My First Auto Accident - Please Help with some questions - I am a Student

[rajjar123]

What is the name of your state? I live in Texas.

Hi All,

I am a graduate student in University of Texas. During September 2005, I met with a rental car accident in Indiana. I took liability from the rental car company and I declined their CDW since my American Express Blue Card offered my insurance. I dont own a car and hence AMEX told in that case, it would be my primary insurance.

After the accident happened and all the formalities done, I still don't know the outcome of the issue. However, last week I received a letter from some company called Alternative Claims which cc'ed me along with AMEX Claims deptartment and sent details about all the cost like Loss of Use, Diminution of Value, Repair, Administrative Etc. Everything included the total comes to $17,500 dollars. Recently I looked up AMEX agreement and it says it will not cover loss of use / dimunition of value. I am worried because if it is only loss of use, I can pay $600 by myself but if AMEX does not pay administraitive fees + dimunuition of value, my total liability would be like $11,000 dollars.

My questions are as follows:

1. I don't anything about insurance things, since this was my first accident. Will AMEX pay for dimunition?.
2. If it does not pay and I am held liable what should I do? I dont have more than 2000 dollars in my bank. How will they collect money from me?
3. I feel whatever the rental company claimed is ridiculous and bogus. The total cost of car would be 22,000 dolllars. They say they sold it off and still how can they claim 17,500 dolllars. I dont understand. Assuming 5000 dollars for repair, how can they charge another 12,000 for dimunition?
4. What if cannot pay if I am held liable, what will happen then?
5. Will a lawyer be able to help me in my situation?
6. How can I know if I am at-fault or not?

Thanks a lot for all your time in replying to my questions. I am expecting your replies.

 

[JETX]

I don't anything about insurance things, since this was my first accident. Will AMEX pay for dimunition?

Since they already told you they won't.... seems like your question has already been answered.

If it does not pay and I am held liable what should I do? I dont have more than 2000 dollars in my bank. How will they collect money from me?

First, you should NOT be held liable for 'dimunition of value' as a recent ruling in Indiana court (Allgood v. Meridian Security Insurance Company) said that insurance policies are not obligated to compensate damaged property for decline in value of the property after adequate repairs have been made.
It was appealed and the state Supreme court denied transfer finding "that an insurance policy that provides coverage for loss limited to the lesser of the actual cash value or the amount necessary to repair or replace the property with other property of like kind and quality does not obligate the insurer to compensate for diminution in value of the property after adequate repairs have been made."
http://www.in.gov/judiciary/opinions/pdf/10270502trb.pdf

I feel whatever the rental company claimed is ridiculous and bogus. The total cost of car would be 22,000 dolllars. They say they sold it off and still how can they claim 17,500 dolllars. I dont understand. Assuming 5000 dollars for repair, how can they charge another 12,000 for dimunition?

You need to READ the claim. It is likely that a large part of that claim is for loss of the POTENTIAL rental fees while that vehicle was damaged.

What if cannot pay if I am held liable, what will happen then?

Presumably, they will get a judgment against you and start pursuing your non-exempt assets, if any.

Will a lawyer be able to help me in my situation?

Very likely.

How can I know if I am at-fault or not?

KNOW??? Only a court can determine that... based on a FULL review of the accident.

I am expecting your replies.

You were doing okay until I got to that. On seeing that statement, I damn near deleted my entire post!! We owe you NO replies whatsoever and respond only at OUR convenience.

 

[seniorjudge]

What is the name of your state? I live in Texas.

Hi All,

I am a graduate student in University of Texas. During September 2005, I met with a rental car accident in Indiana. I took liability from the rental car company and I declined their CDW since my American Express Blue Card offered my insurance. I dont own a car and hence AMEX told in that case, it would be my primary insurance.

After the accident happened and all the formalities done, I still don't know the outcome of the issue. However, last week I received a letter from some company called Alternative Claims which cc'ed me along with AMEX Claims deptartment and sent details about all the cost like Loss of Use, Diminution of Value, Repair, Administrative Etc. Everything included the total comes to $17,500 dollars. Recently I looked up AMEX agreement and it says it will not cover loss of use / dimunition of value. I am worried because if it is only loss of use, I can pay $600 by myself but if AMEX does not pay administraitive fees + dimunuition of value, my total liability would be like $11,000 dollars.

My questions are as follows:

1. I don't anything about insurance things, since this was my first accident. Will AMEX pay for dimunition?.
2. If it does not pay and I am held liable what should I do? I dont have more than 2000 dollars in my bank. How will they collect money from me?
3. I feel whatever the rental company claimed is ridiculous and bogus. The total cost of car would be 22,000 dolllars. They say they sold it off and still how can they claim 17,500 dolllars. I dont understand. Assuming 5000 dollars for repair, how can they charge another 12,000 for dimunition?
4. What if cannot pay if I am held liable, what will happen then?
5. Will a lawyer be able to help me in my situation?
6. How can I know if I am at-fault or not?

Thanks a lot for all your time in replying to my questions. I am expecting your replies.

Q: 6. How can I know if I am at-fault or not?

A: Tell us what happened.

 

[sukharev]

You were doing okay until I got to that. On seeing that statement, I damn near deleted my entire post!! We owe you NO replies whatsoever and respond only at OUR convenience.

Ohh, relax, Jetty, that's been lost in translation

I am sure he meant "I am patiently awaiting (looking forward to) your replies"

 

[JETX]

Ohh, relax, Jetty, that's been lost in translation

I am sure he meant "I am patiently awaiting (looking forward to) your replies"

So, SuckHead has now taken to trying to interpret others posts!!
What an incredible talent you must have.... clearly unappreciated on this forum.

 

[rajjar123]

THANK YOU JETX and ALL OTHERS

JETX and for all others,

First , I appreciate and thank you very very much for taking time to answer my questions. JETX, I did not mean in any rude way that I am expecting your replies. As the other user pointed out, I was only looking forward to it. So please dont mistake me if my language is wrong.

Others, I also equally thank you for your help.

 

[rajjar123]

Some more questions and my accident details for SeniorJudge's questsion

NAME OF STATE: TEXAS

JETX and Others,

Here are some more details about my accident (for seniorjudge's question) and some more questions I have.

For deciding at fault or no-fault:

I was waiting outside a gas station in Indiana after putting gas to turn into the opposite direction of the road. The gas station was on the right hand side of the road. The road was curved and it was raining heavily. I drove my car into the center of the road between and was giving right-of-way to vehicles. Since it was a curved road, and could'nt see any car coming, I took a turn. Unfortunately, in the blink of an eye a lady came at high speed in her honda accord and hit my pt-cruiser on the passenger side of the car.

When the police came, the did not issue me or her a ticket. Instead when I got my police report next day, the report said that road condition was wet etc and driver 1 (myself) failed to give right-of-way. I was shocked and talked to the cop who wrote the report the next day explaining that I cannot anticipate cars coming in a curved road. I told him I didnt see any car to my visibility but when I turned, the other came definitely came at much higher speed than 35 mph (speed limit on that road). The cop, howver refused to change the report and told that it is upto the insurance companies to decide. The estimated damage given by cop was $2,500.00

I left Indiana and filed for claim to AMEX Blue card CDW department. After 3 months, I recently received a letter from Alternative Claims on behalf of the rental car company listing the following details:

Dear Claims Dept,

I am writing you on Behalf of Ace Rent a Car. We have been retained by Ace rent a car to handle this file. I have enclosed information pertaining to above claim. We are now prepared to settle the above-mentioned claim.

Physical Damage - Insurance Billing: $5,859.64 Insured Billing: Deductible
Loss of Use - Insurance Billing: $600 Insured Billing: $600
Diminution of Value - Insurance Billing: $10,002.5 Insured Billing: $10,002.5
Towing/Storage - Insurance Billing: $222.50 Insured Billing: $222.50
Administrative Fees - Insurance Billing: $500 Insured Billing: $500.
Total - Insurance Billing: $17,184.64 Insured Billing - $17,184.64

ALL FEES ARE CONTRACTUALLY OWED PER THE RENTAL AGREEMENT'S TERMS AND CONDITIONS. ANY PORTION OF THESE FEES NOT ADDRESSSED OR PAID, WILL BE OWED BY YOUR INSURED, INCLUDING THEIR DEDUCTIBLE.

Please send remittence for the total to Alternative claims dept, bla bla

Sincerely,
xyz.

Now here are my questions: Sorry once again to bother you all. I am really worried since this is the first time and I am student from an international country. I really appreciate any answers / suggestions that you all might give it to me.

1. What is differnce between insured billing and insurance billing?
2. what is the deductible that the person said in the letter?
3. If american express does not pay for diminution of value, I am screwed.

Now, Jetx: I read your reply about the Indiana court ruling. However, I am still confused becuase in that case, the court ruled that Insurance Policy is not liable to pay for dimunition of value. I accept that. Then, it means that AMEX need not pay for dimunition of value. But, in that case, will I still be held liable or does it mean since I am covered by AMEX policy, the court ruling also implies that I cannot also not be held liable. Please help.

4. I dont have many known people in this country and I am scared. Please tell me who would be right person to talk to - what attorney and how do I deal with this situation.

5. If you see the details of claim, as I said in my first post, it seems ridiculous. They are claiming the price of the cost of new car. Why does rental company charge diminution after getting it repaired. In that case, jokingly speaking, I could have bought the car from them!.

I faxed this letter to AMEX yesterday and I still don't know what will happen. If you guys want, I can post the terms and conditions of my AMX policy.

Thank you very very much for all your time and kind replies.

Sincerely,
raj

 

[seniorjudge]

When the police came, the did not issue me or her a ticket. Instead when I got my police report next day, the report said that road condition was wet etc and driver 1 (myself) failed to give right-of-way.

I agree; you didn't really clearly explain what happened, but when you are in someone else's lane of traffic, you are at fault.

 

[rajjar123]

Thank you Seniorjudge

Thank you senior judge.

I understand the situation of who's at fault. Could you advise me about the diminition of value issue?.
If I am at fault, my liability would have payed for the other party. However with regards to damage claims with my AMEX CDW,

Will I be held liable, if AMEX does not pay for diminution of value?. I read from JETX and other online forums that Insurance companies need not pay for dimunition if they pay for repair and restore the vehicle to normal conditions

Thanks.

 

[seniorjudge]

Thank you senior judge.

I understand the situation of who's at fault. Could you advise me about the diminition of value issue?.
If I am at fault, my liability would have payed for the other party. However with regards to damage claims with my AMEX CDW,

Will I be held liable, if AMEX does not pay for diminution of value?. I read from JETX and other online forums that Insurance companies need not pay for dimunition if they pay for repair and restore the vehicle to normal conditions

Thanks.

Let's put it this way: You are responsible for your own actions. If you damage someone else's property, you are liable for those damages. If you can get someone else (e.g., your insurance carrier) to pay for what you did to someone else's property, then good for you. But you are still fully responsible for the whole amount (less, of course, what someone else paid for you).

I don't know anything about diminution of value.

 

[mrmass]

You better get an attorney. It seems to me that you are indeed liable for the whole amount. A relative of mine was at fault in an accident once and the other party had a brand new vehicle (only a couple of months old). He had to pay for $4000 worth of damage and over $10000 diminution of value, so your figures seem to be in the right ball park.

 

[rajjar123]

Thank you Mrmass

Thank you for your reply mrmass. I will contact an attorney right away. Also out of curiosity, one more question.

I actually checked the kelly blue book value for the car they give me at the rental location and at the time of rental, with the 12,000 miles already clocked in the retail price of the car is just $15,200. Now if the rental company claims more than what the car would be worth if not met with an accident, this seems ridiculous and like bloated price right?. I could have just bought the car from them for that price! Do you guys think the claim is right amount ?. It seems to me like the rental company bloated the prices?. Do I have a case to take it to the attorney?

Thank you once again for all your replies.