Legal Question in Civil Litigation in Texas

Insurance settlement didnt cover cost of damage.

I was in a car accident and the other party was at fault. My car was totaled and their insurance refused to pay my car off and I accepted a settlement from their insurance company that left me upside down in payment. I ended up coming out of my pocket for the remainder of my car payment and another down payment to get another car totaling about $3500. Is the person that totaled my car liable for my out of pocket expense that the insurance didnt cover?


Asked on 4/26/06, 5:07 pm

1 Answer from Attorneys
Charles White Charles G. White

Re: Insurance settlement didnt cover cost of damage.

Damages to the car are:

If totaled: Fair market value of care (Blue Book value is frequently used as a guide).

If not totaled: Ordinarily the cost of repair, plus loss of use which would be equated to reasonable rental value for a reasonable time required to repair the car. However, if cost of repair exceeds the value of the car, then the car would be treated as totaled, and you would get only the value of the car.

The amount of the lien against the car is not relevant to determining damages. Quite often there is more owed on the car than the value of the car.

The standard automobile liability policy covers the damages that the insured would owe - no more and no less.

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Answered on 4/26/06, 5:19 pm


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