Totaled Car - replacement value

[Sawdusted]

Guys, a good friend of mine just had her car totaled by a inattentive driver. This is in light of my own car being totaled by a tractor-trailer. My insurance compensated full retail price plus pro-rated adjustments for repairs (last 18 months). They will pursue loss from the trucker's ins co.

Since the other party is at fault for my fiend's accident, she is working directly with the other party's insurance to get the vehicle value back. She is being compensated a projected sale price, minus vehicle mileages adjustments which is absorbitant. Basically, she is getting a lot less than what the market value of the car, especially after she sunk in almost $4K in repairs over the last few years. The ins co claims that any repairs done is not claimable.

What I told her is that she should be able to walk out of the dealer with the keys in her hand with the check the ins co writes for a similar car. Right now, I don't think she is getting that amount.

What can she do to get the ins co to pay fair value? The compensating ins co is a very large company and probably won't flicker even if threatened with reporting to the AG.

 

[bdcardinal]

If I were her, I would be dealing with my own insurance company and see what they offer and if it is higher take it and have them collect from the other party.

 

[supton]

Repairs aren't covered. That is why people don't like sinking a lot of money into fixing up a car (or even maintaining it) because you never get it back. Ok, putting money into a car for maintance "maintains" the value, but common vehicle pricing (online guides, word of mouth) assume a working vehicle. Repairs just bring the vehicle value up to that.

I would look at CL in the area, and on eBay, and see what prices are for similar models and milage. A case might be made that the insurance company is taking too much off.

 

[bepperb]

She should go through her insurance, or through a lawyer.

Though I would agree the fact she spent 4 grand on maintenance has no impact on the value of the car.

 

[SatinSilver]

Throw out some numbers to us(year, make, model, miles etc) and we'll see how reasonable or unreasonable they are. Some people think they won the lottery when they're hit. Not referring to your friend but in general about others.

 

[racer12306]

Originally Posted By: supton
Repairs aren't covered. That is why people don't like sinking a lot of money into fixing up a car (or even maintaining it) because you never get it back. Ok, putting money into a car for maintance "maintains" the value, but common vehicle pricing (online guides, word of mouth) assume a working vehicle. Repairs just bring the vehicle value up to that.

I would look at CL in the area, and on eBay, and see what prices are for similar models and milage. A case might be made that the insurance company is taking too much off.


I would look at dealers rather than CL or eBay. Those asking prices will be higher than CL.

 

[dparm]

Her insurance company should be fighting for her. It shouldn't be her responsibility to negotiate for more money.

If, in the end, the other company won't pay out a fair value, you'd have to take them to court.

 

[99Saturn]

+1 on talking to her own insurance company. That's where she should start, they should be advocating for her.

 

[PhillyJoe]

Had a similar situation two years old getting hit. My insurance used comparable dealer values from a 50 mile radius for similar model ('02 Grand Am). We received more than I thought the car was worth in a private party sale.

Ask the insurance company for the comparables they used.

 

[zzyzzx]

Repairs don't count much, or at all, depending upon how recent and what they are. A recent engine might count for something, but really not that much.

 

[Kuato]

Originally Posted By: bdcardinal
If I were her, I would be dealing with my own insurance company and see what they offer and if it is higher take it and have them collect from the other party.


+1000. If she has the coverage, file with her own company for the replacement. Go shop the same veicle/miles/features and see what local dealers are getting for them. Take these prices to show the ins. Co, and do NOT accept their lowball offer. Insurance is supposed to make you whole, as in pay for replacement with same as you had.

 

[JHZR2]

Originally Posted By: dparm
Her insurance company should be fighting for her. It shouldn't be her responsibility to negotiate for more money.

If, in the end, the other company won't pay out a fair value, you'd have to take them to court.


That probably depends upon if she has full coverage or just liability. If just liability, then it is her looking out for herself to collect from their liability.

If that's the case, realize that the "Lawyers' Monopoly" is of no help to you. And the opposing insurance will work to make it a bleeding match. So the key is to start costing them so much in man-hours to work the process that they are better off resolving this by arbitration or settlement.

Assuming she is fairly eloquent and can put a reasonable argument together, Id start going on the offensive. Sue the at fault driver and their insurance company. SCC is easy to use. Her insurance will be obliged to provide counsel at $100/hr or more, burdened man-hour rate.

She might also start putting together a complaint with the state insurance commissioner for fraudulent behaviors by the insurance company.

If the opposing insurance tries to do interviews with her, she should decline or retain her own counsel because they WILL record her statement, dissect it, and their lawyers will turn it on her in court. Make sure you have the police report and that fault is clearly defined.

if you can find someone who is an expert on valuation of that kind of vehicle, that's helpful too. I did that when my car was smached by an inattentive, underinsured driver. I had a regional expert on valuation of MB cars come in and the opposing team (me the engineer vs a whole legal team) couldnt compete.

In the end I was praised even by their lawyers for putting together a proper case and how I wrote it, executed, etc. See, its so easy a caveman could do it!

 

[2oldtommy]

This case points to a very good reason to carry collision insurance in addition to state mandated liabilty. If there is no reason for your insurance company to cover the replacement cost, they are likely to tell you to get lost if the other party is at fault. (I assume the police report shows 2nd. party fault) Good luck in getting this worked out.

Oldtommy

 

[Sawdusted]

FWIW, it's a 2001 2.4L Accord with 136K. Her Zip code is 44106 and she's being offered $5000. I think she should be getting at least $5700. Most cars in the area list for $6200 to $6500 in similar condition.

She does not have collision, only liability. So she may be on her own to collect whatever she can.

I was reimbursed about 20% of my repair costs (pro-rated) when my car was totaled. Those repairs were done 2 months before the accident.

For those of you who argue that repairs don't count toward value of the vehicle, Consider this scenario: Would you pay "market value" of a vehicle with everything in good working order, with many parts recently replaced. Or would you rather pay the same price (dollar amount) for the same make & model, but with worn out and broken suspension parts and needs engine/brake work?

 

[HM12460]

Without collision coverage, I would take the 5k and be happy.

 

[sceva]

Recently had a car with 105,000 miles was totaled late December. Had just picked it up from getting a rebuilt engine installed (No cost to me as the dealer had an oops during service and damaged it) New front brakes ( again no charge - life time warranty) and some other service done. Other driver at fault and I received the near the upper end of local values as it was treaded like it had less miles due to the new engine. Also; they should add in what she will pay for taxes and title transfer as she is replacing her car and that is part of the replacement. Tell her to request they add taxes anf registration costs.

 

[hattaresguy]

$5k seems pretty good. Repairs don't matter you could have put $20k into it and they might bump it up to $6k if that. They assume the car is functional. If the transmission was slipping before it was totaled they wouldn't know and would offer to pay $5k.

If you have a high value car with a low book value you need an agreed value policy. A lot of older MB owners do this, or should.

 

[JayhawkRoy]

Check nadaguides.com. Many ins cos use this as their valuation tool.

With the minimal info you provided, it valued out as $4675 clean retail. That is what my ins co (plus sales tax) would provide me if I owned the car and had an accident. To get a more precise valuation, be prepared to provide trim line and option level for the car.

 

[SatinSilver]

I used to have a 1999 Accord that I liked. I'd take that offer and run.

 

[hypervish]

$5,000 sounds good to me for that car. You can always try for more, but I wouldn't count on it.