Can You Recover More than the Fair Market Value of a Totaled Car

[jtop]

My question involves an injury that occurred in the state of: Florida

I was involved in an accident where the other person was at fault. I was hit by commercial vehicle from a roofing company. I sustained injuries and my vehicle is a total loss.

I had mechanical breakdown insurance on the car and it is only possible to get it if you are the first titled owner and it has less than 15, 0000 miles. If I buy a used car, I will no longer be able to have this coverage so I'll have to fix it out-of-pocket in the event of mechanical failure. I owe less on the vehicle than its value, which means I'll have money left over for a downpayment. However, if I take out a new car, I'll end up owing more than I did originally. Also, my interest rate was only 1.9%, and it may raise, which will cause an additional expense. I was wondering if I had a case to recover the amount it would take to get a new car (minus what I had owed on the car) from the person who is at fault since my insurance company will only pay the car's depreciated value.

[Mr. Knowitall]

You can recover the fair market value of your vehicle.

When you owe more than your vehicle is worth, you should consider carrying gap insurance. The other driver is not responsible for the terms of any vehicle loan you ultimately obtain.

[jtop]

Thank you for the response but that was not my question. I stated that I owe less than what the vehicle is worth and that I know the insurance company will give me the depreciated value (fair market value).

[adjusterjack]

Thank you for the response but that was not my question. I stated that I owe less than what the vehicle is worth and that I know the insurance company will give me the depreciated value (fair market value). I'm not sure why the title of my thread was changed because that is not my question.

Your question was answered by:

"You can recover the fair market value of your vehicle."

You are only entitled to that from the other driver's insurance company as well as from your own (unless you have one of those policies that replaces your car new for old).

The other items at issue aren't part of your compensable loss.

If you buy another brand new car to get the mechanical breakdown coverage and you pay a higher interest rate or have a larger balance than you have now, none of that is part of your compensable loss.

Yes, it is a loss, but not a direct loss so it's not compensable. That's a legal concept, the reality of which you can object to emotionally but would still have to grudgingly accept.

[jtop]

Thank you, but again, that is not what I am asking. Already stated in the original thread that I know that the car insurance company will give the depreciated value (fair market value). I am asking about recovering my additional losses from the driver who is at fault, not his insurance company.

P.S. my question was not "Can You Recover the Full Amount You Owe on a Totaled Car", an admin changed the title of the thread to that (not sure why because it makes no sense since I already said I owe less than what the car is worth).

[Mr. Knowitall]

The insurance company represents its insured. When you settle with them, you'll release their insured.

But once again, no, you can only recover fair market value. You may be able to recover sales tax and registration fees as part of that FMV, but you're not going to get more than the car is worth from anyone.

[jtop]

I'm not sure if I am not explaining adequately or if you're still answering based on the title of my thread (again, someone changed it to that). My question is NOT "Can You Recover the Full Amount You Owe on a Totaled Car" or Can You Recover More than the Fair Market Value of a Totaled Car". For some reason, someone keeps changing it to something utterly ridiculous that is not based on my question.

This is not about getting more than the car is worth. This is about reasonably recovering my expenses that are based on the accident. For example, I received a job offer and won't be able to start on the agreed start date due to the accident. It is likely the company will rescind the offer. I'll have to pay to fix any mechanical damage on the car I buy (wasn't the case before due to my insurance). Basically, I am suffering losses that I wouldn't have been subjected to if it wasn't for the accident. These are the types of things I'm referring to and wondering if I can seek compensation.

[Mr. Knowitall]

The problem is that you are not hearing what you want to hear. Your losses related to damage to your vehicle are limited to its FMV, and that's all you will recover. You cannot magically recover money that is not part of your actual loss because you believe you will have less favorable financing terms on your next car loan, even if you try to characterize those claims as "expenses".

If you need a car for a job, you had best (a) carry rental insurance (b) if you chose not to do so, see if the at-fault driver's insurance will cover a short-term rental, or (c) rent or buy a car such that it's not an issue. If you choose not to take the job or get fired for not showing up, that's entirely on you -- you won't get a penny from the other driver for the choices you make that cost you the job.

[jtop]

You're telling me that the only thing I have a right to recover is the value of my car (and I have no right to recover my medical expenses, missing work because of injuries, and any additional inconveniences)

Why would I not be able to take the job just due to not having a car? I already have rental coverage. However, I suffered injuries from the accident (stated that in the original thread). As a result of being injured, I won't be able to start on the date the company and I agreed upon. I would appreciate if someone with more experience in this matter would weigh in.

[adjusterjack]

You're telling me that the only thing I have a right to recover is the value of my car (and I have no right to recover my medical expenses, missing work because of injuries, and any additional inconveniences)

Nobody's telling you that at all. In fact, none of that has even come up in this thread until now.

I would appreciate if someone with more experience in this matter would weigh in.

Someone already has. I spent 35 years in the insurance industry, the last 9 as a claim rep before I retired. As such I can attest to the fact that Mr K knows what he's talking about on such matters.

Your injury and your car damage are two separate issues and so far we've only been discussing the car until your most recent post.

I DO understand what you are asking and will now endeavor to clarify the car and the injury issues.

Why would I not be able to take the job just due to not having a car? I already have rental coverage. However, I suffered injuries from the accident (stated that in the original thread). As a result of being injured, I won't be able to start on the date the company and I agreed upon.

I think your original statement was written in a way that resulted in the conclusion that you couldn't start the job because of lack of a car.

Now that you've clarified that point, any loss of income you suffer as a result of the injury is compensable along with your medical expenses and any incidental expenses you incur as a result of the injury along with an amount for pain and suffering.

Understand one thing however. For loss of income to be compensable the injury must render you physically unable to do the work for which you were to be employed. So if you want to explain what the proposed job duties are and why you would be physically unable to perform them I'll be happy to confirm whether loss of income would be compensable.

As for the car, I think we've already covered that but I'll reiterate.

1 - You're entitled to the actual cash value of the car as determined by the insurance company's statistics. That could include tax and registration.

2 - Since your car is a total loss, you're entitled to a rental car from the date of the accident until the insurance company calls you up and says we are paying X dollars for your car. That's the last day that they are obligated to pay for the rental. I can already sense your high dudgeon about that but that's how it works and expressing displeasure won't change it. Further, they will only pay the pure amount of the rental cost, and not for any of the optional stuff that the rental company wants to sell you.

3 - With regard to the additional coverage on mechanical breakdown, you say you got it on this car but can't get it on any other car that you buy. I googled and it's available for used cars as well as new cars. If it was listed as an item on your purchase contract with a separate charge you can see if you can get a refund for the unearned premium and then apply the money to another car purchase.

4 - Paying a higher interest rate on a replacement car - No.

5 - Taking out a bigger loan on a replacement car - No.

I think that about covers it.

Let me know if you have any other questions.

Oh, about getting additional money from the driver after his insurance company pays, also no - not going to happen.

Bottom line, if the driver's insurance company's offer doesn't please you, you are free to decline the offer and file a lawsuit and try to convince a judge that you are entitled to more money.