Insurance Co. ripping off poor college student

[Judy Turske]

My son who is 23 and a college student, was broadsided by a car in Michigan going about 40 mph that ran a red light. Jeff had a 1990 Chevy Lumina with 195,000 miles on it. It looked great and ran well and would have lasted a few more years. The other driver got a ticket. He went to the dealership where the car was purchased and was told that he estimated the value of that car at around $3100. Progressive Insurance Company gave him a check for $1600 after they subtracted his $250 deductible. They told him to collect the $250 from the other insurance company. Now for him to go out and buy a car like what he had would cost him around $3000. I'm just wondering why he should have to have any expense when he wasn't at fault? He accepted the check from the insurance company a couple days ago but has not cashed it. Can he go back to the insurance company and change his mind, saying he either wants his car repaired (estimated $6000 in damages) or they find him a comparable car?

 

[Juan Rodriguez]

No, they won't repair the car or find a similar one for him. Their only obligation is to pay for his damages. Once the damages meet or exceed 80% of the actual cash value of the vehicle (not retail value), then it is deemed a total loss. By law they cannot pay to repair it. It is easy enough to check the value of your sons car. Go to any large book store read either the NADA, Black or Blue books.