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 Posted: Fri Jan 22, 2010 9:28 pm Post subject: settlement with insurance |
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| have a 2001 Toyota Celica that was in Car Show Quality. In fact it was just in a car show two months ago and has a new custom paint job. My insurance totalled the car and their settlement seems low. They said they don't pay dollar for dollar for upgrades to the car, but they don't seem realistic for what they are offering. The car has a $4000 stereo system (they gave $250), the body kit is worth $2000 (They added $0), The carbon fiber hood and spoiler was $1500 (they added $200), The rims were $1400 (they added $200), the paint job was $2000 (they added $0). Should I take their offer, or can I argue about the upgrades? |
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burgesfootballbooster
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Joined: 22 Jan 2010
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| Posted: Sat Jan 23, 2010 1:49 pm Post subject: |
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| The upgrades you mentioned do not add value your vehicle. |
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Trench
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Joined: 16 Sep 2009
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Location: Kansas City
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| Posted: Sat Jan 23, 2010 10:44 pm Post subject: Settlement with insurance |
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Hi there,
In regards to the $250 offered in the settlement for your stereo, some insureres will set a reimbursement limit for coverage for damages to electronic equipment desiged for the transmission, receiving or reproduction of audio. As for the body kit, rims, spoiler and carbon fiber hood, it seems as though these items would be considered custom furnishings and equipment. Have you checked your policy to learn about coverage for customization? It may be that these items are only reimbursable at the cost of what would normally be installed or applied at the factory on your particular model of automobile. It could be that your insurer offers a rider to cover customization that you would have paid extra premium to purchase coverage for these items. In regards to generally disagreeing with the settlement, once again, check your insurance policy for the procedure outlined to challenge the appraisal. Hope this helps. |
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sunshineva
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| Posted: Sat Jan 23, 2010 11:05 pm Post subject: |
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| Quote: | | It may be that these items are only reimbursable at the cost of what would normally be installed or applied at the factory on your particular model of automobile. |
Bingo, thats how the majority of policies are written. |
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Trench
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Joined: 16 Sep 2009
Posts: 911
Location: Kansas City
152.85 Dollars($)
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| Posted: Sat Jan 23, 2010 11:23 pm Post subject: |
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or most policys have a 'custom parts and equipment' coverage max, (doesn't sound like yours does, but doubt check your policy you might have a new adjuster that forgot about that added coverage) UNLESS you increase the coverage, which of course increases your premium. Most auto policys will have a base coverage of say 500-1k in CP&E. Doesn't matter if you have 100k in in additional equipment..UNLESS you bump up that limit, or add an endorsement for it...And I don't blame them...look at your car as a prime example. You've NOT been paying premiums for a custom 'show car'...and/or any of these items..
I assume you have the impression your vehicle is worth what 16-19k? It may be in the right market. But the fact of the matter is...you've been paying premiums on a run of the mill, factory 9 year old celica...which on a good day is worth what? 6-9k depending on the options and mileage.
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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| Posted: Sun Jan 24, 2010 3:22 am Post subject: |
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This is a good lesson in how to approach auto insurance. A standard policy is never going to fully cover modest customizing (or even likely to come close), let alone all the tricks on a show car. You can rarely get full value from the appraiser for a new $400 set of standard tires the day after they were purchased, let alone $1000+ for a set of rims.
If a person has a "show car" and they want it "fully covered", then they have to go to the carrier and negotiate a stated value policy, same as a collector would on an antique or other unusual vehicle.
That's the benefit of actually working face-to-face with an agent instead of the D-I-Y route over the Internet or by phone.
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California-licensed Property & Casualty Broker-Agent and Life & Health Agent. CA Insurance License #0596197. Send me your questions, and I'll send you my answers. I live, breathe, and teach insurance! |
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MaxHerr
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| Posted: Sun Jan 24, 2010 12:45 pm Post subject: |
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| Quote: | | That's the benefit of actually working face-to-face with an agent instead of the D-I-Y route over the Internet or by phone. |
I couldn't agree more Max
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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