Car got Totalled - Fair Market Value

Status
Not open for further replies.
Joined
Dec 26, 2012
Messages
426
Location
The Tropical Fine City
Guys,
Some of you may remember I posted about getting sideswiped last week by a flatbed tractor trailer.

Sideswiped

Well, I got a call from the insurance co this morning and the bad news is that they're going to total the car.

Now they're offering me what they think is fair market value (of a replacement in that vintage) for the car. Is there any way I can determine of this "fair value" is fair to me too in my market? I don't really believe KBB values as they're too high to me IMHO. I see KBB as a tool dealers use to tell customers they're getting a good deal on whatever car they're selling.

Not looking forward to car shopping again since I just bought the 3 months ago and I thought I was set for at least a few years! The engine still runs great. No problems with the tranny! Got 34mpg for the most part. No problems with the suspension and steering (until it got hit
mad.gif
). Terrible to see a good car junked because of the accident.

Sigh....
 
Push for full KBB or NADA value whatever is higher, take every cent you can get out of insurance. Explain how long you spent finding that perfect mechanical condition Corolla and how it is better than most. Only use what cars are selling for locally if it is higher than those published values.

Hopefully you can end up with a better car for the same money!
 
What are they basing their "fair market value" on?

Lots of insurance companies use KBB but you can always negotiate with them. Show them what you paid for the car 3 months ago and what a similar car, in your area, would cost now.

It kind of sounds like you think they're offering you to much money from your post.

You don't have to accept the first offer.
 
I've dealt with this a few times in recent years. The end result is often some form of "out of pocket" expense on your part. If only the deductible, if your insurance company is covering the cost. But, more than likely, an equivalent replacement car will cost you a few dollars after the settlement.

In any transaction, there are MANY "hidden costs" such as taxes, dealer fees, registration and title fees and so on. It can really add up on, for example, a $12,000 car. Don't forget to add all of these up for your counter proposal.

My only suggestion is to generate as clear a financial picture as you can, and then "go do battle" with what ever insurance company you have to deal with. Lay all the costs out, including the "car hunting costs", and negotiate from there.

Remember this, the insurance company agent is a "PRO" and does this on a daily basis. They know all the money saving tricks, and you won't. They might offer you a check, and once cashed, "seals the deal" as a firm agreement to their terms.

Allstate issued me a check for 1/4 of the actual damages to my truck. Allstate's hope was that I would fix the truck myself, and cash the check. Or simply not fix the truck. Since they know some people do this, this is a proven way for them to save money and hassle. At their customer's expense!!! Uncool in my book.

 
Last edited:
Might be able to find some good deals this time of year with all the year end sales/clearance. And why bother feeling sorry for insurance companies, that's what they are there for and they still make tons of money, worry about your own pocketbook first.
 
Last edited:
you will probably get more than you paid for it.. fair market value check car stealer lots

Sometimes you can buy the car back for $200.00 and either fix it or part it out.Either way try to get them to give you the car without a salvage title. It worked well for me
 
A friend just went through this. He went to several dealers in his area, found his same car and what it was selling for. He took these prices to the adjuster to show them the fair market value (which was 20k rather than the 17 they were offering)

Insurance companies may use KBB, which is well below what you could get for it, or even Black Book value, which is even lower. NADA is a bit higher so might be closer to what you want for it.

+1 on Cujet's thoughts on getting tax, tag, dealer fees, etc added to the total. Insurance is supposed to "make you whole" as in no out of pocket to replace with similar, and using this phrase may help.

Lastly, keep in mind that if you had the coverage, you can file under your own policy and get them to pay. Then they will deal with the other insurance company to recover.
 
Last edited:
Originally Posted By: crazyoildude
you will probably get more than you paid for it.. fair market value check car stealer lots

Sometimes you can buy the car back for $200.00 and either fix it or part it out.Either way try to get them to give you the car without a salvage title. It worked well for me


This here has made us tons of money on wrecked service vehicles in our fleet.

I bought back my last 3500 Savana and sold nearly all of it before calling the junkyard to haul it off and pay me 200 bucks for the empty hulk!

ALWAYS consider a buy back on a good car...
 
Thanks for the replies guys. The ins co is covering taxes and title for the vehicle. If I buy a similar vehicle, I think the check should about cover the cost of the car.

Salvage value is $1900. Unfortunately I don't have the time to fix up the car or part the car out. So I will most likley just take the check from the ins co.

Julian
 
Keep in mind the first offer is usually not their best offer.

I went through this recently with my mom's ins co. After some wrangling the claims adjuster came back with an offer that was about 30% higher than the initial offer.

However, that was the best and final offer. No amount of arguing or my supplied examples of market comparables made them increase the settlement amount. Which was still at least $1000 short of replacement cost, (if one could even be found on todays skimpy used car market).

The only recourse at that point was to hire an independent appraiser at our expense.

Your results may vary.
 
Originally Posted By: Sawdusted
...Now they're offering me what they think is fair market value (of a replacement in that vintage) for the car. Is there any way I can determine of this "fair value" is fair to me too in my market?
Yes, you can use any of the various valuations out there, paying special attention to the "retail" values. Just be mindful that there's a difference between asking/listing prices in ads and actual subsequent selling/transaction amounts and this applies in both the dealer and private seller markets.

Originally Posted By: dareo
...Only use what cars are selling for locally if it is higher than those published values.
01.gif
 
I went through this a few years ago with a Harley that was totaled. The first offer was $11k. They told me that if I provided comps for my area that they would adjust for them. I spent a week getting comps together and when everything was said and done they ended up paying me $16k.
 
that car's value is far above $1900. Do not accept that low of an offer. Insurance is supposed to make you whole, not to the cleaners.
 
Last edited:
When my 99 Altima got totaled I got market value less deductable when the repairs cost >80% of market value...it helped to give them receipts for major repairs/parts replacements done over the past year...
 
Last edited:
I would look at Ebay for the same car, but click "completed sales" to see how much the car is worth on open market.
Originally Posted By: SteveSRT8
I bought back my last 3500 Savana and sold nearly all of it before calling the junkyard to haul it off
Sold-off the parts?
Where?
How?
I damaged my car (front-end + hood smushed inward), the other driver's insurance company gave me cash for repair, and then I just kept driving it for another ~150,000 miles. I basically got a few thousand dollars in cash.
 
Folks,
I am looking for some advice. Recently my 04 corolla was totaled. Same is now on auction with salvage title. I am thinking of buying back, get it repaired and use it a spare family car. What are the pros and cons of running a salvage title car? How do I get rid of it in future? Looks like dealers do not accept a salvage title for trade-in.
 
Originally Posted By: blackman777
I would look at Ebay for the same car, but click "completed sales" to see how much the car is worth on open market.
Originally Posted By: SteveSRT8
I bought back my last 3500 Savana and sold nearly all of it before calling the junkyard to haul it off
Sold-off the parts?
Where?
How?
I damaged my car (front-end + hood smushed inward), the other driver's insurance company gave me cash for repair, and then I just kept driving it for another ~150,000 miles. I basically got a few thousand dollars in cash.



Offered the adjuster 600 bucks and he said 'yes'. My body shop already had the truck there and allowed us to come over anytime during normal hours to pull pieces.

I simply ran a small ad and I got DELUGED with responses. Note that this was a full on ultra heavy duty chassis so the parts were high demand...
 
Originally Posted By: Chakki
...Recently my 04 corolla was totaled. Same is now on auction with salvage title. I am thinking of buying back, get it repaired and use it a spare family car. What are the pros and cons of running a salvage title car?
The biggest pro is that it's cheap. The biggest con, assuming no post-repair safety-related concerns, is having trouble finding a buyer down the road.

Originally Posted By: Chakki
...How do I get rid of it in future?...
Perhaps push it off a high cliff? But seriously, you may consider donating it to one of the many charities who accept used vehicles.
 
Status
Not open for further replies.
Back
Top