Legal Question in Personal Injury in Florida

Re: car accidents

Under the law, the insurance company only has to pay the value of the car, not the loan amount.

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Re: car accidents

This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

The insurance company has to pay the full value of the car (not necessarily the blue book value), and reasonable expenses for loss of use of the vehicle. You can sue, however you should discuss with an attorney because it will be a fact specific decision, and you have to consider the cost of the attorney as part of the recovery. You may have a better chance of obtaining the "full" value if you bring the property damage claim along with an injury claim, if any.

Re: car accidents

Unfortunately, the law requires the insurance carrier to pay you "the fair market value" of your car. The amount may be negotiable to some extent. There are features (ie. mileage, appearance) that would make your car worth more. And there are other sources to determine the fair market value in addition to the blue book value. I would encourage you to speak to the adjuster about the offer and attempt to negotiate more. However, the amount of your loan is not necessarily an indication of the value of your car, and often folks end up upside down in the loan when someone damages their vehicle. I know it doesn't seem fair.

Re: car accidents

You are not limited to the artificial blue book value. I instruct clients to demand from the insurance company actual real life quotes for similar cars on the dealers lot and to check them out themselves. You did not intend to auction your car when it was totalled. The law holds you entitled to the fair market value less salvage plus loss of use and towing. You should also check if your finance contract had "gap" coverage to prevent being upside down.

Re: car accidents

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

The insurance company is required to pay you the full market value of the vehicle and not only the blue book or wholesale value of the car. You should negotiate with the adjustor and try to obtain a better result. You should also check your own insurance to see if you have gap insurance which might cover the difference of what you receive and the amount to payoff the loan.

Scott R. Jay, Esq.