Legal Question in Insurance Law in California

Accept or Refuse Insurance Settlement for Auto Accident

I have been asked to accept a settlement of less much less than high blue book for my auto that was delared totalled. They provided a rental car, but did not pay tax or insurance. I was not driving or at fault. My car was parked in a parking lot when it was hit. I was not in the car. A police report & insurance information exchanged. They wanted info to support my claim that I could not buy a replacement for their offer. I sent it. They offered me less than originally and said it is final. What should I do?


Asked on 7/27/00, 5:29 pm

2 Answers from Attorneys
Steven Murray Steven W. Murray, APC

Re: Accept or Refuse Insurance Settlement for Auto Accident

Your own insurer is one of three sources of your

recovery. The other two are the driver of the car

which struck yours, and the parking lot owner/

operator which charged you money to safely park

and supervise your vehicle and did not do so.

With some exceptions, you are free to try and negotiate

a settlement with each one of them separately.

You need to get the Sunday classifieds for your nearest

metropolitan area, and the auto trader, and look on the

internet for comparable vehicles to yours. This

information should be given to the adjuster to show

your car's value. The blue book is also useable.

Your damages are the fair maket value of your vehicle,

or the cost of repair of your vehicle (assuming it is

repairable), plus the rental value of substitute

comparable transportation, plus any other expense

you incur.

Once you have evidence of these amounts, it is up

to the insurer (or the defendants) to show where

you are in error and then you try and negotiate as

best a settlement as you can. You don't need to

justify a lowball offer from your own insurer. Ask

for the COMPLETE appraisal/valuation the insurer

obtained to support its offer.

Call me if you need to discuss this.

S. Murray

(818) 501-2277

Read more
Answered on 9/12/00, 8:23 pm
John Hayes The John Hayes Law Offices

Re: Accept or Refuse Insurance Settlement for Auto Accident

You have up to three years to file suit against the driver who hit your vehicle. If the amount you want is under $5,000 you can sue in small claims court. If it is over you will have to file suit in Municipal Court. I can help you prepare a lawsuit if need be. You might also have a case for third party bad faith on the part of the insurance company. I would have to discuss the actions of the adjuster with you before I could determine if you do have a claim for bad faith. If you have provided the adjuster with all of the information he has requested and he still refuses to offer a fair settlement than I think the only thing left to do is file a lawsuit. After the lawsuit is filed insurance companies usually settle for a fair amount because it is cheaper than hiring an attorney. If you need help filing a lawsuit please feel free to contact my office at 877-546-9919. I hope I have given you some insite into the legality of insurance companies practices.

John Hayes, Esq.

Read more
Answered on 9/12/00, 5:27 pm


Related Questions & Answers

More Insurance Law questions and answers in California