by zcrane1987 » Tue Feb 17, 2009 04:02 am
Hi everyone! This looks like an amazing resource for information.
I was involved in an accident with an Allstate insured driver in Beaumont, TX, where I am on an internship away from my home in Tennessee. He was an elderly gentleman who completely misjudged my speed and pulled out in front of me. Despite slamming on my brakes, I hit him squarely on his driver's side, causing damage to both his front and rear driver's side doors.
My vehicle was totaled. The officer at the scene cited the other driver for failing to yield right-of-way, and said that he would have to undergo re-evaluation to continue to drive. Allstate has accepted 100% liability.
I have already been offered a settlement for the value of my vehicle, which I believe is fair. Allstate calculated it differently than I did, but it came out to be basically NADA, Edmunds, and Bluebook averaged + Taxes. Fine by me.
My concern is the amount of time Allstate is taking to get me into a rental. My first adjuster told me that Allstate would not authorize a rental car until fault had been determined. Reasonable enough. Waited a week and 2 days for them to accept liability, and they finally did.
My total loss adjuster told me this morning that in the case of a total loss, Allstate does not authorize rentals, but pays a loss of use instead.
I called my original adjuster back, got her voicemail (not at all unusual, and she usually does not call me back), and did not hear from her by the end of the day. I'll call again tomorrow as is the usual practice.
I have a couple of questions and a concern:
1. Which story should I believe? Should Allstate straight up rent me a car for a reasonable amount of time until I can obtain a replacement, or should I expect a loss of use settlement?
2. Is it up to me to come up with a reasonable amount in the event of a loss of use settlement? Personally, I would ask for 3 weeks of rental at the standard rate for an under 25 year-old driver (I am 21). Assuming that they do their job, this should be more than enough time to locate a vehicle.
3. If they do rent me a car and I am unhappy with the length of time they are willing to provide it for, (say they only offer 1.5 to 2 weeks), how negotiable is that deadline?
Concern:
Am I already getting the run-around? It seems to me that I should have been advised from the get-go if Allstate was not going to straight up rent me a car. If they were going to reimburse me the entire time, why not just say so, so that I can get myself a rental and not have to bum rides to work?
Thank you for your help! I have wonderful insurance back home, and have never had to claim against a large company like Allstate with such a broad range of experiences in terms of customer satisfaction.
I was involved in an accident with an Allstate insured driver in Beaumont, TX, where I am on an internship away from my home in Tennessee. He was an elderly gentleman who completely misjudged my speed and pulled out in front of me. Despite slamming on my brakes, I hit him squarely on his driver's side, causing damage to both his front and rear driver's side doors.
My vehicle was totaled. The officer at the scene cited the other driver for failing to yield right-of-way, and said that he would have to undergo re-evaluation to continue to drive. Allstate has accepted 100% liability.
I have already been offered a settlement for the value of my vehicle, which I believe is fair. Allstate calculated it differently than I did, but it came out to be basically NADA, Edmunds, and Bluebook averaged + Taxes. Fine by me.
My concern is the amount of time Allstate is taking to get me into a rental. My first adjuster told me that Allstate would not authorize a rental car until fault had been determined. Reasonable enough. Waited a week and 2 days for them to accept liability, and they finally did.
My total loss adjuster told me this morning that in the case of a total loss, Allstate does not authorize rentals, but pays a loss of use instead.
I called my original adjuster back, got her voicemail (not at all unusual, and she usually does not call me back), and did not hear from her by the end of the day. I'll call again tomorrow as is the usual practice.
I have a couple of questions and a concern:
1. Which story should I believe? Should Allstate straight up rent me a car for a reasonable amount of time until I can obtain a replacement, or should I expect a loss of use settlement?
2. Is it up to me to come up with a reasonable amount in the event of a loss of use settlement? Personally, I would ask for 3 weeks of rental at the standard rate for an under 25 year-old driver (I am 21). Assuming that they do their job, this should be more than enough time to locate a vehicle.
3. If they do rent me a car and I am unhappy with the length of time they are willing to provide it for, (say they only offer 1.5 to 2 weeks), how negotiable is that deadline?
Concern:
Am I already getting the run-around? It seems to me that I should have been advised from the get-go if Allstate was not going to straight up rent me a car. If they were going to reimburse me the entire time, why not just say so, so that I can get myself a rental and not have to bum rides to work?
Thank you for your help! I have wonderful insurance back home, and have never had to claim against a large company like Allstate with such a broad range of experiences in terms of customer satisfaction.
Posted: Tue Feb 17, 2009 10:09 am Post Subject:
Dear zcrane1987,
You've yourself stated that your car has been totaled. Am I right? Now, I'd really love to know why you're not accepting your total loss adjuster's statement for that one!
Roddick
Posted: Tue Feb 17, 2009 10:16 am Post Subject:
I guess it would depend upon the clauses of the policy. If the policy holder has the rental reimbursement you would get paid for the loss of use. However, in either way I guess you are receiving compensation for both the car and rental.
You would be required to submit the total rental bill to the insurance company in order to receive payment the loss of use.
Posted: Tue Feb 17, 2009 01:32 pm Post Subject: Rental Car
I guess it would depend upon the clauses of the policy.
No it doesnt. If the other driver is at fault his/her liability coverage is what is paying for your loss.
1. Which story should I believe? Should Allstate straight up rent me a car for a reasonable amount of time until I can obtain a replacement, or should I expect a loss of use settlement?
Its not really a question of should. A GOOD claims adjustor would have rented you a car the moment they determined liability. But they dont have to. They DO, however, have to either rent you a car or pay for loss of use. Bear in mind though that they are responsible from the date of the accident. Something you might consider (if you have full coverage) is having your insurance company rent you a car and subrogate with Allstate. They shouldnt have a problem with this since Allstate claimed 100% liability.
Posted: Tue Feb 24, 2009 06:03 pm Post Subject:
A somewhat Similar story. I was involved in an accident with an Allstate insured driver. Allstate accepted 100% liability. They are saying that they will only cover a rental vehicle at a max of $25/day. Is this normal. Shouldn't I get a vehicle of a similar class to mine (2007 Nissan Altima) and they cover the full cost?
Posted: Mon May 03, 2010 01:43 am Post Subject:
in Georgia, when liability is clear and accepted, loss of use is owed until the vehicle is driveable or until deemed a total loss. if totaled, once the offer is extended (regardless if accepted) loss of use is not owed. Keep in mind, insurance settlements are regulated per the state insurance dept so each company has to stay in compliance or be fined, or can even be sued for bad faith. Every company has settlement policies and best practices and must adhere to them for compliance and consistancy.
if the car is a total loss, its likely, rental isnt owed any longer (depending on your state), however, most companies will give you a couple days once the offer is made to make arrangements. although it's not owed, it is considered good business practice to give you a few extra days.
Posted: Mon Jan 17, 2011 03:59 am Post Subject: rental
I was rearended by an allstate driver, my car was in body shop for 21 days and I had been told that i would be refunded rental cost. My question is someone told me that even if i borrowed a car from a family member that would along with letter from auto owner would still allow for refund to equivalent rental cost. Any truth to this?
Posted: Mon Jan 17, 2011 09:40 pm Post Subject:
even if i borrowed a car from a family member that would along with letter from auto owner would still allow for refund to equivalent rental cost.
You can only make a claim for your actual expenses. If you paid nothing (other than gas and maintenance) on a loaner vehicle -- but no daily rental fee -- then you have no claim for rental reimbursement.
If you try to manufacture some sort of phony invoice for car rental expenses, you and your family member could find yourselves in trouble for insurance fraud and other offenses.
Posted: Wed Jan 19, 2011 12:39 am Post Subject:
It is my understanding that in most states, you are entitled to the loss of use of a specific vehicle that was damaged in a third party loss. I might have 100 vehicles in a private collection and have them available for use, but I would legally be entitled to the loss of use of that one vehicle that was damaged. I have seen settlements where attorneys have collected the loss of use, or difference paid for a malibu and what it would have taken to put a vehicle owner in a Escalade like they were driving where the insurer claimed they only owed minimal transportation.
Posted: Wed Jan 19, 2011 12:54 am Post Subject:
OK, I guess I think of "loss of use" as a different claim compared to rental reimbursement, but I suppose it fits in the same category. Obviously, the insurance company is going to try to minimize its claims expense by only offering to pay for an economy car.
If the OP could show that his income would be adversely affected by having to drive such a vehicle, then that's were I would see the "loss of use" claim coming in as separate damages over and above what was reimbursed for a rental vehicle..
Posted: Wed Jan 19, 2011 09:10 pm Post Subject:
Rental Reimbursment is usually 1st party claim (our insured). this is typically added to the insrd's policy as a rider on the Comp and Collision; the insured elects $20/day, $30/day, $40 day, etc...pays a small premium for the coverage. It's a separate coverage line on the policy. its usually used while the insrd vehicle is being repaired or replaced during the loss.
Loss of Use is usually 3rd party (they other guy that got rear ended by our insrd) and covered under our insrd's liabilty coverage. Can be paid for the other guys transportation by renting him a vehicle or in cash for "loss of use" of the vehicle that was damaged. If rental is elected, most companies approve a basic amount and direct bill through the rental company. if not electing rental, a cash amount of $15-20 a day can be paid directly to the other guy for his "loss of use".
Some companies' proceedures are a little different on how the view or settle loss of use. States too..keep in mind. Best to speak with the adjuster thats helping you settle the claim.
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