What are the limits of what an insurance company pays when a car is totaled?
Question Details: My car was sitting in driveway, not running. A car that was driving by had a wheel come off and strike my car. The insurance company says that my car is totaled and is offering an amount $2500 less than the blue book value. They say the driver's policy only pays up to $5000 for this type of accident. Is this right? Do I just have to eat the big loss of value?
When a car is totaled, the insurance company will never pay blue book value. Totaled to an insurance company means that the cost of repairs is more than the value of the car even if the car does not have major damage.
The policy limit of $5000 is the maximum the insurance could pay.
When settlement offers are unsatisfactory, your only recourse is to reject the settlement offers and file a lawsuit for negligence against the at-fault party. If the tire fell off because of negligence by a tire store, you would name that store in addition to the driver as defendants in your lawsuit for negligence.