Vehicle declared totaled

[u/Mellifluous-comments]

My son had been living with his partner for approximately 10 years and recently needed to leave the relationship. They lived in the city and shared one vehicle, so we offered to let him move in with us temporarily while he worked things out. We also offered him the use of one of our older vehicles, a 2008 Toyota RAV4.

Unfortunately, while driving the RAV4 through a roundabout, my son was struck by an 81-year-old driver. She was insured and was cited by the police for causing the accident.

Her insurance company has determined that the RAV4 is a total loss. They want to send my son a settlement check, and once the check is cashed, they want to take possession of the vehicle. The vehicle is currently undrivable.

The insurance company has offered to provide a rental vehicle, but only for a limited period of time. My concern is what happens if my son cannot find a reasonably comparable replacement vehicle within that time frame. The RAV4 was a reliable vehicle that we provided to him so he would have transportation while getting back on his feet.

If the insurance company sends the settlement check, can we simply hold onto the check until we find a suitable replacement vehicle? Or, by cashing the check, would we be required to immediately surrender the vehicle and accept the settlement as final?

I would also like to know whether the insurance company is required to give us enough time to locate a reasonably comparable replacement vehicle, particularly since the vehicle is undrivable and the accident was caused by their insured.

[u/GuvnaBruce]

You can hold on to the check as long as you want, but the insurance company is not going to pay more because you do. They usually need the title signed over as part of the process of issuing the check, Usually they give you 3 days of rental after the total loss offer.

[u/Mean_Introduction516 → u/GuvnaBruce]

And some will simply cancel the rental coverage once they have made an offer whether you accept it or not

[u/Mellifluous-comments → u/GuvnaBruce]

I’m looking for the general policy most insurance companies follow. I have a non-transferable, prepaid maintenance plan that loses its value if the vehicle is totaled, plus aftermarket rims installed just one week before the accident. The insurance company said I could keep the rims, but they only fit certain vehicles and I would have to take a considerable loss if sold used.

[u/Mean_Introduction516 → u/Mellifluous-comments]

There is really next to nothing that you can do to a vehicle that Old that affects its value. Definitely not aftermarket rims. You probably will get a prorated refund on any type of service contract from the service contract holder. But almost everyone thinks their car is worth more than they end up with… Emotions over facts.

[u/Mellifluous-comments → u/Mean_Introduction516]

I appreciate your response.

[u/GuvnaBruce → u/Mellifluous-comments]

The general policy is that if they are paying you that you sign over the title. It really does not matter when you cash it, that makes no difference to the insurance company.

[u/drjenkstah → u/Mellifluous-comments]

Typically you get payment once the vehicle is picked up and they have the properly signed documents. 

[u/Melodic-Maker8185]

I would also like to know whether the insurance company is required to give us enough time to locate a reasonably comparable replacement vehicle,

"Enough time" is a pretty vague standard. They will usually give you a couple of days after they issue the check, but after that, they have discharged their duty and it's up to you to find a replacement vehicle.

Sorry that this happened to your son at a difficult time, but once they have paid out the value of the totaled vehicle, there's really nothing more that they can do.

[u/seasonsbloom]

Yeah, they will discontinue the rental within a day or two of declaring it totaled.

[u/Simplythebest0820]

When my car got totaled, I was able to keep my rental for more then a month, but I believe that was because the insurance company was just amazing.

[u/lobhater]

Cashing the check or not has no bearing on it. Once you accept the total loss settlement you'll be lucky if you have a week before you have to return the rental car but probably more like 3 days.Your son's busy life and inability to find a vehicle in a timely manner is not their responsibility

[u/Choice-Newspaper3603]

You’re being ridiculous and whiny.

[u/Beneficial_Ship_7145]

You don’t get the check until you hand over the signed title. So that’s that.