Need advice on auto insurance claim

[PandaBear]

A friend of mine got into a car accident in Jan (bad weather according to him, spun out and hit a divider), totaled his Camry and bought a $5500 Accord with only liability insurance.

He crashed it as someone come out of an intersection and blocking his way. I ended up picking him up from the tow yard where his car was towed to and drop him off at a rental car place. The next morning we talked about this, he was shell shocked about someone injured in the other car, and a car that tailgated my friend end up being a "witness" saying my friend as recklessly speeding (in retaliation of my friend passing her).

The cop arrived and checked out everyone. Other than some shoulder pain and shell shocked, the other car's driver and passenger seems ok. My friend is a poor student working and studying part time anyways so there's no money in suing him. So he is at least lucky on that.

However, I STUPIDLY gave my friend the advice of selling the car right away because I trust my friend that claimed 1) the car is totaled (air bag deployed, radiator busted, head light not pointing forward, hood bent, on a 5500 car) so it is better to sell it early to avoid yard fee, 2) my friend was shaken due to a recent accident and thinks he is "at fault" because of the "witness". 3) The car is in the middle of nowhere and he was traveling from San Francisco to San Diego (9 hour drive) weekly between work and school so he couldn't just stay in a rural town in the middle, and he would have no way to pick it up, tow, or park the car elsewhere economically (assume it is likely declared total).

He sold it that morning on craigslist for $950, for a car the he bought $5500 4 months ago with 170k and excellent condition (slightly above blue book). The buyer "promise" to keep the car that way until the claim adjuster visit. Buyer had one driver license name and address but register the car in DMV under another name and address.

The horror begins today when my friend told me "never to tell people to sell the car after the accident". He said the other party's insurance co refuse to pay / claim responsibility due to unable to visit the car and the buyer refuse to answer calls after saying the car is parked at a "cousin".

I felt bad about giving him that advice, and want to help as much as possible. My friend told me the addresses of the buyer's driver license and the DMV reg of the car purchase, but warn me "not to go alone" because they seems to be passive aggressive.

One of my insurance industry friend (commercial, not auto) told us to tell the other party's insurance co to contact them directly and "let the pro do the work" first. Any other things we should or should do? I should have asked first, but things happened so suddenly and it was just, crazy.

 

[Garak]

Well, no good deed goes unpunished. Actually, I'm surprised that one would be able to sell a vehicle in such a scenario down there. Here, if the vehicle had to be towed from the scene, much less totalled, selling it would be an extremely difficult proposition. The insurer is also the registrar, so they know exactly what's going on. Even if it were sold, theoretically blocking access to the registrar/insurer would be extremely difficult at the minimum, and asking for serious trouble at worst.

Basically, your friend in the industry is right. Let the insurance people do their jobs. They're more likely to be able to get information exchanged in a timely and peaceful manner.

 

[DuckRyder]

I don't suppose anyone took pictures?

You should engage someone familiar with (and licensed in) California law on the matter and perhaps the insurance commissioner, but in general:

It is the duty of the person making the claim (that would be your friend) to prove the loss. Proving the loss includes making the damaged property available for inspection.

NEVER sell damaged property involved in an insurance claim prior to an inspection.

Selling a totaled car with a clear title could be an issue too in some jurisdictions...

You can try having the insurance company contact the party directly perhaps they will respond differently to a more "official" request...

The reality is probably that this was about a $4550.00 +/- piece of bad advice, assuming the liability is clear.

 

[HerrStig]

There is a profession called "attorney at law" but "everybody" thinks "all you need is a little common sense" Now it'll take half a dozen to untangle this mess.

 

[rjundi]

That sucks, the downside of being a cheapskate and giving out your thinking to others. Not saying being cheap is bad thing but sometimes the pennywise pound foolish comes out too.

Typically if a vehicle is totalled the insurance company takes ownership of vehicle and you get your check. You have the oppurtunity of buying back at salvage value (eg $1000) if you want it.

Try and locate the vehicle yourself. Not sure if anything else can be done unless your friend sold it had a condition on his bill of sale about showing the car after.

 

[KD0AXS]

Sounds like it doesn't much matter to me. If there's a witness saying your friend was driving recklessly and speeding, he's going to be found at fault and not get paid anyway.

However, if he wanted to attempt to make a claim, he should have kept the car. You can't make a claim on something you don't own.

 

[Cutehumor]

sounds like your friend might get sued because the other party might not get paid for their car accident/injuries if they can look at his car to prove who is at fault. the car he hit might just had liability too

 

[DuckRyder]

Originally Posted By: KD0AXS
...You can't make a claim on something you don't own...

If you owned it at the time of the loss, you probably can (technically), the issue is establishing the amount of the loss... (again... if liability is clear...).

In practice
Quote:
if he wanted to attempt to make a claim, he should have kept the car.
is good excellent advice.

In the case of a vehicle it is rather common for states to have laws that say a claim cannot be paid without ensuring that the title is properly branded, which is going to be impossible in this case I expect.

This is a mess and unless there is some odd law in CA or someone has some evidence (pictures, estimates, a police report stating the other party is at fault) I expect the friend is out of luck.

 

[Barkleymut]

Can you just call the buyer and explain the situation? Tell him you will give him $100 if he cooperates with the insurance representative who will be sent to view the car.

 

[AandPDan]

Stay out of it. The damage is done. Let the insurance company handle it. Don't visit the house or even drive by.

It's not your problem.

 

[AandPDan]

Stay out of it. The damage is done. Let the insurance company handle it. Don't visit the house or even drive by.

It's not your problem.

 

[Kuato]

Hmmph, why anyone would sell a wrecked car before the insurance company looks at it is beyond me. One call to his insurance company and they would have told him to leave it in the body shop's lot, and if the other driver was at fault, that the other company would be paying for any tow/impound fees. He might just have to suck it up and keep his $950.

Since he had liability only, his insurance company may not pursue the other company, because his insurance company has no financial interest in the vehicle. If they are nice they will help.

That being said, the other person's insurance company has no time to go chasing the vehicle all over creation. Once liability is determined they do have a responsibility to pay, but unless they can see the vehicle they cannot do any estimate.

This should be turned over to an attorney, if his own insurance won't pursue it and the vehicle can't be located within a week or so by the other insurance company.

I would suggest to him to call the buyer of the vehicle if he hasn't already, and try to coordinate. Some people refuse to call insurance companies back, ever. Maybe if the guy that sold him the car calls, the new owner will be more likely to agree to show the car.

*shakes head*

 

[Rock_Hudstone]

Rest assured, even if the insurance pays a claim they would massively low ball the value of a 170,000 mile vehicle regardless of what your friend paid for it.