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: Wed Dec 29, 2010 02:21 pm Post Subject:
Their offer has something to do with the coverage?
Certainly does! You are trying to increase the value of your claim according to the customizing you have done. Generally, this is not covered unless additional protection is purchased.
For example, some people have spent $20,000 or more on custom paint jobs, plus another $20,000 or more for gold-plated valve covers, chrome plating of carburetors, radiators, and other engine/body parts, all for show. Without special coverage, to an insurance company, paint is paint, and a whole car can be painted at Earl Scheib for $500 (I still remember the TV ads in the 1960s: "I'm Earl Scheib, and I'll paint any car for $19.95."). Without the agreed value of the customizing, the insurance company will never pay $20,000 for a paint job -- even on a top of the line Mercedes, Rolls Royce, or Lamborghini.
The overwhelming majority of property and casualty policies pay claims on the basis of "ACTUAL CASH VALUE" which is very different than most people understand. Ask any 10 people you know the following question: "Suppose you are in a traffic accident and your car is totaled. Will your insurance pay for a new car?" and see how many answer, "Yes." Entirely incorrect -- and it's one of the single biggest misunderstandings about insurance.
Look at some of the posts here from folks who write things like, "I've been with the same insurance company for 15 years, never had a claim until now, and I'm being ripped off! They are only offering $5000." As if to say, where's my credit for all those years with no claims.
But auto insurance is protection purchased one year (or six months) at a time. You pay and, mostly, you don't have any claims. And at the end of the year, the scale tips in favor of the insurance company. However, when a claim occurs, the scale usually tips in favor of the insured. But it's not a "win" when you have a claim, because you've lost something else of value.
It's known as an ALEATORY CONTRACT -- unequal giving and receiving. One party to the contract usually receives more [money] than the other party in the performance of the contract. When people fail to understand what is or is not covered, or how, or to what extent, it usually causes a problem in the event of a claim.
Just don't be too surprised when they don't give you much in the way of added value for properly maintaining your vehicle, or for the customizing you have done.
Posted: Thu Jan 13, 2011 12:16 am Post Subject:
Hi everybody, I am back with an update on my insurance claim. They made me an offer last week which is 12870, and I follow you guys instruction, to check the report, and make sure they estimate with everything on the car, and sure enough, they only put down sunroof. I sent they a list of missing features, which is premium sound, dual zone temperature control. After a couple of days struggles, They finally came up with an amount for me. They are going to pay out 14000 plus tax and registration to me. which is ok compare to nada.com 13650.00, but it's a bit lower than kbb.com's value 14640.00. Should I settle with this value or should i fight for it? Currently I don't have a car to drive, but i notice how inconvenient that is to get around. I lost my spirit to fight for higher. do you guys think i should accept the offer?
Posted: Thu Jan 13, 2011 06:55 am Post Subject:
Should I settle with this value or should i fight for it? Currently I don't have a car to drive, but i notice how inconvenient that is to get around. I lost my spirit to fight for higher. do you guys think i should accept the offer?
Are you serious? At this point you want to argue about a few hundred dollars? Take the money and run. You won.
Posted: Thu Jan 13, 2011 08:31 pm Post Subject:
Haha.. not even trying. I am happy with the money i have. Thanks for all the inputs. tScope, Mike and Maxherr you guys rocks....
Posted: Mon Jan 17, 2011 11:11 am Post Subject:
Hi all,
All insurance comapnies have their different policy of cover. It's all clearly written in the policy documents. Well most of the insurance companies cover for any kind of accidents or damage to our vehicle.
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Breakdown Car Insurance
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