Salvage Value seems to high

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PostPosted: Fri Aug 14, 2009 7:24 pm   Post subject: Salvage Value seems to high  

My auto was involved in an accident and a total loss. Adverse insurer accepted full liablity. The car was so totaled that noone wanted to purchase it for salvage. Tow company said they would take it off my hands if I paid them $200 (and that would also cover the $499 tow and storage bill which I would then submit to the adverse insurer). The adverse insurer offered me a good value for the car but they insist on deducting $744 as salvage value based on "their formula" for calculating salvage value. How can they just come up with a formula and deduct $744 for a vehicle without any real salvage value that was totalled due to the negligence of their insured? I would like to argue for a reduction of this, but don't know how it's all calculated. Thank you.


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PostPosted: Sat Aug 15, 2009 12:23 am   Post subject:   

Salvage value is deducted from the settlement offer when the vehicle owner was to retain the salvage. Yes, they have their own formula to calculate salvage, or they get salvage bids from companies (depends on the insurance company). My question is why would you keep the vehicle if it is totaled and not worth anything. Take their total loss offer and let them take the vehicle and they should not deduct the salvage value.



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PostPosted: Mon Aug 17, 2009 11:25 am   Post subject:   

I'm with Das...they only way they would do that is if you retained the vehicle. Is there a problem (ie no title?) that is MAKING you retain it?



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PostPosted: Mon Aug 17, 2009 2:04 pm   Post subject:   

I could see a reason a vehicle owner would want to elimate the salvage quickly as did this owner. I currently have an 08 vehicle in the shop with damage and no collision coverage. Many people simply are hoping to save by not carrying collision and comp. Car is in a tow and storage facility and inccuring costs daily, the adverse insurer claims they are not liable until they have completed their investigation on their time schedule. Meanwhile the owner must mitigate the storage and towing expenses and does not have the funds. They did the only thing they can do, sell the salvage and pay the expenses to mitigate accruing charges the insurer would have had to pay once they accepted liability.



I understand in the case above the insurer did accept the liability but when? They should have informed him that they could be responsible for the accruing storage. In most states insurers can not abandon totaled vehicles to third parties. If the insurer was aware that the vehicle owner was selling the vehicle to mitigate his expenses, I believe they had an obligation to inform him of his property rights to retain the salvage or allow the insurer to buy the salvage. The vehicle owner is owed for all losses due to the negligence of their insured. Seems to me that there was a lack of proper communication and understanding. Every motorist involved in an accident should be given a document prepared by their DOI on the rights as a third party victim and states need to make available statutes or booklets applicable for such losses and who is responsible for what.



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PostPosted: Mon Aug 17, 2009 11:07 pm   Post subject:   

Quote:
They did the only thing they can do, sell the salvage and pay the expenses to mitigate accruing charges the insurer would have had to pay once they accepted liability.
I don't know that, that was the only thing to do...Why on earth not tow it to their home? No storage fees there...OR a nice body shop owner could waive the storage fees if the owner signed a repair authorization for WHEN the investigation is completed.. Wink Maybe just my area, but all the shops around here waive any storage fees if they fix the wreck...

Quote:
Every motorist involved in an accident should be given a document prepared by their DOI on the rights as a third party victim and states need to make available statutes or booklets applicable for such losses and who is responsible for what.
I agree.



Some times investigations just take some time, ie waiting on police report, getting witness statements, even making contact with your own insured...BUT I agree, (and of course "I" always do)..the claimant should be told on day one or two that there is or could be a coverage, liability, (fill in the blank) issue or problem. That they cannot accept liability at this time. So they need to proceed as if they were going to have to take care of the repairs themselves. By either turning it in to their own carrier, or getting the vehicle out of storage.



This thread though, has something wrong with it..a couple of things jump right out...
Quote:
The car was so totaled that none wanted to purchase it for salvage
I don't know of any carrier that doesn't have a salvage contract with someone, and that contract guarantees they will accept all salvage. Even a 'basket' (which is what this vehicle sounds like), has a value, albeit low I've never seen even a basket go for less than 100 bucks..
Quote:
Tow company said they would take it off my hands if I paid them $200 (and that would also cover the $499 tow and storage bill which I would then submit to the adverse insurer).
This also sounds suspect. Most (again in the area I work in), tow/storage companys (assuming they are both the same co), will take the vehicle for the outstanding charges, I've never seen an additional payment be made to the tow/storage facility. The owners simply sign over the title FOR the outstanding charges.
Quote:
The adverse insurer offered me a good value for the car but they insist on deducting $744 as salvage value based on "their formula" for calculating salvage value
They most likely use a percentage, just ask them their formula and they will tell you.



There is something wrong here regarding the carrier deducting the sal. value or settling the claim as an owner retaining salvage, which is exactly what they are doing...What is the reason for this? Why are you not releasing the vehicle to the carrier? I just don't understand this.


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PostPosted: Mon Aug 17, 2009 11:36 pm   Post subject:   

The owner most likely allowed the police department to direct a towing service that is on a rotation basis to tow the damaged vehicle or the police/sheriff/trooper designated it a tow away vehicle. If that tow service does not have a billing agreement service with the shop that a vehicle owner wants it dropped off at, they have no guarantee of payment.

If the owner does not have the funds to pay that tow and many times is on their way to medical treatment, their vehicle is the last thing on their mind.



Cities like mine, forbid wrecked cars to sit in a drive way or on residential premises unless garaged. It will get a 24 hour notice to move and if not it will wind up in an impound lot accruing storage anyway. Not everyone has a garage and many wreckers will not take the liability to stab a car into a residential garage. So the only alternative is to wind up at a police impound yard or rotation based wrecker service. The associated fees are for towing, pulling out of ditch, dollying, flatbed, pulling up a hill or out of a creek, glass clean up and I believe bodiliy fluids including blood, must be dealt with by the wrecker service. They must also crash wrap broken glass and pickup debri belonging to the vehicle.



Many people live paycheck to paycheck with no readily available funds to pay for the tow, overnite storage, and associated fees to get that car out of the tow yard to an approved storage area that does not charge. They are then stuck between the proverbial rock and a hard place and are at the mercy of an insurer that moves quickly on third party claims to resolve the claim if their insured properly notified their carrier as is their contractual duty.



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PostPosted: Tue Aug 18, 2009 6:26 am   Post subject:   

I agree, there was a lack of communication somewhere. I found many vehicle owners that thought they had to take care of the salvage for a totaled car. They would usually jump the gun prior to our first or second conversation and would start worrying about how to get rid of it.



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PostPosted: Wed Aug 19, 2009 10:50 am   Post subject:   

Quote:
Cities like mine, forbid wrecked cars to sit in a drive way or on residential premises unless garaged.
I didn't think of that one...good point.
Quote:
Many people live paycheck to paycheck with no readily available funds to pay for the tow, overnite storage, and associated fees to get that car out of the tow yard to an approved storage area that does not charge.
I totally get that Mike, but seems to me that a person that can pay cash for an 08 vehicle, (apparently no lein if no collision/comp)...could afford to pay for a tow/storage bill to get a vehicle out of hock..
Quote:
They would usually jump the gun prior to our first or second conversation
I've had this many times as well...or not even on a total, have had claimants demand I reimburse them a days wages because they took the day off to get estimates of repair, without having ever talked to anyone..(this would never be requested where I work)...on the flip side there are companys/adjusters that are just plain lazy...but if it can be shown (and should'nt be an issue) that the carrier not the vehicle owner caused the delay, then that carrier should pay the charges.


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PostPosted: Thu Aug 20, 2009 3:57 am   Post subject:   

I've never had a carrier not pay for storage charges unless the claimant or insured slowed the process down.



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PostPosted: Thu Aug 20, 2009 9:55 pm   Post subject:   

Me either.



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PostPosted: Fri Jun 03, 2011 9:34 am   Post subject: CnFSpIlsnvvvvqsJX  

About9717.. Smashing Smile


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