Allstate vs State Farm - Which is the better company?

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PostPosted: Thu Dec 12, 2013 2:10 pm   Post subject: Total loss buy back  

Sil,



My car was deemed a Total loss by State Farm. The title belongs to a bank, so the payment will be given to the bank. I asked my agent about keeping the car only to hear from him I could purchase the car for $1300.



I haven't been in a car accident since I was 18 years old, I'm now 43, so this question may seem a little odd,, I guess. This car was originally paid off before the title was given to the bank for a loan. The original total pay off on the car was $19,000.00, the loan was for $10,000.00, we've paid about $2800.00 on the loan, during the 6 Years of ownership we've put about $2500.00 into the car in repairs, oil changes, tires etc..



Thats a total of over $25,000.00-(Give or take) in out of pocket money spent by us. Here's the question, what rights do I have in keeping the car with this much money paid by us over the Years?? The BANK is covered by my insurance, the insurer is covered by getting some profit from the sale of the Totaled Car. Myself, however, is left with $25,000.00 paid for a car, can't keep the car afterwards and MOST importantly, left without a car ALL TOGETHER.



How is this right or lawful?? Am I missing something here? Are there some angles here that you know of that could help?



Dumbfounded,



William Lee


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PostPosted: Sun Dec 15, 2013 11:38 am   Post subject:   

Let's see. Your vehicle was totaled and you want to keep it, and the insurance company has said you can purchase it for $1300. That amount will be deducted from what they are willing to pay for your totaled vehicle according to its Actual Cash Value (ACV).



ACV is the replacement cost minus depreciation.



You are asking about being paid the depreciated value plus the cost to both purchase and maintain the vehicle in working order. There is nothing in your or anyone else's auto insurance policy that offers to make such payment. Asking the insurance company to pay you $25,000 is absurd.



So let's try this another way. Over time, you buy $25,000 worth of milk, eggs, butter, bread, meat, cereal, fruit and vegetables over the years to feed yourself. On top of that, you pay $300 per month for electricity, gas, and water utility services. And you pay a gardener $100 per month to mow your lawn. So maybe that adds another $25,000 to the total. Not to mention the $100,000 in home loan payments you have made.



Your home unexpectedly burns to the ground one day. The insurance company writes you a check for $350,000 . . . the amount you chose to cover the repairs to the home and your personal property within it.



But now you want them to pay you for the food you ate and the utilities you consumed, and the grass that was cut. Is that reasonable? Of course not.



Quote:
How is this right or lawful?? Am I missing something here?




Yes, you are certainly missing something. You are confusing the cost of maintaining and operating your vehicle with its value. If the value of your vehicle included those elements, you would never have to pay for a new car again in your lifetime.



You would take the vehicle to a new car dealer and say, "Yessir, I've driven this vehicle over 200,000 miles, put $5,000 into for tires, $7,500 for oil changes, $35,000 in gasoline. Oh, and a few years back, I had to replace the engine because I ran it without water in the radiator. That set me back $3,500. And, of course, I paid $25,000 in loan payments. So, you see, the value of my vehicle is $75,500 plus another $1,300 in salvage value. You're asking $30,000 for this new car today. The way I see it, if I buy that car, you will owe me $46,800. Where do I pick up the check?"



That, too, is absurd.



What are you missing? The definition of ACV that controls your policy.



REPLACEMENT COST MINUS DEPRECIATION.



That's what you agreed to accept, and that's what the insurance company is offering. Next question.


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