Compensation for vehicle damage

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Compensation for vehicle damage

Rear ended at stop sign in Michigan.
Other driver at fault. damage to rear
end exceeds blue book value. my
insurance company said they would only
be able to collect some of the repair
cost from the other driver. This
doesn’t sound right.

Asked on March 20, 2017 under Accident Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The law only gives you the lesser of the repair cost or the then current fair market, or blue book, value. That is because you are not allowed to force the other side (or an insurer) to do or pay for something uneconomical or unreasonable; it is not reasonable to pay more to repair a vehicle than that vehicle is worth. So you would be limited to receiving at most the blue book value, IF the car is totalled (which means you turn the title over to the insurer; you basically "sell" it to them in exchange for its then-current value), or, if you are not willing to total it and turn it over, the insurer may pay you some amount less than the blue book or fair market value.


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