QUESTION
What will happen if the car was totaled by the insurance company?
Asked on Apr 15th, 2014 on Personal Injury - Alabama
More details to this question:
My 22-year-old granddaughter was driving my car, with my permission. A truck came out in front of her and she swerved and crossed over 4 lanes into a gas station parking lot. Going over curbs. She wasn't charged, the other vehicle didn't stop. I owed a small amount on my car. My insurance wouldn't let me get my car back. They said they would sell it for salvage. The money that I owed the finance company came out of the money they gave me for my car. I just found out that my insurance company sued her insurance company for $8000.00. Can they do that? She wasn't at fault. Plus the money that they gave me for my car, the money for the finance company, was taken out before I got the check. I think my car should have been given back to me. And why did they sue her insurance company? Thank you.
5 ANSWERS
Ronald A. Steinberg
Insurance companies do everything they can to reduce what they have to pay, so they sue anyone they can. They have the choice of repairing or replacing your car.
Answered on Apr 22nd, 2014 at 10:40 AM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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You have tried to make this as convoluted as you can. first of all they didn't take your car. they bought it from you and you agreed to it, whether the amount was right or not is another issue. You made the decision so quit fussing about it. if a carrier pays damage they have a right to go after the person causing the damage. they will and they do. what is that to you?the bank or finance co will always be paid before you because they know that most people would not pay the bank or finance co. that is just the way things are done. you have tried to emotionalize and personalize this. It is only the way business is done.
Answered on Apr 21st, 2014 at 7:03 PM
Edwin K. Niles
1. If you kept the car, the amount would be less, as you would in effect be charged with the salvage amount. Why would you keep a totaled car? 2. If there is any question about fault, they will make a claim, and the two ins. cos. will battle it out. With no contact between the vehicles, it may look like she is at fault.
Answered on Apr 21st, 2014 at 7:03 PM
James Eugene Hasser
If it's totaled, and you accept payment, you have to sign the car over to the insurance company, who will, in turn, apply for a salvage title from the State.
Answered on Apr 21st, 2014 at 7:02 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally, if the insurance company took the option of totaling the car and paying to you it's fair market value them they on the car and do not have to return it to you. Because there is clearly a lien on the title of the car, it is also right incorrect for them to pay the lien holder off prior to giving you the remaining proceeds. Additionally, your insurance company has the right to bring an action against any person they believe is potentially responsible for their loss which they paid on your behalf. That would include your granddaughter.
Answered on Apr 21st, 2014 at 7:02 PM