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 Posted: Wed Mar 26, 2008 3:41 pm Post subject: Total Loss Options |
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I was in an accident last Wednesday which was 100% not my fault (apparently that's not only my view of it since the other driver's insurance policy is paying for my rental car and have taken over the claim on my vehicle). I initially opened a claim with my insurer (Nationwide), and they have inspected the vehicle. The damage estimate according to them was around $6500, and they mentioned that it would require $5000 more damage to be considered a total loss. This means that they are valuing my car at around $15400 since Kentucky requires the car to be totaled at 75% of the car's value. Now the other driver's insurer (Traveler's) is going to perform their own inspection and estimate of damage since they are responsible for the claim.
I really want this to be written off as a total loss because I have had bad experiences with wrecked and repaired cars having issues for the rest of their lifespan. The idea of driving a car that has sustained $6500 in damage does not appeal to me in the least. I currently still owe approx. $4000 on the car loan. Given this information, I have some questions...
1. The value of $15400 is higher than NADA trade value and all KBB Private Party/Trade-in values, but it is lower than the NADA Retail and KBB Retail values. How is this value deteremined by the insurance companies, and can it be disputed?
2. My Nationwide adjuster told me that even if Traveler's does not total the car, I can request a "Constructive Total Loss" where I am given the value of the estimated damages minus the payoff on my loan plus the salvage value of the car as-is.
2a. Is this true?
2b. What is the typical offer on the salvage of a car (% of car value)?
2c. Is this an easy/common practice?
2d. Should I do this or get the car fixed and take my chances in a private party sale?
Thanks in advance,
Dan
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wilheldp
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| Posted: Wed Mar 26, 2008 10:49 pm Post subject: |
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| Quote: | | . The value of $15400 is higher than NADA trade value and all KBB Private Party/Trade-in values, but it is lower than the NADA Retail and KBB Retail values. How is this value deteremined by the insurance companies, and can it be disputed? |
I know of no carriers that use Kelly, most use NADA retail value...or a computerized system such at CCC or VALUEMATE or some such program...yes, of course the value can be disputed...if you think they are under valueing your vehicle, (you think it's worth more than they say it is which is generally the complaint) then you can do some market surveys of your own, invoke the appraisal claus etc...
| Quote: | | 2. My Nationwide adjuster told me that even if Traveler's does not total the car, I can request a "Constructive Total Loss" where I am given the value of the estimated damages minus the payoff on my loan plus the salvage value of the car as-is. |
this way too much trouble, and I don't think Traveler would go for it.....Why do you just take the repair amount 6500.00 then sell the vehicle as is for oh I don't know 2-5k depending on the type of vehicle and the amount of damage, that what the party purchasing it, will not have a salvage title making it more attractive to a rebuilder? Then you pay off your car, and go get cha' another one!?
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Lori
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| Posted: Thu Mar 27, 2008 5:54 am Post subject: |
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| Quote: | | Why do you just take the repair amount 6500.00 then sell the vehicle as is for oh I don't know 2-5k depending on the type of vehicle and the amount of damage, that what the party purchasing it, will not have a salvage title making it more attractive to a rebuilder? Then you pay off your car, and go get cha' another one!? |
I agree. Would solve all the problem and be 100% fair to all parties. or have the vehicle repaired and then sell the vehicle. |
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tcope
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| Posted: Thu Mar 27, 2008 7:25 am Post subject: Right away? |
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Hi..
I feel sorry about the accident...this is quite an interesting scenario though..it might help others under similar circumstances..
| Quote: | | I agree. Would solve all the problem and be 100% fair to all parties. or have the vehicle repaired and then sell the vehicle. |
Should he go for it right away?
Shouldn't he wait a bit till he gets the other estimation..when he specifically says..
| Quote: | | Now the other driver's insurer (Traveler's) is going to perform their own inspection and estimate of damage since they are responsible for the claim. |
Thanx. PalinRome
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PalinRome
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| Posted: Thu Mar 27, 2008 10:03 am Post subject: |
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| Quote: | Should he go for it right away?
Shouldn't he wait a bit till he gets the other estimation..when he specifically says |
Certainly he should...if travelers estimate of repair is say 4k, and his carrier is already written 6500.00 then he should allow his carrier to pay him and then they will subrogate the other (travelers)...certainly he should 'take' the higher of the two... 
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Lori
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| Posted: Thu Mar 27, 2008 12:20 pm Post subject: |
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Thanks for the responses everybody, but the situation sorta resolved itself last night. Traveler's informed me that they are totaling the vehicle. So now I just have to talk to a new adjuster and hammer out how much they are going to give me for it.
BTW, when I was asking about disputing the value of the car in my original post, I was talking about lowering the value to increase the chances of it being totaled. But now, I want it valued as high as possible to get a better payout. I have the NADA and KBB values, as well as what my insurance company valued the car, so I should be in a good position to evaluate offers.
Am I correct that they have to give me tax, title, and license fees on top of the value of the car? If so, how do I calculate how much the title and license fees should be? Tax is easy...6% in KY.
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wilheldp
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| Posted: Thu Mar 27, 2008 12:31 pm Post subject: |
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first off glad it worked it's self out! | Quote: | | Am I correct that they have to give me tax, title, and license fees on top of the value of the car? If so, how do I calculate how much the title and license fees should be? Tax is easy...6% in KY._ |
You are correct and the title and license fees are state based the adjuster will let you know what these are an include them in your payment...the sales tax yes they owe you for sales tax on the ACV (actual cash value)...however states differ, some pay it to the owner, others (my state) issue a sales tax affidavit or credit, that is good I think six months, and you just take that with you when you go to the DMV to pay your sales tax on the new vehicle...
let us know if we can be of any further assistance to you!
p.s. if you have any extended warranty that you purchased etc...call and cancel it immediately and you should be do a pro rata refund...
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Lori
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| Posted: Thu Mar 27, 2008 1:58 pm Post subject: |
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Hmm...I paid sales tax at the dealership, and they handled the title and license there too. The first time I had to go to the DMV for my last car was a year after I purchased it to pay for the annual registration fee.
I have a call into the total loss adjuster at Travelers. I'm waiting to hear back on an offer and where we go from there. How long should I expect to wait between getting the offer and getting an actual check?
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wilheldp
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| Posted: Thu Mar 27, 2008 2:06 pm Post subject: |
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It won't matter what you did when you purchased this car, they owe you the sales tax on the value that it is determined now...same with the title fee, these are state fees....if you did this at the dealership does that mean that you financed the sales tax?...wait it doesn't really matter looks like your pay off is way less than the value....well shouldn't take over a week or so...the company I work for does it quick quick quick, generally within 48 hours of determining the vehicle is totaled a payment is issued, but that's if everything falls into place, your lein holder will be contacted by the adjuster they will need a payoff and a gaurantee of title release etc.....they do have you in a rental car for now right? Generally speaking they will allow you to keep the rental for about 72 hours after an offer of settlement is made, there is some flexiblity in that, with a weekend upcoming etc....
better get to car shoping! 
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Lori
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| Posted: Thu Mar 27, 2008 2:16 pm Post subject: |
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Actually, the reason I asked about the speed of payment is that my car shopping is already done, and I'm ready to pull the trigger. They do have me in a rental car, but I was planning on going out of town for the weekend and would prefer not to take the rental. Oh well, it's unrealistic at this point to think I'll get my check by Saturday.
I never really thought about it, but yeah, I guess I did finance the tax. Apparently Mazda 6's hold their value really well because I'm anticipating an approximately $10000 payoff after my lein is paid. That should make a healthy down payment on my new car.
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wilheldp
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| Posted: Thu Mar 27, 2008 8:31 pm Post subject: |
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| Quote: | | unrealistic at this point to think I'll get my check by Saturday. |
it will be a draft anyway rather than a check...so....
yeah, mazda' in general hold their value very well...happy car shopping...let us know if we can be of further assistance 
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Lori
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| Posted: Sun Mar 30, 2008 10:17 pm Post subject: |
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How does a bank draft differ from a check? I have the deal for my new car all set up contingent upon receiving the settlement money. Travelers told me that I would get the payment on Tuesday, and I also lose my free rental car on Tuesday, so I need to turn that check around and get the money to the car dealership on the same day. Will my bank (5/3) be willing to turn a bank draft into a cashier's check on the spot, or will there be a delay to allow it to clear first? If there is a delay, what are my other options?
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wilheldp
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| Posted: Mon Mar 31, 2008 2:44 am Post subject: accident |
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| Sorry to hear about the accident. However..I'm confused on something (nothing new for me..LOL). It was said, in this thread, that the OTHER insurance (Travelers) company 'totaled' the car. I thought the only people that could 'total' it was the INDIVIDUAL'S insurance company (Nationwide). Can someone educate me, on this issue, please? |
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sdchargersfan
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| Posted: Mon Mar 31, 2008 10:43 am Post subject: |
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Either carrier involved in a claim can deem a vehicle a total loss...this isn't something only first party carriers can do... | Quote: | | How does a bank draft differ from a check? |
Funds for a check are available generally within 24-48 hours, a draft has to clear the orgininating bank first, and can take 3-10 days to clear...I don't know of any state that allows claims payments to be paid in any other way other than a draft..I could be wrong, but I've never heard of one...that allowed checks..drafts are all we have | Quote: | | ...I have the deal for my new car all set up contingent upon receiving the settlement money. Travelers told me that I would get the payment on Tuesday, and I also lose my free rental car on Tuesday, so I need to turn that check around and get the money to the car dealership on the same day. |
Most car dealers are used to this, and will work with a person....might be that you just sign the draft over, or they can call the issueing rep and get clearance (i have this happen about once a month on average) | Quote: | | Will my bank (5/3) be willing to turn a bank draft into a cashier's check on the spot, or will there be a delay to allow it to clear first? |
I doubt it but I have seen it happen on a rare occurance with a long time bank customer..but it's rare....do you have a parent or someone that could give you the money out of their savings or something and deposit the draft back into their account (although I don't think it will be necessary, I think the car dealer will be more than happy to wait) | Quote: | | If there is a delay, what are my other options? |
Really there are none, as far as it not being a draft....that I know...before you get too excited call the adjuster ask if it's a check or a draft, then talk with the car dealer...I think it will work out fine...
I only tell people this because I had a kid one time, I paid for a claim, I said, "now this is a draft NOT a check do you understand the difference?" (in pure 19 year old know it all fashion), they said, 'of course I know'....then mom calls me screamin' a week later, 19 year old know it all deposited it to their checking account then began writing (and bouncing) checks all over town the same day they deposited it...
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Lori
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| Posted: Mon Mar 31, 2008 11:17 am Post subject: car |
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| Thanks for the reply. Now..if Nationwide DIDN'T agree with the decision ( of reporting the car as a 'loss'), can they 'dispute it' with Travelers? Or....if the owner of the car din't agree with Travelers, can THEY dispute it? |
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sdchargersfan
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