by stocktraders » Tue Aug 11, 2009 03:56 am
We own a 2001 Dodge Grand Caravan with 62,000 miles on it. We also live in California. Could you help me with two basic questions?
On January 23, 2009 while my wife was waiting at a green light to turn left a pickup came through the intersection and lost control hitting the lady stopped in front of my wife pushing that car into the next lane which hit another car, then the pick-up front-ended our van where it than stopped. The driver of the pick-up was cited and caused the accident according to the police report.
Mercury Insurance (the insurer of the pick-up) came over to our home, where we had the van towed and said something to my wife about $5000 to repair but the value was $4900 so they would most likely total it. We would hear from them.
After waiting one month I contacted Mercury Insurance and was told that they wouldn’t offer to settle until they had all claims in for the three vehicles. The pick-up driver had liability coverage of only $10,000
I contacted another insurance company and they told me Mercury could wait two years before paying out on this claim (the statute of limitations) for the other vehicles. And that they would pro-rate the payout when they made the payment.
So on June 14, 2009 I sued the driver of the pick-up. The judge did not seem happy that they refused to mediate with us (he and Mercury Insurance). They said it was a business decision. However, we would be happy to settle this. The estimate I received to repair the van is $6200. The small claims judge gave us $7250
$6230 Van Repair
$175 Tow Bill
$845 two weeks rental
I fully expected Mercury Insurance to appeal, and they have. The first judge dismissed the $5000 valuation that Mercury presented. I also, showed the judge print outs from Cars.com within 100 miles that showed I couldn’t buy a replacement van for less than $6000. In fact all the vans at this price range have 100k miles or more. Also, the $5000 figure that Mercury wanted the judge to go with didn’t include sales taxes and fees that we would need to pay when we buy the replacement van.
Additional info: we do not have collision insurance and Kelly blue book gave a value of $6000
My question is how reliable is the service that the insurance companies use to get ACV? It didn’t seem accurate in this case.
Is it a business decision for an insurance to wait for all claims before making a payment or is this the law in the state of California.
One additional point. A Mercury claims rep. indicated that they could cover the accident (all three cars) if they could settle my claim for $5000. If this accident is more than $10,000 why would they care. The insurance company is only on the hook for 10k Right?
Thank you for your help.
On January 23, 2009 while my wife was waiting at a green light to turn left a pickup came through the intersection and lost control hitting the lady stopped in front of my wife pushing that car into the next lane which hit another car, then the pick-up front-ended our van where it than stopped. The driver of the pick-up was cited and caused the accident according to the police report.
Mercury Insurance (the insurer of the pick-up) came over to our home, where we had the van towed and said something to my wife about $5000 to repair but the value was $4900 so they would most likely total it. We would hear from them.
After waiting one month I contacted Mercury Insurance and was told that they wouldn’t offer to settle until they had all claims in for the three vehicles. The pick-up driver had liability coverage of only $10,000
I contacted another insurance company and they told me Mercury could wait two years before paying out on this claim (the statute of limitations) for the other vehicles. And that they would pro-rate the payout when they made the payment.
So on June 14, 2009 I sued the driver of the pick-up. The judge did not seem happy that they refused to mediate with us (he and Mercury Insurance). They said it was a business decision. However, we would be happy to settle this. The estimate I received to repair the van is $6200. The small claims judge gave us $7250
$6230 Van Repair
$175 Tow Bill
$845 two weeks rental
I fully expected Mercury Insurance to appeal, and they have. The first judge dismissed the $5000 valuation that Mercury presented. I also, showed the judge print outs from Cars.com within 100 miles that showed I couldn’t buy a replacement van for less than $6000. In fact all the vans at this price range have 100k miles or more. Also, the $5000 figure that Mercury wanted the judge to go with didn’t include sales taxes and fees that we would need to pay when we buy the replacement van.
Additional info: we do not have collision insurance and Kelly blue book gave a value of $6000
My question is how reliable is the service that the insurance companies use to get ACV? It didn’t seem accurate in this case.
Is it a business decision for an insurance to wait for all claims before making a payment or is this the law in the state of California.
One additional point. A Mercury claims rep. indicated that they could cover the accident (all three cars) if they could settle my claim for $5000. If this accident is more than $10,000 why would they care. The insurance company is only on the hook for 10k Right?
Thank you for your help.
Posted: Thu Aug 13, 2009 08:40 pm Post Subject:
I would simply look for comparative vehicles that are available in your market that are for sale and get a firm purchase price. You need to document the information, confirm none are prior salvage, consider similar options, mileage, conditions, etc. Two vehicles for sale today trump what a dealer stated he would take in a flawed program like CCC or autosource, valuescope or whate ever they call it. My state statutes say that if you and the insurer do not agree on the value, comps can be used.
In Missouri
What is Actual Cash Value?
The insurance company is required to pay the fair market value of a vehicle. The fair market value of your
vehicle can be found by surveying dealers in your area, receiving information from recognized groups such as
“CCC”, “ADP AutoSource”, or one of the industry guides, such as “NADA” to determine the average retail
price. When disputing the company’s offer of settlement, it is up to you to prove that your vehicle is worth
more than what the company is offering.
The insurance company will adjust the value based on physical wear and tear as well as any pre-existing
damage. If the company determines some replacement items are better than the ones damaged, they may
apply “betterment.” Betterment is an improvement that increases the value of property and is more extensive
than mere repairs. You would be responsible for those charges. For example, if the tires are damaged or the
battery or mechanical parts must be replaced, the company may replace new for old. The betterment would
depend on the age of the older item being replaced.
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