total loss vehicle owned by bank and insurance will not pay

Posted: Thu Feb 10, 2011 12:18 pm Post Subject:

If the friend would've been listed then he would've been covered. You should also get it inspected before you get it repaired. Just don't ignore the risk of driving a vehicle with a salvage title.

Posted: Fri Feb 11, 2011 07:42 am Post Subject:

"implied permission"???? did you mean to say "implied resident"?

as far as denying your claim, I don't see where permission would have anything to do with it. I think it has to do with residence.

sounds to me like they suspect that your friend is actually your roommate (which if it were true,would be bad news for you). I have 2 questions:

1. does the fine print in your contract say that someone with direct access to your home is considered a resident?

2. can your friend show documentation to prove that he lives at another address? (i.e. mortgage/lease agreement, utility bills in his name)

if you answered no to the first question AND yes to the second question, then I would challenge this claim denial.

Posted: Fri Feb 11, 2011 09:53 am Post Subject:

lylesinsurance has some good question for you. Try and answer them as soon as you can.

Posted: Fri Feb 11, 2011 11:55 pm Post Subject:

My vehicle was taken without my permission by a friend of mine and became involved in accident (at fault). Friend does not live at my residence but has direct access...for this specific technicality insurance calls it implied permission so they are not going to pay me nor my lienholder any amount even though I had full coverage insurance on the car. They declare it a total loss because it is worth 10K and will cost 12K to repair the vehicle. I owned vehicle for 2 months and owe 8K to the bank. I have a friend who can repair it under 6K but not sure what to do next. Should I call back insurance adjuster or talk to bank? Please advise.

Posted: Sat Feb 12, 2011 04:02 am Post Subject:

While Lyle's questions are good ones, Trench is correct. If the use is not permissive, then your insurance will not apply. Whether the person had access to the vehicle or not is pretty much immaterial. A thief can have access to the vehicle, the keys can be in the ignition and the engine running, and the stolen vehicle will still not be covered by your insurance.

The bank could care less about helping you, they only care about getting their money.

If the vehicle can be repaired for $6,000 or less and the insurance company is calling it a total loss, you can buy the vehicle from them for the salvage value, whatever that might be, and they will deduct that amount from the loss payable. You may or may not end up with the $6000 needed to repair the vehicle, then what? In the meantime, you still have a car payment to make.

If they are willing to pay $10,000, and you owe $8,000, then you will have $2,000 for a down payment on another vehicle. Or bus fare for a couple of years, during which time you might be able to save cash to buy another car with little or no monthly payments. Inconvenient, perhaps, but a possibility.

The choice is yours. Find out what the insurance company has determined the salvage value is and see how the numbers work out. You are not without options.

And you can always SUE YOUR FRIEND. That's one way to get rid of a friend who helped you out like this.

Trench asks,

Does your friend have insurance?

Posted: Sun Feb 13, 2011 05:00 am Post Subject:

perhaps you are filing a claim under the wrong area (collision instead of comp). if you gave permission, that would be a collision claim. but if you did not give permission as you say, that would be a comp claim (theft is covered by comprehensive)