I have an insurance question concerning Oregon's “Made Whole Rule” subrogation & recovery law. I was in a car accident and the other party' insurance company is accepting 100% liability. For easy math, let's say my vehicle Actual Cash value=$2,000, repair cost=$5,000, and cost to buy a replacement car=$3,000. I can think of two possible claims:
1) Pay the extra $3,000 to fix my car and claim that the other insurance company needs to pay me the $3,000, to make me "whole" again
2) Pay the extra $1,000 to buy a replacement car and claim that the other insurance company needs to pay me the $1,000+DMV title+license plates+gas shopping for the replacement car, to make me "whole" again
Your claim against the other driver's insurance company will be based on the amount of damages you would recover against the other driver for damage to or destruction of your property (i.e. the other driver's liability). In the typical property damage claim, where cost to repair exceeds value, the measure of damages will be the fair market value of the property. The fair market value should essentially be equal to the amount a vehicle of like kind and quality is priced on the open market (which I suspect could include fees to purchase as well).
If you do not agree with the insurance company's valuation of the vehicle, you can file a lawsuit against the other driver and submit your own value appraisal. You should speak with an attorney before you do this for many reasons.
Also, your policy (assuming you have collision coverage) may have a different method for determining the amount of your claim. Though, I suspect your policy would only provide fair market value, minus your deductible.
The above answer is for information only; and does NOT constitute legal advice. This answer does not constitute, nor does it create, an attorney-client relationship. The information provided on these pages is general only, and you should not act upon this information without consulting with a qualified attorney
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