Posted: Wed May 23, 2007 10:46 pm Post subject: Insurance Claim
I hit a deer and I have an older vehicle, I thought the inurance company had to give me fair market value, or replace the vehicle. I am not in agreement with what the company has offered me for the car. How should I address this issue. _________________ Register Now to have your Insurance queries solved.
From which state you belong to. With which company you have an insurance for your vehicle? After knowing this all we can help you out. _________________ I am and always will be a sinner. But that's the beautiful thing about Jesus. I'll always try to be a better person in the eyes of God. But I'm not all of a sudden stepping up on a pedestal and saying I'm holier than thou, 'cause I'm not!
What does your policy call for? I'd agree that only fair market value is owed. How did your carrier arrive at the amount? Most likely they used either CCC or Auto(I'll fill in the latter part of the name if I remember). First, I'd strongly recommend that you review the carriers valuation to make sure that it's accurate. About 70% of the time I've seen errors in the carriers consideration due to options on the vehicle that were not included in the valuation (the latest I have seen is that the appraiser did not allow for a sunroof (gee... must have missed that). This also includes mileage on the vehicle as many times I've seen appraisers just submit the average mileage on a vehicle as the display was digital and they could not turn it on (gee... perhaps a call to the owner would reveal better information).
If you don't agree with the amount, supply documentation to your carrier showing that the vehicle is worth more. Be warned, that many times the adjuster won't consider it unless it is easy to see that their amount is way off.
Lastly, you can always submit to a 3rd party appraiser as your policy will allow. But in 17 years and thousands of claims, I've never seen nor heard of anyone actually doing this.
I can't think of the other valuation system either is it auto-track or something like that? Some companies (mine) also use NADA, please do not confuse that 'book' with blue book that is a bank reference book..
The carrier owes you the ACV (actual cash value) of your vehicle in prior loss condition. However, (and this is where many people get sideways), this includes a deduction for prior unrepaired or pre-existing damage, (not from this loss but before), generally a percentage of that damage rather than full amount. Keep that in mind.
Here's an example, your 'base' acv is 4000.00 however you had 1000.00 in prior unrepaired hail damage, and they will take (let's say) 80% of that damage, now your 'adjusted' acv is only 3200.00, you also have a honkin' dent in your drivers door that is rusting, the estimate to repair that is 500.00 so there's another 100.00 off so now we're down to 3100.00 acv. They cannot deduct normal wear and tear, just things that would lower the value. So look at your car objectively, (which is difficult for some owners).
I have seen the appraisal claus invoked in a few claims, however it rarely does too much good, owners generallly find out the adjuster was spot on with their evaluation.
You can do your own 'market search' contact three used car dealers, be honest about your vehicles condition and get their opinion as to value, this costs nothing but the time for a few phone calls.
The adjuster MUST explain to you how this evaluation was reached. Another thing to consider is are they using the right/correct book/system? In addition to the above (well written I might add), conditions, check the month/year of edition, (yes, it makes a difference between, June and July etc), and the correct region, this also makes a difference.
If you could provide more details I'm sure more assistance is a click away ! Good luck
Ps don't forget (dependent upon your state), you are owed sales tax, either in the actual money or a credit.
