by Guest » Tue Nov 06, 2012 02:19 am
Hello,
I work as an auto tech and today I had a disturbing phone call with a customer that got me wondering how insurance companies determine ACV on a vehicle. Im hoping someone can shed some light on the subject.
Car- 2001 vw beetle gl 2.0 stick 130k. the car was totaled out previously in its life. It had a light front end damage that the insurance felt would cost 7k to repair. They totaled the car. Car was bought from salvage auction and fully repaired, title changed from salvage to reconstructed (PA title). This car, despite being reconstructed- was in beautiful shape. I am actually the person who rebuilt the car for the customer. It needed a radiator, condenser, cooling fans, core support, bumper cover and a fender. Really the car should not have been totaled the 1st time around imo. As the damage was simple unbolt.
The new owner had all service work done as well as the accident damaged fixed at the same time. They took out a loan for 5k to cover the cost of car/rebuild. They paid out of pocket for maintenance work. Yet the car was brought back to excellent condition. It was put back on the road in May/June of this year.
Last week the owner was rear-ended. There is 4k owed on the car still being she just paid 6 months of loans. Once again insurance says to repair car is well over 7k. Im not arguing this as seeing how bad the car is, it should not be fixed. The rear bumper is pushed into the back seat.
However, the owner's insurance as well as the driver who hit her are offering 2k total! You can not buy a dependable inspected car in PA for less than 3k. Heck, this type of car will do 1500-2200 at insurance salvage auctions. Clean retail of the car is 4-5k range pending what you use to estimate. This does not take into account all the service work that was performed under the owner's time.
usually i would not get involved but i feel bad for the young lady. She just graduated college, Had a dependable car to get to and from work and took care of it/respected it. Now she gets her car damaged at no fault of her own, and they want to give her nothing in return. I can see a 25% hit for being rebuilt. But that would still get her around 4k range if you assume her car is in high grade range condition wise--which it is- and subtract the 25% for r-title. Tires/brakes/Maintenance/body condition etc were all flawless.
I told her to ask for a buyback amount. They would not give her one. Why is that? I never heard of this.
How can she go about trying to get at least what she owes on the loan? The girl is not asking to get rich-- she just wants her car paid for or fixed. I do not think that is a unfair request. Yet her own insurance company does not seem to even want to go to bat for her!
I would think take the 2k, then take the other insurance company to court for the remaining 2k? Or does she take the owner of the car who hit her to court and not his insurance company?
Just a shame, as she is fresh out of school, working hard to get ahead and this set her back.. I can see the other insurance company playing hardball. Yet the nonchalant attitude from her own company alarms me.
thanks for any words.
Mike
I work as an auto tech and today I had a disturbing phone call with a customer that got me wondering how insurance companies determine ACV on a vehicle. Im hoping someone can shed some light on the subject.
Car- 2001 vw beetle gl 2.0 stick 130k. the car was totaled out previously in its life. It had a light front end damage that the insurance felt would cost 7k to repair. They totaled the car. Car was bought from salvage auction and fully repaired, title changed from salvage to reconstructed (PA title). This car, despite being reconstructed- was in beautiful shape. I am actually the person who rebuilt the car for the customer. It needed a radiator, condenser, cooling fans, core support, bumper cover and a fender. Really the car should not have been totaled the 1st time around imo. As the damage was simple unbolt.
The new owner had all service work done as well as the accident damaged fixed at the same time. They took out a loan for 5k to cover the cost of car/rebuild. They paid out of pocket for maintenance work. Yet the car was brought back to excellent condition. It was put back on the road in May/June of this year.
Last week the owner was rear-ended. There is 4k owed on the car still being she just paid 6 months of loans. Once again insurance says to repair car is well over 7k. Im not arguing this as seeing how bad the car is, it should not be fixed. The rear bumper is pushed into the back seat.
However, the owner's insurance as well as the driver who hit her are offering 2k total! You can not buy a dependable inspected car in PA for less than 3k. Heck, this type of car will do 1500-2200 at insurance salvage auctions. Clean retail of the car is 4-5k range pending what you use to estimate. This does not take into account all the service work that was performed under the owner's time.
usually i would not get involved but i feel bad for the young lady. She just graduated college, Had a dependable car to get to and from work and took care of it/respected it. Now she gets her car damaged at no fault of her own, and they want to give her nothing in return. I can see a 25% hit for being rebuilt. But that would still get her around 4k range if you assume her car is in high grade range condition wise--which it is- and subtract the 25% for r-title. Tires/brakes/Maintenance/body condition etc were all flawless.
I told her to ask for a buyback amount. They would not give her one. Why is that? I never heard of this.
How can she go about trying to get at least what she owes on the loan? The girl is not asking to get rich-- she just wants her car paid for or fixed. I do not think that is a unfair request. Yet her own insurance company does not seem to even want to go to bat for her!
I would think take the 2k, then take the other insurance company to court for the remaining 2k? Or does she take the owner of the car who hit her to court and not his insurance company?
Just a shame, as she is fresh out of school, working hard to get ahead and this set her back.. I can see the other insurance company playing hardball. Yet the nonchalant attitude from her own company alarms me.
thanks for any words.
Mike
Posted: Tue Nov 06, 2012 11:42 am Post Subject:
I told her to ask for a buyback amount. They would not give her one. Why is that? I never heard of this.
She can keep the vehicle and the insurance company can deduct the salvage value from their offer. No one can force someone to give up their property.I would think take the 2k, then take the other insurance company to court for the remaining 2k? Or does she take the owner of the car who hit her to court and not his insurance company?
Technically the other insurance company can (should) have her sign a release for the amount paid. If so, the right to claim any further property damage is done. However, for such a small amount they may not obtain a release. However, the check may state that it's Full and Final. In many states this is binding.
I can say that a 25% deduction off the value is standard for a vehicle with a salvage or rebuilt title. Like it or not, vehicles that have been considered a total loss are worth less. Let me ask you this... two vehicles side by side. Both worth $7000. One had $7000 in repairs done to it, the other never had any damage. Would you pay the same amount for both vehicles? If you would, I have some cars I'd like to sell to you.
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