I just got in a car crash. Can you help me?

[smilo87]

I don't know if this is the right place to put this, but it says "general discussion"... and I really need a little advice here, because I'm flying blind.

A week ago, I bought a new insurance policy on my car (I had moved states and needed the new state's insurance). I put a large down payment so I wouldn't have to pay as much in finance fees. I did not have comprehensive insurance, only liability.

The next day, I got in a car crash. The car (which was worth ~$3,000-4,000) is totaled. The insurance company will likely say it is my fault, so I won't get anything.

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I can survive without a car, but it feels like I can't. I have gone through nights of tears and frustration and struggles, but right now I'm just trying to get logical. I need to figure out what to do next. I can survive without a car, but I will make less money from the tutoring job I do because I will be able to see fewer clients traveling by bus (money is very much an issue); only be able to go to my internship once a week (this internship is the only thing I've got toward the career I'm hoping to find); and without a car I will not be able to be hired in an entry-level position in the career I'm looking for (film/TV producing - I'm looking for PA and and assistant jobs).

These are my options if I want a car (and I very much do):

A) Get the mechanic to make the car driveable, and keep my current insurance. EDIT: I just got an estimate -- this should be $2,850.

B) Junk the current car and buy another one. I then have to get the new one registered, taxed, and insured, which are additional fees on top of the actual cost of the car.

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My main question is about the feasibility of option B, because depending on the price of the estimate, it might be my only option. In particular, I want to know --

1) Is it generally possible to switch the insurance from one car to another? As in, if I buy another car, can I get the original car off the insurance and put the new one on?

[I already put a big down payment on the insurance, and I assume it's impossible to cancel it at this point. But I really know nothing about canceling insurance or anything with regard to this topic.]

2) If I can't afford either option A or B, and I have to be carless for now, what do I do about insurance? Can I cancel the car insurance I have, so that I don't have to pay for what I'm not using?

[The down payment is currently on my credit card bill; I assume there's no way whatsoever to get that money back -- I paid it because I assumed I'd be paying for this insurance for the whole year.]

3) Any other advice or thoughts about choosing option A or B?

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I've been through a lot of crap in my life -- depression, homophobic parents, etc. I'm doing fantastically better since I came out about a year and a half ago. But this is a major setback, and I'm more or less broke poor because of this looming expense. [I have about $3,500, minus $1,000 on this month's credit card statement, minus whatever I spend on this car problem. Basically all of the credit card bill is the insurance; I always try to pay off my balance each month, and would like to do that this month as well if possible.] Anyone who has any advice or help (or maybe a super-cheap and still-reliable point-A-to-point-B car in the Los Angeles area?!), it would be very much appreciated.

 

[opinterph]

The insurance company will likely say it is my fault

Fault is determined by the court system – not the insurance company.

Is it generally possible to switch the insurance from one car to another?

Yes, it is an easy process unless the insurer cancels your coverage because of the accident.

[I already put a big down payment on the insurance, and I assume it's impossible to cancel it at this point. But I really know nothing about canceling insurance or anything with regard to this topic.]

You will be eligible for a partial refund, should you cancel your coverage. The amount of the refund is not affected by the amount you’ve already paid, but is based on the total amount of premiums you were scheduled to pay during the policy period. Because you paid a substantial down payment, you should have a surplus value that is eligible for refund.

Can I cancel the car insurance I have, so that I don't have to pay for what I'm not using?

Yes, but doing so could adversely affect your eligibility for continuing coverage. Underwriters would probably frown on a cancellation immediately after a claim on a new policy. If your agent is honest and trustworthy, he/she should be able to advise you more about that option.

 

[JayQueer]

I've been through a lot of crap in my life -- depression, homophobic parents, etc. I'm doing fantastically better since I came out about a year and a half ago. But this is a major setback, and I'm more or less broke poor because of this looming expense. [I have about $3,500, minus $1,000 on this month's credit card statement, minus whatever I spend on this car problem. Basically all of the credit card bill is the insurance; I always try to pay off my balance each month, and would like to do that this month as well if possible.] Anyone who has any advice or help (or maybe a super-cheap and still-reliable point-A-to-point-B car in the Los Angeles area?!), it would be very much appreciated.

I'm very sorry to hear about your predicament. Yes, in the Los Angeles area, having a car is pretty much a requirement because the public transportation is inefficient.

If the car was totaled (and it was worth $3000 to $4000) can you use the insurance money toward the purchase price of the new car?

Check out www.autotrader.com for good deals. I would recommend buying a reliable car over something more flashy. You should be able to find a late model Honda, Toyota, or Nissan in that price range.

 

[AndrewC88]

OMG are you from California Bay Area?

Doubt it. I was in a car crash last sunday (concussion and multiple smalls cut and a large laceration on my back from the glass) some douche rear ended us. It sucks. I hope every thing works out for you

 

[FPNY]

I would junk the wrecked car and get a good used car. Your car will probably never be the same. Your insurance company should insure your new car on the policy you already paid on. Just call them. If you decide to go careless they should refund your police less what you have used already, pro rate it and pay you back the difference. These things are never easy, make the choices that will help you be as successful as you can be.....

 

[looseliam]

Though opinterph is correct that a court will determine fault, some states allow percentage-based blame to be assigned by the insurance companies.

You can easily remove one car and add another.

As for repairing the car, there's always other options. I would hunt around to see what others may quote for repairs. Some insurance companies have contracts/agreements with some body shops that provide their clients better rates.

It is entirely none of my business, but I find $1000 for liability insurance to be a bit steep, let alone just a down payment as you've said.

How did the accident happen? How did the cars hit? What were the weather conditions? I may be able to give you an idea of how things may pan-out.

As for a worst-case-scenario of receiving no money, I would recommend finding another used car versus repairing the old one. One can find reliable transportation for less than the cost of repair.

 

[jonboy1645]

1) It is a simple phone call to get your insurance switched. I bought a car last week, dialed up Travelers, told them traded in the blue car, bought a new silver one, and it was done in less than 5 min. (they need more details, but you get the idea)
2)You can cancel insurance too. This one might be a little tougher as you might need a certification the car is totaled. Or if you are selling it to a junkyard, a copy of the title signed over .. . Just call them up, and you will get a refund of the insurance you no longer need.

A) If you pay $2850 to get it fixed, and have a $3000 dollar car (that has had massive work done on it) - you are no further ahead. Not worth it based on the numbers presented in my opinion

B) A different car might have a better history to it, and you could take time to find a value. You could end up with more car for the money spent. Also, the price of scrap metal is high - a junk car has value $200 - $300 or so minimum, it's based on weight. (I typed 1973 Ford Pinto into junkmycar.com as an example, and it offered be $310) So the proceeds from the sale could off set some of the fees for the new car.

 

[smilo87]

Thank you everyone for your advice. I've bolded my follow-up questions. [I need to make a decision soon, ie possibly tonight -- because soon the body shop will start charging storage fees.]

The accident was as follows: I was turning onto a small street, for which I had a stop sign, onto a large street, for which the traffic had neither a stop sign nor a stop light. I stopped at my stop sign and then proceeded forward and didn't see the car speeding from the right. I hit their side.

Unfortunately, I have no way to prove that they were speeding, though they almost certainly were. There were no witnesses. (Just to begin with, aside from me seeing how fast they went, I accused and accused the other party of speeding, and they did not say a word to deny it. I also accused them, at the first second, of running a stop sign, because I had a stop sign and thought they would, too -- and they rushed to point out immediately that they did not actually have a stop sign. I think that if they were not speeding, they would have denied doing so.)

The fact that I had a stop sign, even though I stopped at it, means that they had the right of way. I think I have little chance of getting the fault on them. Perhaps it could become 50/50?

The damage to my car was as follows: one headlight was destroyed, the bumper came off, and the frame behind the bumper was very much damaged. Aside from that, though, the car seems to drive fine -- I drove it from the accident home and then to the body shop in the morning.

A) If you pay $2850 to get it fixed, and have a $3000 dollar car (that has had massive work done on it) - you are no further ahead. Not worth it based on the numbers presented in my opinion

B) A different car might have a better history to it, and you could take time to find a value. You could end up with more car for the money spent. Also, the price of scrap metal is high - a junk car has value $200 - $300 or so minimum, it's based on weight. (I typed 1973 Ford Pinto into junkmycar.com as an example, and it offered be $310) So the proceeds from the sale could off set some of the fees for the new car.

Because it seemed to drive fine, I think I'm thinking of staying with the car. $2850 vs $3000 isn't any further ahead, but it isn't any further behind, either. A different car might have a better history to it -- but let's face it, the chance that a ~$3000 car could have a worse history to it are very much non-zero. It's a known risk, not an unknown one, right?

On top of that, buying a new car means paying new taxes and registration fees. I think that probably balances out, more or less, the money I would get from junking it.

Multiple people are recommending I junk the car and buy another, but I'm strongly leaning towards keeping it for $2850. Can I really buy a reliable car for $2850? My car's bumper is wrecked, but the inside looks fine (to my untrained eye), and it didn't make any sounds (except for the left turn signal, from the headlight) when driving it away from the wreck. Keeping the car would mean less hassle (consider: junking, long buying process, possibly getting a mechanic to check up on possible used cars, registering "new" car, insuring "new" car, all the while still concerned that the engine of this "new" car could be crap and I bought a lemon). The fact that everyone seems to recommend me scrapping this car is the only thing holding me back from being sure to keep it. (I need to make a decision soon, ie possibly tonight -- soon the body shop will start charging storage fees.) Tell me: am I insane if I keep the damaged car after $2850 in repairs?

OMG are you from California Bay Area?

Lol, no. Midwest.

Fault is determined by the court system – not the insurance company.

So how does that work? I have submitted my claim, the other party has submitted their claim -- how is it determined whether or not I would get reimbursement? Do I need to get a lawyer? Would this possibly be cost-effective?

It is entirely none of my business, but I find $1000 for liability insurance to be a bit steep, let alone just a down payment as you've said.

I'm a 24-year-old male who has had a driving history of less than two years. This is a 12-month policy. Yes, it is a lot of money for insurance, but I don't think I was scammed. I should try e-surance, someone recommended.

One last question for the crowd: If I switch to e-surance or some other dirt-cheap insurance, can I get pro-rated reimbursement from the original company?

 

[voyager1994]

Sorry to hear all your troubles.

Just keep in mind that fixing a (very?) old car after it has been involved in serious accident doesn't necessarily mean that it's back in good driving condition. True, it's probably cheaper and less hassle NOW to just have it fixed instead of getting another car. Sometimes pursuing a longer term solution is more cost effective and logical thing to do. Anyway, you drive this car so you should be able to gauge whether it's still wise to keep using it.

Good luck, hope things turn out well.

 

[smilo87]

I don't do all that many hours, but I average about $500 or $600 a week. The mechanic says there won't be any unsightliness to the car after he fixes it. Aside from the bumper and the frame behind the bumper, there is almost nothing really (visually) wrong with it.

 

[looseliam]

There's no need to get a lawyer. You may have to make an appearance in-court, but most time the other party doesn't show and the case is dismissed.

As for fault, it is most likely that the insurance companies will determine you are at-fault. However, if the other party doesn't show and the case is dismissed, one can argue that there's no standing for the other party involved to go after you. This is all usually done by the insurance companies, so you shouldn't really have to do anything.

Also, $80/mo isn't that bad. I still recommend price-shopping, though (that's just who I am.)

Speaking of prices, please please please get a second bid for the body work, if you can. Without seeing the estimate I don't know what else the body shop saw, but I know I could replace bumpers on BMWs for $700 all day long.

 

[thewiz]

My first question is whether a police report was filed or investigated? The police, on an accident report, will normally indicate which driver was at fault. If a vehicle is speeding, they forfeit the right-of-way they enjoy. If they weren't speeding, you would likely be shown to be at fault because one has to stop and then start safely from a stop sign; not much wiggle room. Assuming someone else has a stop sign won't get it either.

As to insurance: you can add or drop cars from your insurance but they may ask that you show some proof. In DC, when we purchase our new car and I still was carrying my old one until I sold it -- the insurance at first gave me a little flack about taking it off the policy. The reason was that you have to send old plates back to the city or else if they are used by anyone else -- it can come back on the owner. The rule was archaic but my insurance rightly pointed it out.

If all that was damaged was a bumper and the car drives okay, I'd get a second opinion on the damage. You may be able to get "seconds" parts or just have some body work done at less price.