switched my insurance from Safeco to Geico. My Safeco insurance ended on 04/11/2012. I took Geico insurance to start from 04/12/2012. Requested my agent to cancel Safeco insurance starting from 04/12/2012 and clearly indicated that, I do not want to renew my insurance. Safeco cancelled my insurance on 04/12/2012 12:01 AM and sent me a $13 bill.

Not sure why did they cancel on 12:01AM instead of 12AM and sent me a $13 bill for 1 second? Is there something i am missing here?

Mr_Shiftright

Sounds like some mindless computer screw-up. I'd just call them up and have them wipe it off. That's some expensive insurance you had there...$13 a second...LOL!

stever

Horace Mann tried to pull something like that with me long ago when I switched companies. I contacted the state insurance commissioner and they changed their tune fast.

euphonium

Minimum Premium of $3 for one day of coverage plus a policy fee of $10 =$13.

rustum

Thanks to Mr_Shiftright, Steve and euphonium for helpful replies.
I will check with Agent one more time. My agent wants me to send a copy of new insurance starting with 04/11/2012 instead of 04/12/2012 . Not sure why?
Looks like Geico insurance starts from 04/12/2012 12:01AM instead of 12:00AM. I will try contacting Safeco and Geico one more time before contacting insurance inspector.

euphonium

No coverage gap when the replacement policy begins same time as the original policy's expiration date. If there is a loan involved, the loss payee clause may state that their interest shall continue until a replacement policy or Binder arrives.

lilyowen

My understanding is that 12:01AM is the start/end time for a policy ... avoids confusion regarding whether 12:00AM is prior or next day. If your Safeco ins. renewed on 4/11 (which it did if you requested insurance through 4/12 and expiration was 4/11) and Geico started on 4/12 then you paid 13.00 for one day of insurance, not one minute.

You should have requested, and your agent should have advised you, to start the Geico policy immediately upon expiration of your Safeco policy and advised Safeco that you wished to non-renew. This all would have happened on 4/11 at 12:01AM and you would not have incurred the 13.00 charges. I'm surprised that your agent would let that happen ... then again, not really.

robr2

And in the grand scheme of things - it's only $13!!

Skip coffee for 4 days and it'll even up.

stever

Why should someone pay for double coverage though? I'd much rather have the coffee myself. Italian roast please. :shades:

robr2

I see too many people step over dollars to get to dimes.

Life is too short to worry about $13.

euphonium

According to Post 5049, there was no double coverage involved. Drink stronger Italian roast please.

stever

The way I read it the insured told his agent to swap companies. If the agent did their job right, then there should be no overlap in coverage.

euphonium

CSR's are like PharmTechs. You gotta keep an eye on them.

rustum

I tried calling Safeco on 04/11 evening CS. They forwarded my call to agent. I clearly indicated agent that I am switching to Geico starting from 04/12. Requested her to cancel my Safeco insurance starting from 04/12. In fact, I was working with her to get the quotes for Safeco all along as well.
Safeco actually cancelled my insurance on 04/12/2012 12:01AM. Considering 04/12 starts from 12:01am, Does it mean my Safeco insurance is not valid during 04/12.

rustum

My Safeco insurance has expiration date of 04/11. Does it mean, my insurance is expired on 04/11/2012 12:01am. I never checked the exact time though. My Safeco policy does not have specific time.

lilyowen

that's what I thought. Your Safeco insurance expired on 4/11 at 12:01am, you told your agent to write you with a different company on 4/12. If he just let your Safeco policy expire and wrote you with Geico on 4/12 you would really not have had any coverage on 4/11. So ... he let the Safeco policy renew and run for one day and then started a Geico policy as you requested on 4/12.

Based on what you requested, it sounds like the transaction was completed correctly.

stever

If I called up my agent and told him my coverage expired 4/11 and I wanted a new company to kick in on 4/12, I'd expect the agent to find out the actual expiration and write it up so there was no gap in coverage. That's always happened before - they ask. Seems pretty basic.

Guess that's why I've only had a couple of agents in the last 30 years, preferring to do it myself. I currently have a "local" agent since our move to Michigan because he beat any of the auto rates that I found by phone and online. And after we got insured and got a quote, we got a bill for about 2/3rds of what the quote was. The agent assured us that the bill was correct.

Naturally a corrected bill arrived a month later in the full amount. Not the sharpest tack if you know what I mean.

The bill on my current policy just says the policy is good through such and such a date. The actual time it expires is on the renewal declarations page, in a smaller font. Makes you wonder why the regulators permit the fine print, much less allow the confusing language, since the end of the day is not 12:01 am on the same day. That's the start of the day.

Not only that but I'm in Eastern time and my policy is written in Central time.

mr_scott1

Well it happened to me... I was stopped at a red light when a guy talking on his cell phone somehow missed seeing me and hit me at 45MPH. My 2012 F150 that i've had maybe 6 months has a bent frame all the bed components are trashed, bumper and all it's compenents are destroyed, Bed was pushed into the cab of the truck and put some damage there, though the bed doesn't touch the cab now, so I'm guessing the frame flexed from the hit.
The body shop wants to section out the rear third of the frame and weld in a new part and replace all the other components, and repaint, ect.
Seeing as how the truck will be reported as having frame damage, is there any way in TX to push the insurance company to total the truck?
If I can't get it totaled, how much in diminished value should i push for on a 6 month old truck with 6,000 miles that was in showroom condition before the accident? It's a 2012 F150 XLT Supercrew 5.0 v8 with electronic locking Diff, power, chrome, and towing package.

The body shop guy that looked at it said the frame section is $2000 plus 10 hours of labor just to install that piece. He said it doesn't include the labor to remove everything to get to it. Then add in the costs of all the other parts that will need to be replaced and repainted. He just guessed that it's going to be around $12k but without a full inspection, it's just a guess. How much value is this going to loose having a frame section replaced, and then having half the truck getting repainted, and we all know resprays are almost never as good as factory.

qbrozen

I'm really not sure how diminished value works. Seems I've heard that getting paid on diminished value is near impossible.

No way they are going to total it for $12k. It certainly isn't a cheap truck.

How much less will it be worth? Well, that is typically dependent on the value. When the truck is worth $30k, it might affect it by 10%-15%. When its worth $20k, it might hurt it by 20%. Its all relative, and I don't know if anyone could have a definitive answer on it.

Some people like to think previous damage doesn't devalue a vehicle if repaired right, but they'd be wrong. As long as it shows on carfax, it is definitely not worth what a clean one is. The trick then becomes: how low do you have to go to get someone to buy it instead of the clean one?

imidazol97

>How much value is this going to loose having a frame section replaced, and then having half the truck getting repainted,

a friend with a couple year old Ford pickup tried to trade it in at the Ford dealership where he bought it new. They wouldn't take it because it showed an accident with damage to the rear painted bumper on CarFax. This was a parking lot accident with damage to the other car at fault and superficial damage on the clearcoat on the white bumper on the truck. So in his case diminished value was quite a bit.

euphonium

Inform the adverse insurance company you are willing to accept a brand new replacement truck equipped as yours was/ is & you would be willing to sign a non injury statement. A non injury statement can be worth up to $10,000 in order to settle the Bodily Injury Liabilility potential claim.

If the above isn't acceptable, then be willing to accept a replacement truck and the most you will contribute to that would be $3,000 due to usage you have had.

pumpirony

I'm a little confused about Salvage Titles. From everything I've read, a car needs to have damage amounting to more than around 70% of its value in order to be considered a Salvage vehicle. So how is it that I constantly come across ads that say things like "This vehicle has a salvage title due to a minor hit on the front bumper"? Clearly, a minor hit on an $8000 car's bumper is not going to cost anywhere near $5600 to fix. Are sellers like these just lying through their teeth and/or hoping buyers are complete idiots? Or is there a legitimate way a vehicle with minor damage might get a salvage certificate?

igozoomzoom

Every insurance company in every state has their own guidelines for declaring whether a vehicle is a TOTAL LOSS. Repairs that exceed 50% of the car's actual cash value is the industry-wide minimum starting point for total losses. In other words, cars that can be repaired for 49% of ACV are never 'totaled'.

But the threshold is usually higher than 50% for most companies. It can also vary widely within a single company. Geico might have a 60-70% threshold for claims in the state of Virginia; but a 75-80% range as a rule for claims in Georgia.

The vast majority of insurance company will total anything at 75% repair cost or higher. The salvage value for the vehicle, avoiding paying for a rental car during repairs and closing the claim much faster will easily account for the remaining 25%. They also like to avoid the risk of reopening a claim on an extensively repaired car, so they eliminate that risk by getting rid of the car.

The vast majority of 'totaled' cars with fairly minor to moderate damages are third-party claims. To the company that you have auto insurance with, you are considered the 'first party'. If you hit another vehicle and you are at fault, you insurance company has to pay for the other guy's car- the other guy is the 'third party'.

They have a legal contract with you and, as long as they repair your vehicle properly, they have lived up to their obligation. If your car has an ACV of $20,000 and repairs will cost $10,500, they will repair it and their legal obligation is met.

But with a third-party claim, the vehicle's owner has more rights in most states and the total claim cost could be a lot higher than just the vehicle repair! They may claim thousands in diminished value as a result of the accident, they could file claims for future problems that they believe stem from the accident (example- their A/C system needs replacing six months after the car had extensive repairs from a frontal impact; components near the A/C were damaged or replaced, and most courts will side with the third party in such a situation). Those things can easily cost a lot more than just totaling the car at the 50% repair cost mark. There are also some third parties that clearly intend to make trouble for the insurer, drag the claim out as long as possible, involve outside appraisers or even file a complaint with that state's governing office over insurance. In a lot of cases where the adjuster or claims rep feels that the person will be "trouble", they will total a car just so they can walk away from the potential hassles. I have seen one case like this where the car was a 3-week old Lexus (the cheap one, but ACV still about $29,000) and the repair cost was going to be less than $6000 (repair cost 20% of ACV) but the third-party was the wife of an attorney. Two days into the claim, the insurer just cut a check for $29k to be done with it! But it takes a special kind of @-hole to accomplish that!

With all of that said, PLEASE BE VERY CAREFUL if you are thinking about buying and repairing a car that has been declared a 'total loss'...no matter how good the deal may seem!!! For every one success story I hear about buying a salvage vehicle and getting a great car for a steal, I hear 50 horror stories that often can't be fixed! Just recently I read about a young man who bought a salvage titled Infiniti G35 coupe (his dream car) and repaired the body damage and most mechanical damage on his own over s period of almost one year. He was planning to pay for paint work and to finish the mechanics, but when he took it to the body shop to be painted, they discovered extensive frame damage AND the driver's side airbag had deployed in a prior accident and never replaced. The diagnostic control module (computer that controls the airbags and seatbelts) had also been removed and several other components required for the SRS/airbag system to work were also gone! The safety components would cost at least $5500 to replace. But that was irrelevant because the frame/structure damage wasn't repairable at any cost!!! He had about $18,000 invested (and a year of his own labor) when he learned the truth! At that time, comparable G35 Coupes (same year, make, model, miles) started at $19,500! He spent $18k and had nothing of any value, but for $1500 more he could have had a never-wrecked, perfect condition example of his dream car...I really felt sorry for that poor kid....

Before you buy any salvage vehicle, it is CRITICAL that you have a mechanic or body man who SPECIALIZES in that specific make of car perform a FULL inspection!!! Even if costs you $150 or $200 to have them go take a good look or even have it towed to their shop, it will be the smartest thing you could ever do!!! They will be more qualified to tell you what the car needs and how much it will cost than anyone else , period.

One final note, many auto insurance companies will NOT sell physical damage coverage for anything with a salvage title. PD coverage is commonly know as Comprehensive (aka- Comp or "Other than Collision") and Collision coverage. So even if you buy and repair the car for a steal, you may only be able to buy Liability and Uninsured Motorist Coverage, not full coverage with PD.

pumpirony

Thank you for your very detailed reply. It did a terrific job of explaining something that didn't make a lot of sense to me.

However, I would be curious to know what you would make of the following situation: You run an Autocheck and the ONLY negative item is a Salvage Title. No Junk title, no accidents reported, no police reports, no insurance loss title or probable total loss record. Is this an indication of a problem with relying on Autocheck?

justpick

A van was stopped in the middle lane of a highway. My wife slowed her Toyota Corolla to avoid hitting it. The sedan behind her rear-ended her, causing her car to swerve and crash into the far-left guard rail. She was able to drive the car home, slowly--the engine wasn't hit--but there's enough damage to the back (trunk won't close) and entire side that it's not feasible to drive. The driver who hit her apparently isn't interested in filing a claim, because we've been calling his insurance company (Geico) and he hasn't been returning their calls. And the van driver is out of the picture, though the police spoke with him. Meanwhile we're without the car or a rental. So we just have to file the claim with our own insurance company and accept the consequences? (higher premium, possible liability for guard rail damage, etc.). There's no other action we can take to get the involvement of the other insurance/drivers?

qbrozen

That's pretty much it. Geico isn't going to do a damned thing. Your insurance company will go after them and force their hand. Ultimately, no response from the other driver is an admittance of guilt.... but again, Geico won't cop to that until they are forced to.

But, yes, the really crappy part is that, if your insurance comes up for renewal before the case is settled, you will very likely wind up paying higher premiums.

euphonium

First: Confirm that the "At Fault" driver really has/had insurance. Assuming he did, you file a claim with his company that includes photos, estimate of repair, & police report. If the AF driver is without insurance, then claim under your Underinsured Motorist Property Damage coverage you have with your company. If you don't carry UMPD, then you at least have a Collision claim.

Your future premiums will not increase. You are not liable for the guard rail damage because you were not the proximate cause of the crashes.

When the AF driver fails to communicate with his company, that does NOT prevent you from making the claim. His lack of cooperation does not control your progess to indemnification. Ignore him for now and advise the adjuster you expect your car to be repaired and they are to provide a rental vehicle until the repair is completed.

Be Pro Active in situations like this. :mad:

stever

Isn't that what your insurance company is supposed to do?

qbrozen

When the AF driver fails to communicate with his company, that does NOT prevent you from making the claim. His lack of cooperation does not control your progess to indemnification.

Actually, it does. I've had this very thing happen, and the offender's insurance company wouldn't lift one finger without their client confirming guilt.

Now, I would imagine that an accident report could help the situation, but that takes time to process, so that's still time you are without a vehicle and nobody working on the car.

I have actually had this problem twice. The first time, I went ahead and used my insurance company and let them go after the other party. That wound up taking a whole year and I paid increased premiums because of it. Their reasoning was that the case wasn't settled and as long as they paid for the repairs, it counts against me. The second time, I didn't fall for that same trap and just waited for the other party's insurance company to come through. I did, however, have a spare car to drive around in, so I could get away with it that time. Luckily, that was settled in weeks rather than a year.

euphonium

Only if you instigate a claim under your own policy. Your company has agreed to defend you in case of Liability, not be a lawyer service agency.

Many Independent Agents will help in cases like this, but the companies are not obligated to be pro active for you.

It is your personal duty to be responsible and pro active in cases where you choose to not activate your insurance.