My friend was in a car accident (it was her fault), but her insurance only covered her (Don’t ask why cuz I dont know why the heck she got suckered into buying insurance that only covers her). The lady who she hit called her own insurance company and they made a plan to have my friend pay them 2000.00 to cover…
Is she in NJ? Several years ago NJ came up with a policy that was PIP & physical damage but no liability. I don’t personally know any agent that would sell it, I sure wouldn’t have (I left NJ before this policy came out).
Anyway, if she is at fault, she is liable for any property damages (the car) and reasonable rental while the car is being repaired and bodily injury (per laws of her state). Reasonable is the amount of time it should take to repair & the other party can rent a car of like kind. If the other party has a Lexus SUV, she doesn’t need to rent a Lexus, she can probably rent a Toyota SUV of the same size much cheaper. With only $2,000 damages, the car should be drivable (depending on where the damage is) & should not take long to fix. Rental of $1,000 sounds excessive for only $2,000 damages. If I were her I would call the other insurance company & say she is willing to pay “reasonable” rental charges & request a copy of the payment breakdown of the rental, including the vehicle rented. I would also want proof of the time the damaged vehicle was in the shop. She may be able to get that down if the rental time was excessive or the vehicle was high end that was not needed.
I hope she has now purchased a policy with liability coverages.
YOur frined needs to contact an attorney and ask what to do. You friend is absolutely responsible for the damages to this womans car, and before she signed she should have made sure and gotten an estimate of cost of damages. Even a couple of them. Cause she should have made sure what exactly the 2000.00 was covering. She needs to get a compy of the bill for those damages and if it was under 2000.00 then the woman should use the remainder for her car rental. However, Your friend should NOT sign a new contract. They already had an agreement and they can not go and change this agreement after the fact. They should have figured this amount of car rental in the first one, they did not ,so Your friend should not have to cover costs after the fact of when the ariginal agreement was made. Also, it shouldn’t cost 1000.00 to rent a car. How long was her car in the shop? I mean did they even send proof of the cost of the rental, or is this just an amount they came up with? If it were me, I would have agreed to pay for 1 week worth of rental car and no more, but that would have had to of benin the original contract. If it was not and then they sent me a bill and wanted me to sighn a new contract, they could forget it. Sorry no can do. They would have to take my *** to small claims court. I mean what’s next? Are they going to decide in a few months that they got whip lash from the accident and go after her again?
sounds like your friend has an issue.
I don’t believe there is any insurance in the country that ONLY covers the driver?
I believe all states have financial responsibility laws that require people to purchase at least a state minimum.
So……. something’s up there.
Now – if she was at fault and did not have insurance – she would be responsible for 100% of the damages she caused. The “contract” she signed is kinda like a promissory note. If she fails to pay – they can take her to court, get a lien, try to have her wages garnished in some states…….so, paying SOMETHING is better than paying nothing.
The rental is negotiable and the insurance company would have to provide documentation to support whatever it is that they want her to agree to. Just because someone got in a rental does not mean they needed it to start with and/or that they needed it for as long as they are charging. Did that person get in a Hummer? Did they get a better car than they were entitled to? Those are things that your friend should inquire about. If she sounds like she knows what she is talking about she might be able make out better.
Contracts can have amendments.
Okay first of all, insurance that covers damages YOU cause to others is called Liability bodily injury and property damage. It is required by every state and if your friend in fact had insurance, she would have this coverage. If she has insurance she should not have to pay a dime to this other company.
If she doesn’t have insurance, she probably will have to pay for the damages out of pocket. However, she can fight the rental car charges. $1,000 is pretty steep for rental car charges.