My new car was demolished in an accident that was somceone else’s fault, I only owned the car for three months will I get back what I paid for it three months ago?

Will I be reimburse for taxes, tags and title fees that I paid when I bought the car three months ago?

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I am sorry for your loss, it is tough when you don't get to own the car long enough to even get a chance to enjoy it. Your insurer most likely uses what is called the "Blue Book" value to determine what your car is worth. The price that you paid three months ago most likely is higher than what the Blue Book will allow, since the car starts depreciating in value almost the minute that you drive it off the lot. They will factor in wear and tear, ( dings, dents and normal wear of parts) and depreciation when they offer your settlement sum. Do not expect to get reimbursed for your tags and fees; Those things are like gas to insurance companies, you need it to drive, but it's not a part of the actual value of the car. If they do not give you what you want, you can always appeal the settlement, sometimes the company will give in and pay. I'd hope so, in your case. Good luck, and thanks for asking!
    Answered on July 1, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    Sad to say, you probably will not if the settlement is handled by the other company.  A car depreciates in value quite a bit as soon as it leaves the lot and the insurance company will settle the loss based upon the depreciated value in most cases.  Now, if you happen to have coverage in your own policy that provides for a brand new car replacement, it is best to talk to your Insurance Professional about your options. Some companies even offer a deductible advance so that you would be much better off in a situation like I have just described letting your own company handle the settlement for you and then go after the other guy's insurance company for reimbursement in a subrogation proceeding.
    Answered on July 2, 2014
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  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The other driver’s insurance will indemnify you for your loss to the extent of coverage of the other driver’s policy. If they have a $25,000 property damage limit and your car is worth $50,000 your recovery will be difficult. Your underinsured motorist limit will then become a major player. Under the best circumstances the adjuster will have to make you happy. You could file a lawsuit and you might prevail. Insurance companies do not enjoy being sued.
    Answered on September 12, 2014
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