Hi, I’m in an unfortunate situation and I need advice. I started leasing a car 10 months ago, with full intent to buy from the start I even told the guy at the dealership that. I put an exhaust on this car one week in, and over the months $6,000 in modifications. I got into an accident, wasn’t my fault whatsoever its stated in the police report & everything. I put $3.5k down on this car, and paid fees… etc. and I think that the insurance is only going to pay me for some of my modifications and then just to end my lease which doesn’t seem legally fair to me considering I was not at fault. I now have to pay all those fees again etc to get into a new car. Again, you can’t modify your vehicle it’s in the lease contract. I had full intent of purchasing. I feel like I should be compensated for some losses. (Car is totaled btw)
What can I do in this situation? Do I just go after the at fault driver’s insurance?
Intent unfortunately is irrelevant when you enter a contractual agreement. Typically the fault of the accident is irrelevant, in this case, as well. I’m actually surprised that the insurance is paying for any of the modifications.
The insurance company’s responsibility is to make you whole again after the accident. If that amount is over your payoff you will see a check (note- this also depends on the leasing company as they may keep overages as noted in several posts here). If it is not you probably have a gap insurance plan that came with the lease to payoff any shortages. Other than that you are on your own.
If you have not done this yet look for similar vehicles for sale in your area. The settlement should be enough to buy a very similar vehicle. The other route some adjusters will go with is MSRP- less current rebates- less miles used. Just know the first offer is not the only offer. It may take some work, but you could potentially come out a little ahead.
Does this also include sales taxes and reg fees etc?
Suppose I buy a car with cash for 20k. Taxes and fees, total OTD is $23k. I drive 10 mins later, someone totals it? Would that insurance pay me $23k, as the cost to make me whole again, or would they pay me $19k in case since now that is the market value of the car?
It depends. I had a customer recently drive over something small on a highway, i.e. couldn’t see it, and there was significant undercarriage damage to his M3. The estimate to total it did include sales tax. They pegged a $79,000-ish M3 base at $95,000 after taxes.
Where I live you would get the cost of the car plus TT&L (you should be able to take your settlement and replace the vehicle). This could be different in other areas with different laws/customs.
Your insurance company should already be in contact with their insurance (assuming it is a different company) to get the damage settled. If you want any further help in terms of compensation, you should contact a lawyer in your area and not contact the insurance company anymore. I also assume your neck and back are pretty stiff after an accident that totals your car.
Whether you own it or not is irrelevant to the modifications. The insurance is not going to pay for them unless you select that coverage, assuming they offer it. He would be out $6k for them if he had the title or the bank did. His only chance of getting anything extra is having a lawyer sue to offending party or their insurance.
Many years ago I represented my wife twice in lawsuits after she was rear ended and had back and neck pain. The first time she was treated by a chiropractor, and we got almost nothing in settlement. The second time she went to an MD, who sent her to physical therapy. I negotiated a 25k settlement in that case for her medical issues.
