What should I do if the amount being offered for my totaled vehicle is not enough to find a replacement?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What should I do if the amount being offered for my totaled vehicle is not enough to find a replacement?
My only vehicle, which is 16 years old and well used, was totaled in a recent accident that was not my fault. As expected, the responsible parties insurance is offering the appraised value. Obviously, this amount is not nearly enough to buy a used vehicle that is similar. Since this is my family’s only vehicle, do I have any options to ultimately replace my vehicle without coming out-of-pocket? How do I get enough to replace my vehicle with something similar?
Asked on June 8, 2011 under Accident Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The insurance company, if it totals a vehicle, only has to offer the then-current market value; whether or not that is enough to replace the vehicle is not, unfortunately, a consideration at all.
You could try to sue the other party, if you believe they were at fault, BUT even an at-fault party only has to pay (assuming no medical costs, serious injuries, etc.; e.g. only vehicle damage) up to the car's value--and you can't collect twice, which means that if you are paid the car's value by the insurer, you can't get any more money from the other party--and you'll have incurred the cost of a lawsuit.
Again, insurance only pays the value of what was lost; it's not actually designed to put you in as good a position as you had occupied, and nor is the legal system.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.