Need help: car totaled, settlement low and want to keep car

by brownnoser » Sun Sep 11, 2011 05:28 am

On 8/26/11 I was hit by a lifted truck on the freeway. He came into my lane and sideswiped me, taking out my driver door, fender, and mirror.

Filed a claim with my insurance (State Farm) as well as his insurance (Farmers) on 8/27/11.

On 8/30/11 Farmers calls me and says he accepted all fault so they will be taking care of all repairs. I schedule with them for an adjuster to look at my car on 9/2. On 9/2 the adjuster comes and goes over my car and he says I will receive information on whether or not my car is totaled after he gets info on how much similar cars are worth.

I give the adjuster a call on 9/6 and he says the car is totaled. I have to wait for their total loss settlement.

On 9/9 Farmers emails me the total loss documents.

Now, here is where I'm confused. They sent a market valuation report which I'm having trouble deciphering.



1. What does it mean that the condition is 'normal' followed by 'SIGNIFICANT WEAR AND FADE'? Does it mean that it's considered to have soiled/stained carpets?
2. What I'm having a problem with is the vehicle condition report doesn't match the actual clean condition of the vehicle. Can I get another appraisal?

I'm also confused on how much they're trying to settle for. The ACV the car is appraised for is $6878, sales tax is $602, license fee refund is $112, and total amount is $5246.42.

What does this even mean? How did they calculate all of this?

I'm located in California.

Total Comments: 11

Posted: Sun Sep 11, 2011 05:42 am Post Subject:

The second part of my problem is keeping my car. My car is heavily modified with extensive bodywork, suspension, and wheels.

1. Is it possible to ask for Farmers to settle for a lower amount that wouldn't total the car and I can take care of the repairs myself?
2. The accident damaged the driver side front wheel and tire. The wheel is now discontinued and cost $1200. I have receipts for the wheel and tire, how do I make them pay for it as well?
3. If they are set on totaling the car can I remove the aftermarket parts? I have bodywork such as front and rear bumpers and sideskirts. Can I put on stock replacements? Will they need to match the car in color? I'm not trying to defraud them.

Posted: Sun Sep 11, 2011 02:38 pm Post Subject:

What I'm having a problem with is the vehicle condition report doesn't match the actual clean condition of the vehicle. Can I get another appraisal?


I'm guessing its an older vehicle and those descriptions point out what "normal" is. Not bad, not excellent.

The ACV the car is appraised for is $6878, sales tax is $602, license fee refund is $112, and total amount is $5246.42.

I think you left out something as those values are all added together. Perhaps they deducted the salvage value?

My car is heavily modified with extensive bodywork, suspension, and wheels.


These items may not add much to the over-all value. But I'm also betting the appraiser did not consider them. You need to review the appraisal and if they were not considered, let the adjuster know.

Is it possible to ask for Farmers to settle for a lower amount that wouldn't total the car and I can take care of the repairs myself?


Probably not. They would pay less if they could. Usually it's state law that requires them to consider a vehicle a total loss at a certain percentage of the value. You could ask the adjuster if they would accept a contract for repair from a shop but they probably won't. You'd need to have a shop agree to repair _all_ of the damage for less then what Farmers would need to consider the vehicle a total loss at (usually 80% of it's value).

If they are set on totaling the car can I remove the aftermarket parts?


Only if they did not consider them in the value and only if removing them does not reduce the value.

Posted: Sun Sep 11, 2011 05:48 pm Post Subject:

Here is the breakdown of the settlement that they gave me.



How in the world did they calculate these numbers? I read that CA code of regulations title 10 subsection 2695.8 states they need to pay for my sales tax as well as license fee so I should be getting almost $7600 back.

Posted: Sun Sep 11, 2011 07:09 pm Post Subject:

One word... HUH???? I have no idea why they _subtracted_ those amount... they should be added, as you mentioned.

Posted: Mon Sep 12, 2011 03:32 pm Post Subject:

But even the subtraction does not "add up".

You need to call the Claims Dept and ask them what is missing from the statement, or to demand new accounting.

Posted: Tue Sep 13, 2011 09:55 pm Post Subject:

I had them redo the accounting and here's the new breakdown:

Actual Cash Value: $6878.00
Sales Tax: $601.82
License Fee Refund: $112.00

Total Amount $7591.82

To buy my car back, they would give me only $4547.47. They subtract the actual cash value from the salvage value of $2712.97, DMV fees of $18, and sales tax of $364.44.

Is it just me or does the salvage value seem ridiculously high? Can I negotiate with the insurance company in terms of receiving more from the settlement and paying less for the buy back?

Posted: Wed Sep 14, 2011 12:42 am Post Subject:

I had them redo the accounting and here's the new breakdown


You mean stop subtracting random numbers and start adding up real numbers? Yeah, nice of them to do that.

Is it just me or does the salvage value seem ridiculously high?

Yes, it does seem high. Where are they getting this amount from... more made up numbers? Usually the salvage value is around 20% of the vehicle's value. Ask them were they obtained the salvage value from and verify it.

Posted: Wed Sep 14, 2011 03:49 am Post Subject:

With the "salvage" numbers you posted, the vehicle use tax is not correctly calculated. In CA it is currently about 7.25% (can be somewhat higher in some communities). $364.44 would be the tax on about $5026.76. (The sales tax on $6878 would only be about $498.66.)

You seriously need to talk to a high level claims supervisor and quit fooling around with persons who are jerking you around. And you should consider filing a complaint ("Request for Assistance") with the CA Dept of Insurance. http://www.insurance.ca.gov/contact-us/0200-file-complaint/

Posted: Wed Sep 14, 2011 06:39 am Post Subject:

I think he actually calculated the numbers correctly and I just typed it out incorrectly .

Actual value: $6878
Salvage value: $2712.97
Actual value - salvage value = $4165.03
I'm right next to Pomona and tax is 8.75%

$4165.03 + $364.44 sales tax + $18 DMV fees = I get $4547.47

Is that correct?

I will be asking them where they obtained their salvage value number from.

Posted: Wed Sep 14, 2011 06:44 am Post Subject:

Another big problem I'm having is that my front wheel was damaged in the accident. I emailed in the receipt for it. How do I make sure they cover it? It's unacceptable that they're trying to just settle this for $4000 and wipe their hands.

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