This question (well, ‘questions’ actually) is for any insurance types, or anybody who just happens to have experience in this sort of situation. I bought a used car a few days ago. The very next day, I got run off the road when somebody tried to change lanes into me, and I smacked into a guardrail. The other car didn’t hit me, so the driver saw fit to speed off, leaving me sitting on the side of the road (I didn’t catch the license number). By the insurance adjuster’s estimate, the car is totalled.
Because I’m under 25, my insurance rates are through the roof even though my driving record’s clean, so I only had Virginia state minimum insurance, which includes liability and Uninsured Motorist. Because the accident report (which I obtained a copy of) lists the accident as no-fault, with Driver #2 listed as “unknown” and the box reading “Driver Fled Scene” checked, I filed a claim for damages under Uninsured Motorist. As I said, they already sent an adjuster out to look over the damages to my car, and I was told that it’s totalled. So, I’m left with a few questions, all of which I could probably ask the insurance company, but I don’t want to come off as if I don’t know what I’m talking about (even though in this case, I don’t). Now for the actual questions:
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Should the insurance company cover the damages under Uninsured Motorist, depsite the fact that the other car didn’t actually hit me?
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Does the fact that they sent an adjuster out to estimate the damage mean that they’re going to cover it?
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If they do in fact cover it, and the car is totalled, what amount are they going to pay me? The amount I paid for the car, the book value (which is $2000 more than I paid for it), or some other amount? Incidentally, the U.M. covers damages up to $20,000, which I can assure you more than covers the amounts we’re discussing here.
Some other information that may or may not be relevant: my insurance is through Geico, I bought the car outright (so there’s no lien, and I do have the title), and the accident report depicts a scenario such that if the identity of Driver #2 was known, that driver would have been at fault. Any answers/advice you all could give would be highly appreciated. Thanks!
–Ian
(He Whose Luck Smashes Cars On The Second Day)
Ian. Glad YOU’RE not hurt (badly).
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The type of unisured motorist you describe is called a “phantom vehicle.” That there is a term for it should bring some encouragement–it refers to a vehicle that causes an accident by its actions without actually striking another car. The company I work for would pay your damages in the accident you describe. I don’t work for GEICO. And I don’t work in Virginia. Both may be important because if VA law isn’t clear about what an insurer must do then GEICO *could *opt to deny phantom driver claims in VA. But it’s not unheard of for your type of claim to be paid (and as a bonus, deemed not your fault and thus no surcharge. Keep yer fingers crossed!).
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The fact that the company spent the time & money to evaluate the damage is promising. Otherwise as a fair claims practice they should have denied the coverage upon your reporting the accident. More reasoning: Sending an adjuster to inspect the car *could *give you the impression that there is coverage, which *could *prompt you to take action, like buying another car, based on that assumption. This can become a case of what lawyers like to call “detremental reliance” wherein you argue the insurance company led you to believe X and so you acted accordingly only to find out you were misled. It’s a yucky YUCKY thing for an insurer to have to deal with, so they generally will let you know up front that there is either no coverage, or that there is a coverage question which will be resolved upon investigation of the claim & surrounding circumstances.
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Most states require that you are paid the fair market value for the car. Some states go further and cite a particular publication as the source of that value (i.e. NADA). When I settle a total loss the first thing I check is what the same year, make & model with comparable mileage & condition is actually selling for in the local area. That will be my first offer, and I back it up with, “Duh! That’s what they cost!” In the event the car is a new purchase, will ask for the bill of sale or other purchase paperwork only if my offer is disputed as too low. I have no intention of explaining to a jury why I determined the market value to be $X,XXX when the customer just bought the car for $1k more 2 days ago. It could be done, I suppose, but most juries would favor the customer in that kind of suit.
You should at least be able to get what you paid for the car. I’d count on getting what should have been paid for the car…provided they’ll pay the claim.
Ok. I spent a little time looking into the issue, but didn’t have the time to do comprehensive research.
Here are some general thoughts.
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According to this, uninsured motorist coverage is not mandatory. There is a mandatory uninsured mortorist fee if you don’t have liabiity insurance. Are you sure you bought uninsured motorist coverage?
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Virginia is not a no-fault state, and most of my experience is in no-fault states, so I could be totally out there on this one.
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In many states, the only source of recovery for damage to your own car is your own collision/comprehensive insurance policy. Your UM policy might have an exclusion for damage to your own car. You’ve got a copy of the policy, right? 
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But if that is so, you might wonder why they sent out an adjuster.
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You can contact the Bureau of insurance for more information about insurance coverage.
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Good luck.