agent sayingy car is a total loss

by jmartinez » Sat Dec 22, 2012 02:23 am

I just put 3,000 on my vehicle on Thursday and was in a car accident The Monday after. The vehicle is a 2008 Chrysler town and country limited. The insurance agent is stating my car is a total loss. There is no broken glass, air bags did not come out, nothing wrong with the tires. I T-boned the other car going about 10 mph. The hood, bumper, right head light and right fender was the only thing that looked like had damage. I was able to drive the car around to the Walgreens to get it out of the sweet and it dis fine. Ac still works both head lights its just cracked on the right and the right tire rubbed the right fender when i turned to the right. The insurance wants to pay a little over 18,000 and i owe 17,000. It just seems hard to believe its a total loss. Can i get a second opinion??

Total Comments: 12

Posted: Sat Dec 22, 2012 03:29 am Post Subject:

You should obtain a copy of the carriers damage assessment. Take a look at it and I'm sure you will see that there is much more damage then you think. Feel free to take your vehicle to a repair shop of your choice and have them write up an estimate. You will probably need to get it there and the shop may charge a fee.

Posted: Sat Dec 22, 2012 03:31 pm Post Subject:

The insurance agent is stating


If you are genuinely talking about an "agent" and not an "adjuster", then you are dealing with the wrong person. Agents have no authority to settle claims, but they often get the claims department in trouble when they get involved. Adjusters are usually pretty good at what they do, but anyone can make a mistake, and you can always obtain a "second opinion" (most people here complain about loss valuations that are too low, not too high).

As tcope has said, any licensed auto body repair shop can give you an estimate of the damage -- and it should not cost you a penny to get an estimate. At least here in California no repair shops charge to do so. But a low price in collision repair may also get you a shoddy repair job.

A vehicle will be a total loss when the repair cost is more than about 75% of the Actual Cash Value. If that's what your damage is, you can negotiate a salvage price and have that amount deducted from the loss value. Then you can have the vehicle repaired and reregistered with a salvage title.

My mother-in-law hit a parked car about a year ago going about 15 mph, causing damage to her bumper, grill, hood, and (mostly) right fender. No airbag deployment, no glass or door damage. 2003 Buick LeSabre. Damage: $9000+. Way beyond my estimate of the damage (which is because I am not an adjuster). And although the vehicle has less than 50,000 actual miles, it was considered a total loss because the damage far exceeded the ACV of the vehicle. Her collision coverage paid about $5000, and we had the damage repaired and a salvage title issued. The car looks and drives as good as new.

Posted: Sat Dec 22, 2012 04:25 pm Post Subject: screwed

Thanks for the reply...the agent was going off the adjuster...sorry I didn't clarrify that. I spoke to them again and they go by 51% of ACV to classify Total Loss. And I did speak to them about salvaging the car. Because the TC has a lein holder (Just got it 4 days prior to accident) they would only pay the lein holder 9,000 and its my responsibility to pay the lein holder the remaining 9,000 and fix repairs. The agent states that he is sure that the lein holder will not finance the note because it is declaired total loss. So i think im screwed. Progressive is offering $500 back after paying everything off and a rental for 3 days. But this all still bites the total estimate for repairs is$ 9,850 and 51% would be $9,395. Some of the stuff they put is rediculous like $68.00 for Chrysler emblems. This just all really hurts.

Posted: Sat Dec 22, 2012 08:26 pm Post Subject:

What state are you in? 51% is unreasonably low for total loss valuation. Something does not seem right about this.

Ask them to provide you with a copy of the state law that sets total loss valuation at 51%, or their state filing documents that establish 51% as the total loss threshold. .

You should also contact your state's Dept of Insurance for assistance.

Posted: Sat Dec 22, 2012 09:04 pm Post Subject:

Im in Texas and apparently this is what progressive goes by.

Posted: Sat Dec 22, 2012 09:19 pm Post Subject:

Ask them to provide you with a copy of the state law that sets total loss valuation at 51%, or their state filing documents that establish 51% as the total loss threshold. .


A company could consider a vehicle a total loss at 1% or $1. However, this simply means that they would pay much more then they needed to. The owner could take the 98% over payment and keep the vehicle. Then just spend 1% to have it fully repaired.

I doubt Progressive is considering it a total loss at 51%. OP, if your getting this info through the agent... you should not be. You should be speaking directly to the adjuster.

It makes no sense that Progressive would be paying $18k on a vehicle when the repair cost is $10k. That simply does not add up.

If you think it can be repaired... take a loan for the salvage and repair cost. Keep the salvage and pay off the loan with Progressive's money and your money. You should have enough then to repair the vehicle and only have a $10k loan rather then an $17k loan.

I doubt that is going to work as I think you left something out.

Posted: Sun Dec 23, 2012 12:54 am Post Subject:

I would have loved to take a loan out to salvage my car and pay the repairs. But i don't think i would qualify. As of now i have not talked to the adjuster. We are getting an exel sheet comparing the prices the auto body is charging compared to ordering online. Big price differences. For example: auto body charging front panel $900 and online with shipment is $350 with the reinforcements. Im hoping they will reconsider once the spreadsheet is in place. I don't know. Im really lost.

Posted: Sun Dec 23, 2012 05:48 am Post Subject:

Here are three links you might want to review:
http://www.sheanerinsurance.com/Client_Services/Claims%20Auto%20Loss%20Valuation.htm and http://www.tdi.texas.gov/bulletins/2000/b-0014-0.html and http://www.badfaithinsurance.org/reference/PC/0027a.htm

Posted: Tue Jan 01, 2013 06:20 pm Post Subject: Work for free?

Mr Martinez I am sorry I did not see your quick message earlier to be able to offer any help. Tscope and Max generally give good advice but I often see it from a different perspective being on the repair side. Most shops you will encounter live in fear of insurance control, upsetting their insurance partners, and faced with being removed from direct repair programs to give you a personal opinion as that is not my case. However, if a shop is independent, they may face intensified steering of customers to shops more amenable to the insurers desires: a practice most insurers refuse to acknowledge. Of course, this is my opinion only having been in the collision industry side for more than 40 years.

As tcope has said, any licensed auto body repair shop can give you an estimate of the damage -- and it should not cost you a penny to get an estimate. At least here in California no repair shops charge to do so. But a low price in collision repair may also get you a shoddy repair job.



Max, are you really saying a shop should devote 30 minutes to 2 hours to properly document and blueprint damages on a vehicle the owner has no leverage to force the insurer to repair but just wants "for free", your knowledge, use of database, experience to prepare a document the insurer will likely toss into the round file.

Insurers frequently are totaling cars at 50 percent damages when they consider they may be paying 2 weeks worth of rental on top of that. With foreign markets having the ability to purchase and place bids on damaged vehicles, they drive the price of salvage unrealistically high. One must possess a salvage buyer’s license in most states, but if it is rolling salvage and will move under its own power, it is placed for sale on internet auctions to anyone including foreign interests. That makes it a simple decision for insurers to minimize their losses at the expense of their insureds simply because they have the right to total a vehicle at their option. When a vehicle is totaled any liability that may have been placed upon the insurer for a decision to repair a vehicle is eliminated and insurance is all about eliminating risks and maximizing profits. There use to be a time when some insurers actually cared about their insureds and their needs. Agents were eliminated from these claims issues to absolve them of callous decisions made by claims departments and bean counters. Flo only cares about selling insurance, she is not an agent and does not empathize with their policyholders needs after the policy is sold it seems.

Many people such as this poster can not borrow money on a salvage vehicle and may not be able to replace this vehicle again at the price he purchased because of a deplinished used car market. He will have to purchase another vehicle at retail value. I have personally helped people that desired to retain their salvage when it has been below the total loss threshold on third party claims much to the annoyance and chagrin of insurers especially when they must pay for up to a month of rental bills. The very contract language that insurers have in their policies for their insureds they attempt to impose upon third party claimants for their lack of consumer knowledge.

Did you really say body shops should perform their services for free? I guess those estimating programs, lifts to raise vehicles to perform inspections, lights, partial disassembly for access, heat, lights, utilities, and techs, administrative all are acquired at no expense to shop owners.

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