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If you get involved in an accident in which there are persistent problems, don't sign ANYTHING, no matter how "minor" these problems seem to be, without seeking competent advice from a qualified attorney.
My subtle point, was just as you state, that it because the loss was property (not bodily injury), there may not be enough $ to recover to warrant the time and expense to take it to court. Especially since they were offered a grand from the Ins co.
The damage is 14k which includes welding a broken piece of the engine block back on.
My concern is I checked with MINI and this process being performed will void my 4 year/50000 mile warranty (my car only has 13000 miles)
Can my insurance company intentionally, with knowing, have my car fixed in a way that will void my warranty?
What recourse do I have? I have advised them to NOT START the repairs until I look into this.
Mark
There were a number of class action suits filed against many life insurance companies (Prudential, MetLife, New York Life, etc.) for alleged deceptive trade practices in the sales of life insurance and annuities. Most were settled out-of-court. The attorneys got their legal fees and the consumers got the opportunity to have an enhancement (3-6% added to their deposit) IF they bought a new contract. Or, if they retained the original contracts, the enhancement was in the form of a lowered policy loan interest rate.
I've heard of other cases in which consumers received discount coupons as redress.
The attorneys also have the right to decline cases after an evaluation. The case may not be winnable, recovery may be unlikely, or the dollar value may be too little to be worthwhile. Justice does not get achieved for justice's sake alone.
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It is the duty of State Farm to "work with" ALL body shops including those chosen by the Insured. State Farm, getting a volume discount, may involve generic parts rather than Factory authorized parts, may involve a refinishing process that cuts corners, and after all, why should the Insured lose control over who repairs his vehicle? The insurance contract is to indemnify, not dictate. Where in the policy does it say - "In case of loss, the company shall have the right to chose the repairer?" It doesn't.
This is subject to the insurer and the body shop coming to an agreement on the work to be done and the cost. In the event this cannot be done, the insurer will issue a check to the claimant for a full release and the claimant is free to use any shop of his choice who agrees to do the repair for that amount, or to pay the difference.
The advantage to the claimant who agrees to use the insurer's "preferred" provider is a satisfaction" "guarantee" on the repair work. This won't work in cases where the claimant is a "pill" who may NEVER be satisfied, regardless of who does the work. There is no satisfaction "guarantee" when a "preferred" provider is not elected.
My "customer from hell" was just like that. The insurance company "totaled" her Chevy Celebrity :sick: , but she refused and opted to take the lesser amount (ACV - salvage) and had the car "repaired" by some guys who could not do the job. Personally, I don't think ANYONE could have "salvaged that car beyond salvage." She ended up trying to sue that shop (the one of her choice).
1. Is that a good price ? My research on KBB and other sites showed this to be close to an equivalent used car price ..just want to make sure.
2. I was asked to sign a power of attorney to transfer the title of my vehicle to the insurance company before they process my claim...is this normal ?
any advice would be appreciated
Signing the power of attorney (POA) is normal here in GA for a totalled car that the carcass is turned over to the ins (so they can sell it to a junkyard for a few hundred $$$)...signing the POA allows them to handle all the paperwork to dispose of the vehicle so you can walk away with your check...assuming it is strictly for property damage only, I would say sign it...but, it may pay to ask a trusted friend, or a lawyer, just to cover your buns...
In 2001, my daughter totaled my 1987 Legend L coupe. GEICO paid $3750 ($4250 - 500) after initially offering $3500. The car was not worth more than $2000-2500 tops in running condition (167K on the clock, cracking leather, though the body was good).
Same thing here with signing that POA - it allows them to handle the paperwork. Similar to buying a new car - the dealership processes the title and registration paperwork on your behalf. No need for you to stand in line.
No just only ordinary maintenance, but I believe aftermarket addons like spoilers, stereos and accessories are not commonly covered as well.
Good Luck!
When an Insured gets an exceptional low price on a purchase as your "client" did, perhaps he really didn't make $1100 on the car because the replacement cost at a dealership could be more than $2700 at the time and place of the wreck.
I understand the law of agency causes the insurance agent to represent his company and the buyer of the policy is not a "client" because the agent does not represent the client in the same way an attorney represents his (customer) client.
In attempting to upscale the insurance agency level of professionalism, the agents have been adopting "client" rather than "Insured" or "Customer". This leads the public to paint a more "professional" image on the insurance salesman, thus expecting more professional expertise and results in more Errors and Omission claims. "You can't make a silk purse out of a sow's ear."
P.S. Even a CPCU is an agent of the company & his policyholders are Insureds.
The first accident in April of 2003 was caused by the driver of a rented truck changing lanes (more than 80%) & the deciding to move back into that lane which I moved into after his initial change. The truck's front right cab smashed into the drivers side of my vehicle causing over $2,000.00 damage. I actually did my best to avoid the vehicle by moving back into my original lane but a commuter bus had swung into that lane from a parked positon making that impossible. I avoided hitting the bus only to be hit by this truck that never saw me even though I was honking my horn constantly.
The 2nd accident was last June, 2004, when I was making a right turn from the extreme right turn & again a truck made a turn after me from an outside lane & smashed into the driver's side door causing over $3,000.00 worth of damage. THis time there was a witness that stayed over an hour to give the police her report of what she saw. She told them that I was not at fault & the truck just plowed into me & there was nothing could do.The cop who showed up made light of her story & said that as long as we both have insurance & no one was hurt-it didn't matter.
The minor violation happened when I made a right turn on a Saturday morning when there is a sign restricting that turn during certain hours. The police were just waiting for someone there to write an easy ticket. There were no cars around & it was not dangerous at all to make that right at that time. Anyway, I paid that ticket immediately.
I called AIG & they said that they are blaming me 50% for both accidents. In both incidents the other vehicle had no or little damage. Is there any way I can fight this?
I doubt it. All you can do is appeal to them, which is sounds like you already did. Who paid for the damages to your vehicle? If the other insurance company did, then you have zero at fault accidents, and shouldn't have a problem finding insurance. But if you're company paid anything, then you were at least partially at fault (in the eyes of the insurance company).
Good luck.
This happened about a year ago and I haven't noticed any increases in the two renewals since then for my 20% responsibility.
The insurance will cover your daughter in any occasion when she had to drive, for example, a rental car or her friend's car. More important, when she will shop for a regular insurance after graduating, there will not be a gap in her insurance history. It is rather difficult and expensive to get auto insurance with such a gap.
I have read recommendations that American who work abroad and do not even visit US for years ought to maintain nevertheless an American insurance to avoid the gap.
Like the Jiffy lube case where the lawyers got 2.5 million and the "plaintiffs" go a $5 coupn on their next oil change! That notice went into the circular file. :P
For the record: those life insurance company deals really reeked, too. I wonder how many consumers took them up on the deal and bought new contracts to get the enhancement. I have two carriers which would have credited 10-11% bonuses on new deposits instead of the measly 3-6%!
yurakm: those contracts are called either "driver only" or "non-owned auto" policies. We have used them for DUI cases in which the drivers sign off on the ownership of their cars. The premiums, while high, are considerably lower than if the cars are rated.
Offer to sign a "Driver Exclusion Endorsement". That may satisfy the Underwriter.
However, there are court cases where the above endorsement is not enforced because the "public safety" of financial responsibility laws does NOT allow an Insured to delete coverage for Bodily Injury and Property Damage within the statuatory limits of the law, usually 25/50/10.
Comprehensive and Collision coverage exclusion would stick though so when she drives, make sure it's not your new XJ8.
It was my first accident, and the responding officer even gave me a ticket for it (following to close), but the damage was minimal to both cars as it was under 5 mph. My deductible is $1000, and I'm guessing that will cover half the damage to both cars as the other car just has a cracked plastic bumper, and I can order the parts to fix my car for $500 online.
So the big question is, how can I expect my insurance company to react? My wife is freaking out thinking they might try to double or triple our rate, while I on the other hand think there SHOULD BE no change at all.
The way I see it is we've paid $4000-6000 in insurance premiums over the 2-3 years we've been insured by this company. So 1 claim that I think will cost THEM under $1000 (if there is no funny business on the part of the repair shop), shouldn't be a justification to raise our rates, right? Or will they do it anyway "just because they can"?
I'm guessing that the $1000 deductible you're referring to applies to collision losses on your car, not property damage (PD) liability caused by you to the vehicles of others. You may be surprised how much it will cost to remove, replace, and refinish the bumper cover of the other vehicle.
Any payments rendered of your behalf comes from the current pool of premiums, not the past. You're thinking of a "cash value" or "return of premium" type of policy design. The companies could design them from an actuarial POV, but the premiums would be astronomical. If you think they're high now, you haven't seen anything yet.
I wouldn't expect one small accident to increase your rates significantly, but I'm sure every insurance company is different. Here in Florida with State Farm, my 17 yr old son had a small accident, $2k to his car, not sure how much to the other car, but probably about the same. There was a 10% accident surcharge, plus he lost the "accident free" discount.
I am definitely going to pursue a DV claim. I have found out that the 3rd party insurance company is horrible. The body shop told me I should run the claim through my own insurer (State Farm) and I will be much better off.
So can I put in the claim with State Farm to get the vehicle repaired properly and back to me sooner, and file a separate claim against the other insurance company for diminished value? Obvioulsy, State Farm won't pursue that for me.
If the adverse driver submits the summons to Justice Court to his carrier, they may try to negotiate with you before the court date. Factual information is important.
Good Luck!
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