Cheap Vehicle Insurance, My Auto insurance company is paying me less than what my car is worth
Question: So I am 20, just bought my first car a few months ago. it was a used 2008 Toyota Camry hybrid, it has around 100k miles on it. I put down 5k, and I am financing 11k.
Someone hit and ran my car and totaled it. Its going to cost 9k to repair the car. I looked on KBB and my car is only worth around 11k. Yes I know now, that I am too much for my car but I was just in a rush to get a car. So my insurance has declared my car a total loss and only want to give me 8k for it. I either want them to give me 15k for it, or pay for it to get fixed. Should I get a lawyer?
Answer: In your rush, it seems that you did not do any research prior to buying your vehicle. If you had researched this vehicle, then you could have tried to negotiate with the dealer for a better deal, or had passed on buying the vehicle altogether.
The problem is, you are mad at your insurance company, but your anger should have been directed to the dealer who ripped you off or yourself for not taking your time in finding a vehicle that is priced correctly.
Insurance pays you fair market value of your car. In other words, if not for the accident, what could you have sold this car for? Also take into account the mileage the vehicle had on it. 100,000 for a 6 year old car is rather high. Most insurance companies will average out at 12,000 per year, so, anything over 60,000 they take deductions, or if it has lower mileage, it then adds value to the vehicle.
If repairs cost around 75% of fair market value, the insurance company will total the vehicle, which in this case, the repairs exceed the value. So it seems as if fixing your car is out of the question.
It may be a good idea for you to call up a auto accident lawyer that is free to you unless they can get you money. If they do not take your case it is because they know they can not win. You may have to chalk this one up to a learning experience.