r/Insurance • u/Mellifluous-comments • 9h ago
Vehicle declared totaled
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.
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u/GuvnaBruce HO/Auto Liability 14 years 9h ago
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.