Car accident, not at fault, offenders car insurance refuses to pay storage fees for auto body

[xaustin7]

California

I was involved in an accident a few weeks back. The police and the insurance companies have all determined that I was not at fault. Last week, their insurance company (Geico) had an adjuster come out and determine whether my car was totaled. Initially he said it wasn't but he had to have a shop determine whether or not it was. Anyway, he had the car towed into a shop on June 5th, I suppose the insurance company didn't receive a "tear down estimate" until the 7th. They are now refusing to pay for the storage fees for two days prior. In addition, they valued my car around 7000 dollars (to which haven't even been able to negotiate as they didn't consider the brand new engine I have in my car) and automatically placed a salvage bid deduction of about 900 dollars. I didn't agree to salvage my car, though. Can they do this? Going back to the point about the tear down estimate, his document references
Business and Professions Code 9884.9 citing “no work shall be done and no charges shall accrue before authorization to proceed is obtained from the customer”. However, I did authorize them to take I my car, however, the code says nothing about a tear down estimate being required. Thirdly, I spoke with the adjuster for the first time today regarding this matter -- to which he called me 15 minutes before he closed, then afterward sent me emails saying that they will no longer pay for storage fees beyond June 12th. Is this even possible? If so, how?

 

[Zigner]

1: They should pay for the two days.
2: The engine doesn't increase the value of the car.
3: Tell them you don't want the car back so they shouldn't deduct the $900
4: They don't have to continue to pay for storage once they've paid you.
5: Not sure why you think 9884.9 applies in this situation.

 

[xaustin7]

I didn't say 9884.9. The adjuster cited the code and said it was the reason they don't have to pay for the 2 days. He essentially said it was illegal to charge from then to the 7th because they hadn't given the tear down estimate until the 7th. From him:
Additionally, the shop is charging storage from when the vehicle was first dropped off, but per Business and Professions Code 9884.9 it can only accrue from when a teardown estimate is provided: “no work shall be done and no charges shall accrue before authorization to proceed is obtained from the customer”.

 

[justalayman]

then afterward sent me emails saying that they will no longer pay for storage fees beyond June 12th. Is this even possible? If so, how?

Of course it is. If they have offered to settle, it is now in your hands. You can’t expect the insurance company to pay indefinitely for storage while you are making a decision. If you aren’t going to accept the current offer, tow the car to your home or a storage facility but understand that unless you have a valid argument against the offer proposed, this will all be out of your pocket.



To the $900: if you keep the car, they can charge that to you. They owe you fair market value of the car immediately prio to the accident. If they pay you that amount they are effectively purchasing the car from you. If you want the car, you have to buy it back and they charge you salvage value because that is what the car is worth to them. They get paid salvage value from salvage yards. If you don’t keep the car, they owe you fair market value of the car immediately prior to the accident.

. Fmv is based upon the actual market value of the car. A new engine actually can increase the value to some extent but it is not a lot since a car without a decently running engine is devalued. A car with a good engine is the starting point, not the other way aRound. To argue an increased value you need to prove an increased value due to the engine.


The argument about the repair shop is a separate issue. Your actions available will depend on whether you are relinquishing the car to the insurance company or not and when that happens.

 

[adjusterjack]

Zigner and Justalayman are both correct and saved me a lot of typing.

All I can add is this:

If you don't like the deal from the other driver's insurance company, make the claim on your own collision coverage and make sure your insurance company gets the car into its preferred storage facility.