Car totaled, Not at Fault

Dear Ashley:  When you suffer damage to your automobile as a result of an automobile accident, the at-fault party is responsible for repairing your vehicle or paying to you the fair market value of the vehicle as of the date of the collision, whichever amount is less.  This is regardless of what it will cost you to buy another vehicle, how much money you owe on the vehicle, etc.  If you believe that the insurance company is not offering you fair market value for the vehicle, then you have the option of suing the at-fault driver for the amount that you believe the vehicle is worth.  As to the rental vehicle, the at-fault party's insurance company only has to provide you with a rental vehicle up to the time that they offer you fair market value for the vehicle and delivered the check to you.  If you refuse the offer of fair market value, then they may terminate the rental vehicle at the time of your refusal or after a reasonable period of time after the offer.  Also, if your vehicle is totalled, the insurance company must pay the sales tax if you purchase another vehicle within 30 days of receiving the check for your property damage.  However, the insurance company must only pay the sales tax up to what a comparable replacement vehicle would cost.  So if you purchase a brand new vehicle, they only have to pay the sales tax on the amount which is equal to what it would have cost you to buy a similar car of like year, model, make, etc.  You have to purchase the vehicle within 30 days of receiving the check and provide proof of the purchase to the insurance company within 35 days of receiving check.  If you fail to purchase the vehicle within 30 days or provide proof within 35 days, the insurance company does not have to pay your sales tax. Best of luck to you.