Legal Question in Insurance Law in Pennsylvania
Car Insurance Problems
My van was stolen out of my driveway and recovered 2 months ago pretty banged up. My insurance company authorized the repairs instead of totaling the van. It has finally been released from the body shop and is now in the transmission shop (since the van hit something and destroyed the transmission during the time it was stolen). The insurance company is saying now that they are going to total the van. Since they paid the body shop $7,000 and the transmision will be $2,000, the insurance company is stating that the $9,000 accounts for the money that would have been due us if they originally totaled the vehicle (aprox. $9,000). Can they do this? Can they total our vehicle and not give us a dime? I still owe money to the finance company and after 2 months still do not have my van back. It is not my fault that they originally did not total the van and just give us the check. How can they're misjudgment, (between the insurance I have been paying the deductible I already paid and the $9,000 check I apparently will never see), cost me almost $10,000. It was bad enough to have the van stolen from my driveway, but we now feel as if we are being victimized again. Any advise you can give in this matter would be appreciated. Thank you.
3 Answers from Attorneys
Re: Car Insurance Problems
You asked whether an insurer can total out a damaged vehicle and still leave you with nothing.
This is another one of those situations where an attorney could have really helped in the first place. But any competent attorney can still help you now. The goal of insurance is to make you whole when injured. The insurance company can do most anything they like so long as they get you to go along with it.
In this case you must fight with them. They must make you whole. I'm not quite certain if they already have paid or will pay te body shop. No matter, they must get you back to the value the van had just before it was stolen. If they total out the van after having it fixed then they still owe you the value of the van. And they end up with the van without a transmission.
Again, hire an attorney and for a little work s/he should be able to settle this matter with finality.
Regards,
Roger Traversa
email: [email protected]
phone: 215.279.8940
Re: Car Insurance Problems
You're right. I can't see how any policy language would allow the insurer to do that.
Typically the insurer has an option to repair the vehicle, or declare it totalled and pay the value, and if they total it, the insured has the money instead of a damaged car. They can't change horses midstream.
Sounds like there may be grounds for a bad faith claim if they keep that up. I'm on vacation next week but if you want to call me after that, maybe we could help.
Re: Car Insurance Problems
From your description, it appears the ins co made a mistake, which is not your problem. The bottom line is that they must either repair your car to put it back into its original condition, or pay you the value. No setoffs. If you continue to have a problem you will need to consult with an experienced attorney. Please feel free to contact me office if you need more help. Good luck!!
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