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Brand new car dented, insurance company wants to "total" it?!?!

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hashbr0wn

Junior Member
What is the name of your state (only U.S. law)? Oregon

Okay, I apologize if this is difficult to follow, but please bare with me.

My husband works for a company driving big crane trucks. He carpools with his co-worker "Joe".

Well, the other morning, my husbandwent to pick up Joe. He parked the work truck and forgot to set the park brake. The crane truck rolled into Joe's car, a brand new (less than a month old) Kia Sorento which Joe owes over $20,000 on. Luckily, it was just a few feet, and only the back corner panel appeared to be dented.

So, Joe and my husband go to work, speak to their superiors, file insurance claim. Mrs. Joe goes to body shop, she is assured that only the back quarter panel was dented, nothing was tweaked, frame is fine, etc. and is quoted $5,000 to fix the panel. Mrs Joe calls Mr Joe, he says it is a lot to fix just the corner panel, but whatever, insurance is covering it.

A week goes by, and today the company my husband and Joe work for calls. the insurance company is going to total the car (call it a "total loss") and cut Joe a check for $14,000. A check for $14,000, for a car he owes over $20,000, over a dented corner panel. Like I said, the car was just drove off of the floor of the showroom this month.

What is going on here? Has anyone ever heard of such a thing? They were assured the car was not damaged other than the dent, why on Earth would they "total" it? They say they are going to "write it off a s a complete loss". Is it because it is a Kia? It is in writing that it is only a $5,000 cost to fix it.

Joe just drove this car off of the lot this month, and put quite a bit down on it. Are we liable for the remaining balance Joe owes on the car?

Thanks in advance.
 
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Kiawah

Senior Member
Apparently the damage was much greater than originally thought.

How much would you be willing to pay for a used and now repaired wrecked Sorento, if you knew the amount to repair was say 14-20K dollars?

Personally, I wouldn't even consider a vehicle that has been in an accident.
 

hashbr0wn

Junior Member
Apparently the damage was much greater than originally thought.

How much would you be willing to pay for a used and now repaired wrecked Sorento, if you knew the amount to repair was say 14-20K dollars?
The amount it is costing for repairs is $5,000- no more, no less. It is in writing. The insurance company acknowledges that this is the cost in fixing the car. The $20,000 is what "Joe" owes, the $14,000 is what the company is willing to give him.

I personally would own neither a car involved in an accident, nor a Kia of any kind, new or not.



So, you don't have gap insurance on a brand new car?

Your leinholder didn't require this?
It is not MY car. It is not my husband's car. My husband was driving the company truck that rolled into the car. No, apparently, he does not have gap insurance. No idea how he got out of that.
 
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hashbr0wn

Junior Member
Your husband did not damage Joe's loan.

He damaged his car.
Could you please explain what you mean by this? I cannot tell if it is a statement trying to help me, and give me advice like this forum is for, a play on my wording, or an attempt at humor or sarcasm (both of which transfer poorly to written text). If you are just being sarcastic, could you please refrain so that I may focus my attention on those that may have actual advice for me?

Thank you.
 

ecmst12

Senior Member
The amount of the loan is irrelevent to the claim.

There is absolutely no way that the insurance company would be totalling the car and paying out 14k if there is only 5k in damage.
 

hashbr0wn

Junior Member
The amount of the loan is irrelevent to the claim.

There is absolutely no way that the insurance company would be totalling the car and paying out 14k if there is only 5k in damage.
Well, I thought the amount of the loan would be relevant because;

1) if it was a $5,000 car, then wouldn't it be worth totaling, as opposed to a $20,000+ car?

and

2) I am concerned that we may be liable for the remaining balance unpaid on the loan??
 

xylene

Senior Member
Could you please explain what you mean by this? I cannot tell if it is a statement trying to help me, and give me advice like this forum is for, a play on my wording, or an attempt at humor or sarcasm (both of which transfer poorly to written text). If you are just being sarcastic, could you please refrain so that I may focus my attention on those that may have actual advice for me?

Thank you.
There is nothing confusing intended.

Lets put it this way - if you had been a worse or better negotiator and owed less or more on his loan, that would not change what was damaged.

The car was damaged, and its value is not determined by the amount owed on the car loan.

Your husband accidentally damaged another's property.

You haven't mentioned if the crane was insured or the company...

The bottom line is if you are over your head, you probably should get a lawyer.

You are focusing on the 5 grand, which you may not even owe.

If the accident was hubbies fault, and Joe's insurer pays the claim, they will probably try to get that $14,000

I take the advice that I give very seriously.
 

I_Got_Banned

Senior Member
Well, I thought the amount of the loan would be relevant because;

1) if it was a $5,000 car, then wouldn't it be worth totaling, as opposed to a $20,000+ car?
The car is insured based on the fair market value not based on how much is owed on the loan.

2) I am concerned that we may be liable for the remaining balance unpaid on the loan??
You may not be directly liable to the finance company ("Joe" is), but you would be liable to compensate Joe up o the full market value of the vehicle minus any amount paid by the insurer (approx $6000 in this case).
 

hashbr0wn

Junior Member
You haven't mentioned if the crane was insured or the company...
Both are insured. It is a reasonably sized company (300 people?). They own the crane truck, and the truck is insured. I am sure they are also insured.


The bottom line is if you are over your head, you probably should get a lawyer.

You are focusing on the 5 grand, which you may not even owe.
I'm sorry if I haven't made it clear, the $5,00 is not my concern, the concern will be my husband's co-worker and their family being out of a vehicle, and them (or possibly US) being out the remaining balance on the loan. I have never been in an accident, or had any trouble with cars/insurance claims, so I am close to being clueless. I know if it was a car worth $4,000, and the damage was $5,000, it would be a "total loss". I do not understand how a car worth presumably more than $14,000 would be a "total loss", but then again, it is a Kia (to my understanding a disposable car).

I don't know if we are "over our heads". I don't know if we are liable for the remaining balance on the loan, once the $14,00 is paid out. As for retaining a lawyer, absolutely not in our budget.


You may not be directly liable to the finance company ("Joe" is), but you would be liable to compensate Joe up o the full market value of the vehicle minus any amount paid by the insurer (approx $6000 in this case).
Thank you, I_Got_Banned, this is the answer I am looking for, whether or not we will be liable for this amount. I just spoke to my husband, and the amount may be closer to $10,000 (the difference between $14,000- which I presume must be the value of the dented Kia- and the amount of the loan "Joe" took out on the car).

Thank you everyone who has given me advice, I welcome any further input anyone has to put it.
 

ajkroy

Member
Both are insured. It is a reasonably sized company (300 people?). They own the crane truck, and the truck is insured. I am sure they are also insured.




I'm sorry if I haven't made it clear, the $5,00 is not my concern, the concern will be my husband's co-worker and their family being out of a vehicle, and them (or possibly US) being out the remaining balance on the loan. I have never been in an accident, or had any trouble with cars/insurance claims, so I am close to being clueless. I know if it was a car worth $4,000, and the damage was $5,000, it would be a "total loss". I do not understand how a car worth presumably more than $14,000 would be a "total loss", but then again, it is a Kia (to my understanding a disposable car).

I don't know if we are "over our heads". I don't know if we are liable for the remaining balance on the loan, once the $14,00 is paid out. As for retaining a lawyer, absolutely not in our budget.




Thank you, I_Got_Banned, this is the answer I am looking for, whether or not we will be liable for this amount. I just spoke to my husband, and the amount may be closer to $10,000 (the difference between $14,000- which I presume must be the value of the dented Kia- and the amount of the loan "Joe" took out on the car).

Thank you everyone who has given me advice, I welcome any further input anyone has to put it.
You keep bashing Kia, and I have no idea why. ALL cars lose significant value after they are driven off the lot. Whether you prefer domestically-designed vehicles (which seems apparent, and again, I have no idea why) or not, this fact does not change.

The car was worth less the day after Joe purchased it than it was on the lot. The amount of his loan is irrelevant.
 

ecmst12

Senior Member
You are NOT liable for the balance on the loan, regardless. If the car is totalled, then whatever insurance company is covering your husband for this accident will pay out the fair market value of the vehicle, which I would readily believe is $14k.

And if they are paying out more then $5k, you can be certain it is because additional damage was found after they started taking it apart which would amount to more then the value of the vehicle to repair. Insurance companies do not stay in business by paying out $14k when they only owe $5k.
 

justalayman

Senior Member
so, this was your husbands fault. He is liable for the amount of damages and any diminuation of value he caused regardless what anybody else does. I would suggest getting a copy of the estimate and if you can, a letter from the body shop that started the repair, stating that there was only $5k of damage, even after repair was started.. That is what you would use to defend any claim against your husband for more than $5k of physical damages.



as the others have said, it makes no sense an insurance company would pay the guy $14k with $5k of damages.
 
W

Willlyjo

Guest
Sometimes an insurance company is willing to sell a car that has been "totalled" by them.

Maybe the car could be bought for a couple grand. Then take the 14,000.00 and pay the body shop that made the 5000.00 estimate. This would leave you 9,000.00 left.

Pay the 9K toward the 20K you owe and your balance would be 11K. So now you have a repaired car that probably drives and looks as good as new with a balance of 11K instead of 20K.

Negotiating with the insurance company is worth a try! I know of a few people that did this.
 

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