Legal Question in Civil Litigation in Texas

Re: Auto accident involving uninsured driver

Sounds like you are what is called "upside down" on your car. This generally results from one of five things -- (1) paying too much for your car, (2) financing your car at too high a rate, (3) financing your car for too long a period, (4) depreciating your car faster than you're paying it down, or (5) a combination of these. From a financial perspective, paying no down payment and financing a car for 5+ years oftentimes results in this type of scenario. From a usage perspective, this occurs from driving the car LOTS of miles in a short period of time (~ > 20,000 miles per year). In short, you owe more money than what your car is worth.

Your frustration is understandable, but there is generally not too much that can be done. The insurance company is only required to pay the value of the car at the time of the accident, not how much you owe. If you owe more than what the car is worth, you get put into a tough spot.

Recommendations: find out the basis of the insurance company's valuation. If they're using something besides N.A.D.A. or Kelly Blue Book value, retort with N.A.D.A. or Kelly Blue Book (which will generally be higher). You may also be entitled to make a claim for the loss of use of your vehicle from the time of the accident until your claim is resolved.

If you were injured in the accident, I recommend trying to hire a personal injury/auto accident attorney. They will usually handle your property damage claim in conjunction with your personal injury claim. I would recommend contacting Stephens & Anderson, L.L.P. at http://www.stephensanderson.com. Merry Christmas.