by mslugx » Sun Dec 19, 2010 11:37 am
Hi everybody, it's not a great day for me, I got my car crashed and most likely it's going to be totaled. Still i wish you a happy holiday. I never got into a totaled accident before, and I have a couple questions to ask you guys.
1. How much will the insurance rate go up after they think the car is total crashed?
2. I looked it up, my car's market value is about 10K, how much you think I can get out of it? How can I fight with the insurance to get the most out of it?
3. Is the insurance company going to cover my rental car? Or I have to pay it myself?
Thanks for your time, and your help will be greatly appreciated.
1. How much will the insurance rate go up after they think the car is total crashed?
2. I looked it up, my car's market value is about 10K, how much you think I can get out of it? How can I fight with the insurance to get the most out of it?
3. Is the insurance company going to cover my rental car? Or I have to pay it myself?
Thanks for your time, and your help will be greatly appreciated.
Posted: Thu Dec 23, 2010 12:49 am Post Subject:
A tuneup would be considered routine maintenance. If you have records of all the maintenance and repairs, that could increase the value as you have maintained a vehicle history record. Many people don't but people looking for vehicles would consider that a plus. Kelly Blue book tends to run high and Nada/Edmunds tend to be more realistic of the car market. Each has a different way of considering a cars condition. They explain in dialogue boxes what is expected of a vehicle that is average, good, exceptional or excellent, or certifiable.
Each condition that is considered in each category, explains what conditon is expected of a car when the value is considered. There some insurers that like to deduct for unrelated prior damage and the cost to repair and refinish a panel with a minor dent that would be most likely considered already average condition. They would be penalizing you twice for the same present condition.
Posted: Thu Dec 23, 2010 12:58 am Post Subject:
Fair market value defined....
"Fair Market Value" is defined as the amount which would be agreed upon as a fair price by an owner who wishes to sell, but is not compelled to do so, and a buyer who wishes to buy, but is not compelled to do so,
presuming all relevant facts are known.
Private Party Values
The private market - for sale by owner/individual to individual type of sale is a common outlet for vehicle owners. Generally, the private market commands a lower price than when a vehicle is sold through a dealership. While reconditioning costs, advertising, and floor-planning are factors affecting dealership prices, there are additional factors that cause private party sales to be less as well.
Retail market
Because the vehicle owner is a retail consumer - they purchased the vehicle at a retail outlet (dealership), this would be the most appropriate market to determine the actual cash value.
Posted: Thu Dec 23, 2010 01:03 am Post Subject:
nada.com and edmund.com has about 3000 dollars difference, on the retail price. and Edmund actually run the lowest, which is strange. I been reading on the forums, and i get the impression that nada is the worse figure you can get.
Can I compare their figures with private party sales? I think the dealer will always have a better condition of the car and insurers will dot my car not being that condition heavily.
If insurer deduct me for unrelated prior damage, can i blame it on the accident?
Posted: Thu Dec 23, 2010 03:27 pm Post Subject:
nada.com and edmund.com has about 3000 dollars difference, on the retail price. and Edmund actually run the lowest, which is strange. I been reading on the forums, and i get the impression that nada is the worse figure you can get.
Generally I have found nada and edmunds to be close if the imput is accurate. Nada use to be the standard for car settlements and still is an acceptible source for evaluations. Some states even list NADA by name as a recognized source for vehicle property settlement disputes.
But ultimately, comparable vehicles in your market trump resource guides by most state statutes. You are owed the fair market value of your vehicle in your market. That is based on your ability to research your own market and make a reasonable determination of your vehicle's worth.
Posted: Thu Dec 23, 2010 08:14 pm Post Subject:
i am afraid if I give them the research result, they will deny it. Then it's going to a drag. I already spoke with the adjuster, she said it takes about 5 to 7 business days to tow the car to their junk yard and send out an appraiser to make me an offer. When I ask how long does it take before receive the check, they said it really depends on you if you accept the offer or not. To me it sounds like, they already prepared to low ball me and wear my patient out. At the end, I will accept their offer because I need the cash to buy a car. How can I deal with this situation smartly?
Posted: Fri Dec 24, 2010 06:05 pm Post Subject:
If we are talking about your own insurer and they offer to move your car and you agree that it is a total loss, you should allow them to move it to mitigate any storage costs that may be accruing. You have certain contractual rights and responsibilities when you are dealing with your own insurer.
Check your policy to see if you can invoke the appraisal clause. If they make you and offer and you feel it is low and have done your research, invoke your right to appraisal. It may cost you 250 to 300 dollars to hire your own appraiser and the insurer will be required to hire an independent appraiser to represent them. The two appraisers will examine all the documents and if they cannot agree to a fair settlement amount, then they will turn it over to a pre-selected umpire for a final decision.
You may even be able to accept the undisputed amount of the settlement and if you do not have the appraisal clause in your policy, first file a complaint with the DOI. Then if that can not be resolved you could take your insurer to small claims court to dispute the difference. People in this forum have contacted me and reported that by just invoking the appraisal clause, the settlement increased substantially.
However, many states have allowed insurers to remove the right to appraisal in their policies. If that is the case, I would send a certified letter to the insurer notifying them that I would seek the disputed amount in small claims court. By removing the right to appraisal they are basically saying, if you don't agree with us, sue us since their is no method to dispute your claim amicably.
Posted: Fri Dec 24, 2010 06:40 pm Post Subject:
From your experience, most of the time, do people have to go that extreme to get the amount they deserve?
There are so much steps involved if they make me an offer that i can't accept. It will take a lot of time before the case can be settled. Insurer might play this patient game to low ball me.
Can you tell me how much time does it take for the appraiser I hired to reach a decision with the appraiser they hired?
Thank you Mike and tcope for all the info you provide, I really appreciate it, and have a wonderful Christmas time.
Posted: Fri Dec 24, 2010 11:35 pm Post Subject:
Different states have different deadlines and rules. Just Google "invoking the appraisal clause" and you will pull up a myriad of articles explaining how, why, when and where to do this.
Merry Christmas to you and good luck with your claim.
Posted: Sat Dec 25, 2010 08:36 pm Post Subject:
do people have to go that extreme to get the amount they deserve?
No . . . most insurance companies make fair and reasonable offers to begin with. What causes claims to drag on seemingly forever is (1) failure to understand how one's coverage works and arguing over a misunderstanding, or (2) getting a lawyer involved (often unnecessarily).
Posted: Mon Dec 27, 2010 05:59 pm Post Subject:
@Mike Thanks for the info.
@MaxHerr We will see how it goes this week. What do you mean by "understand how one's coverage works and arguing over a misunderstanding?" Their offer has something to do with the coverage?
I will keep you guys posted.
Add your comment