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 Posted: Thu Jan 24, 2008 6:26 pm Post subject: Total loss settlement- ACV vs Settlement value |
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Hi,
I recently purchased a Honda Accord EX-L 2008 model on Dec-26, 2007. Unfortunately I met with an accident on the 14th of Jan 2008 (my fault) and I have comprehensive collision and damage coverage and also GAP insurance since I financed the car. The insurance company has declared my car TOTAL. I inspected the car and the front guard, the bonet, right side mirror, and lamps are totally damaged. The radioator is damaged and I believe there is a damage with the a/c hose pipes. The right side of the car has dents and needs painting. I believe there is no damage to the engine or interior. I am not satisfied with the decision as I believe the car is still repairable and I dont know what the ACV will turn out to be. The insurance person told me that the cost in fixing the car will be around $13000 which includes any suspected hidden damages (estimated). Can someone put complete focus on what steps should I take and if the car is really a total loss then what is the best deal I should expect based on the make/model/200 miles/and the description of damages? How long does it take for the cheque to reach the bank if its a total loss settlement, since after that only I can go for GAP and GAP has a time limit of 90 days from the date of accident. Please provide me as much information as possible since I am new to USA and do not know many things which I can easily overlook. Thanks for the replies in advance. |
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unosinu
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| Posted: Thu Jan 24, 2008 6:47 pm Post subject: |
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Here is my opion for what it is worth....if they declared the car totaled then you should let it go. There could be fram damage that you are not seeing and the car will pro never run the same way again.
The insurance company will give you what they believe the car is worth...KBB.com could help you in figuring this number out. Then the gap coverage will satisfy the bank and pay the remaining amount you have on your loan...you will then be able to get a new car and loan from the bank. I would go with the new car over fixing one that has that much damage to it. I also think you will have to get a salvaged title since the car will have been declared total...making your resale value on the car go down tremendously when it comes time to trade it in or sell it.
Depending on the company you are with if it is a total loss settlement you should get payment quickly...but remember they are are going to pay the bank which you are getting your financing from not you since they are listed as the loss payee/additional insured....the company pays the loan first...if there is $ left over from what is owed then you will get $. The gap covers the difference between what the ins company pays you and what is owed on the car...so you may be getting no money back but your loan will be paid in full so basically you will have to start over again with a new car and financing.....
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nique1221
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| Posted: Fri Jan 25, 2008 9:23 am Post subject: |
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| Quote: | | I inspected the car and the front guard, the bonet, right side mirror, and lamps are totally damaged. The radioator is damaged and I believe there is a damage with the a/c hose pipes. The right side of the car has dents and needs painting. I believe there is no damage to the engine or interior. |
Your believe may not hold good in case you are not a professional adjuster. Your car needs thorough inspection for all the hidden damages that requires mending. Otherwise it may not run the same way that it used to. Therefore, in this case, you may have to put trust on the decision taken by the insurance company.
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Bardadozboyz
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| Posted: Fri Jan 25, 2008 9:59 am Post subject: |
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Good morning unosinu and welcome...well are you SURE it's a total? | Quote: | | Honda Accord EX-L 2008 model on Dec-26, 2007. |
should be still worth 'close' to what you paid....MSRP on an 02 is about 23k so I'm not sure that 13k in damages would total your vehicle....What did you pay for it?
"IF" it is totaled, the you will pay your deductible, (to your lein holder) and your carrier will pay the balance of the ACV (actual cash value) to them, if anything is left then the GAP policy will step in...transversly if you put a chunk down, then the GAP won't have to be used, and you will get the balance...You will also be due the sales tax for the ACV is some method, either actually paid, or via an affidavit. For use on the vehicle you replace this one with...
Again ''if'' it totals, immediately put in a claim with your GAP company. Shouldn't take long at all to get this handled, the adjuster will need a guarantee of title release prior to issuing payment which they will get from your lein holder...
Any questions other than - ' what is acv ? ' or 'what is Gap', please don't hesitate to ask!
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Lori
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| Posted: Fri Jan 25, 2008 5:32 pm Post subject: Thanks for the replies |
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Hello All,
Thanks for your replies. As monique suggested, I feel the I should accept the car as total loss since it will never run the same. As Lori mentioned, I am confused that how can they total the car if the cost is 13k when I bought the high end model which costs almost 26k (showroom price). I will wait for the adjuster to give me the total loss settlement offer and then approach GAP Insurance people to settle the GAP. Thanks for the replies and please enlighten me with any issues that I can face or am unaware of! |
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unosinu
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| Posted: Fri Jan 25, 2008 11:56 pm Post subject: |
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Just let us know what you need or what questions you have as your claim progresses we will be happy to assist
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Lori
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| Posted: Mon Jan 28, 2008 9:14 pm Post subject: Claims |
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Hi,
Can you please tell me what happens to the other car which is involved in the accident. It was my mistake so I just wanted to know details like do I owe them any money for the damages or will my insurance take care of it? Your help and detailed answer to this situation will be greatly appreciated. Thanks. |
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unosinu
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| Posted: Mon Jan 28, 2008 11:03 pm Post subject: |
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Your insurance company will pay for all the damages to the other vehicle you will owe nothing on that....There is no deductible associated with the liablity portion of your policy. You are more than welcome, so glad we could be of assistance to you please do not hesitate to come back after your total loss settlement, and post more!
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Lori
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lakemen
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| Posted: Sat Feb 02, 2008 10:24 pm Post subject: |
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| If you have insurance it should take care of the damages. |
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goodnatured
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