Auto Accident - Not at Fault - Insurance Company not Paying Properly!?

[BlazedGlory]

Not at Fault - Insurance Company not Paying Properly!?UPDATE! GOOD NEWS!!!

What is the name of your state? Georgia

About 3 weeks ago, a man changed lanes in front of me and caused a $3500 repair to the front of my vehicle. The cop wrote up the report in my favor because it was clear what happened. His insurance has accepted responsibility, but now they are trying to screw me on payment.

The car is a 1990 Nissan 240sx. My personal insurance agent told me to go to kelly blue book and get the value of my car to start. She said if they total the car, they should pay me dealer retail value (which in my case is $2k-$2200 or so).

Here's the curveball with this particular car though: The car has an engine swap and a performance build of the engine. The engine was $3k, and there has been an additional $10k or so put into the vehicle in performance modifications (mainly the engine build).

This insurance company is trying to total the car. I faxed them 65 pages of receipts ($8000 worth of engine parts) and prices for the $3k engine as well as another $2k or so of values for stuff that I have no receipts for. They said they gave me $600 in value for the engine and $250 in value for all the parts, and that they will give me around $1800 or $1600 if I keep the car with a salvage title. So even with that measley $800 this means they originally appraised my car at half what it should be worth according to my insurance company.

They are trying to say that most of that stuff has no value because the average consumer doesn't look for that sort of thing in a car, but the way I see it is that it is my car, I am not trying to sell it... their client damaged my property, and they need to pay for what it is actually worth. AND I have receipts!

What should I do? Do I have any grounds to get an attorney to help me? I got a letter today saying that the case has come to a standstill and if they don't get the required paperwork (title, etc) by 12/02, they are going to close my case without payment and tell the state I am not cooperating with them...

Thanks a LOT in advance

 

[shell007]

OP wrote:

The engine was $3k, and there has been an additional $10k or so put into the vehicle in performance modifications (mainly the engine build).

You chose to add the additional accessories to this vehicle. You are only entitled to the "fair market value" of your vehicle and no more if it is totaled.

Take what they offer for your vehicle at "fair market value" or you'll loose out completely.

Someone will correct me if I'm wrong. Keep checking back!

 

[stephenk]

Do you race the car? If no, then why put $10,000 worth of engine in a $2000 car?

How old are the modifications?

If you can find comparable cars (with the modifications) for sale in your area that might convince the carrier of the true value of your car.

Your agent is wrong in that you are not entitled to dealer retail price for your car.

 

[justalayman]

OP wrote:



You chose to add the additional accessories to this vehicle. You are only entitled to the "fair market value" of your vehicle and no more if it is totaled.

Take what they offer for your vehicle at "fair market value" or you'll loose out completely.

Someone will correct me if I'm wrong. Keep checking back!

Why would he not be entitled to actual losses (minus depreciation probably)?
Anybody I know that has a customized car is required to have a rider to insure the "extras" (for theft/fire/vandalism) but they still recognize they have value. So he is expecting nothing more than what it would take to "make him whole".

 

[shell007]

Anybody I know that has a customized car is required to have a rider to insure the "extras" (for theft/fire/vandalism) but they still recognize they have value.

Well...if he has a "rider"...than he can/should turn the accident into his own insurance co. for compensation, but if not...he can/should accept "fair maket value". Period!

 

[justalayman]

What should I do? Do I have any grounds to get an attorney to help me? I got a letter today saying that the case has come to a standstill and if they don't get the required paperwork (title, etc) by 12/02, they are going to close my case without payment and tell the state I am not cooperating with them...

Thanks a LOT in advance

I still disagree with shellandty
You don't need "grounds" to get an attorney all you need is "greens" to pay them with. Go get the advice of one is the best advice anyone here will give you.

 

[teflon_jones]

First of all, as a fellow car enthusiast, I feel your pain, but you're not going to like what I have to say.

The car is a 1990 Nissan 240sx. My personal insurance agent told me to go to kelly blue book and get the value of my car to start. She said if they total the car, they should pay me dealer retail value (which in my case is $2k-$2200 or so).

Your insurance agent is incorrect on two points. First of all, you should be using the NADA guide (www.nada.com), not the Blue Book. Secondly, they should not be giving you dealer average retail. You are not a dealer. They should be giving you private party average retail.

They are trying to say that most of that stuff has no value because the average consumer doesn't look for that sort of thing in a car, but the way I see it is that it is my car, I am not trying to sell it... their client damaged my property, and they need to pay for what it is actually worth. AND I have receipts!

This doesn't matter. It's one of the hazards of modifying your car. You need to carry riders on your own insurance to cover any additional value you've put into the vehicle above and beyond the normal retail.

What should I do?

You need to sue the other driver and/or vehicle owner (if different) in court to recover any damages above and beyond what their insurance company is offering you.

Do I have any grounds to get an attorney to help me?

You should contact your own insurance company and ask them whether they'll provide an attorney if you sue the other driver in court (they should if you have appropriate coverate), or if there's any other way they can help you.

I got a letter today saying that the case has come to a standstill and if they don't get the required paperwork (title, etc) by 12/02, they are going to close my case without payment and tell the state I am not cooperating with them...

You should immediately contact them via CMRRR (certified mail return receipt requested) to tell them that you are considering their offer and need some more time to evaluate it. You should be doing EVERYTHING in writing.

Well...if he has a "rider"...than he can/should turn the accident into his own insurance co. for compensation, but if not...he can/should accept "fair maket value". Period!

In general, yes this is true. Just make sure any settlement still leaves him the option to sue the other insured party and/or driver.

 

[BlazedGlory]

Do you race the car? If no, then why put $10,000 worth of engine in a $2000 car?

I do occasionally, but your question has no relevance to anything here...

How old are the modifications?

All those $8k worth of receipts were within the last 6 months or so

If you can find comparable cars (with the modifications) for sale in your area that might convince the carrier of the true value of your car.

There are some cars around for sale with that engine, but no where near that modification. I actually included my bill of sale from January showing what I paid for the car with the engine and about 2k worth of accessories...

 

[BlazedGlory]

Your insurance agent is incorrect on two points. First of all, you should be using the NADA guide (www.nada.com), not the Blue Book. Secondly, they should not be giving you dealer average retail. You are not a dealer. They should be giving you private party average retail.

Well I just looked it up there and $1325 is the LOWEST I should be getting, but the car isn't in terrible shape...

 

[BlazedGlory]

So in response to their mailing saying that if I didn't send them the required paperwork by 12/02 I wouldn't get paid, I sent one back saying that on that phone call we also talked about how I was currently consulting an attorney and the insurance commissioner - I have been cooperating completely and I will continue to do so.

I called them and told them about the letter coming their way just so I could get on paper what we already spoke about. I again emphasized that their client damaged my property, and that they needed to repair it. Or I'd need at least $3000 and a salvage title (the repair was $3300) so I could at least get another car and swap the engine and all myself.

Finally realizing that I wasn't afraid to take legal action, they told me they'd send it to another appraisal company that deals more with high peformance cars, and see if they'd value the vehicle any higher.

To be honest I didn't really expect much out of that, maybe some more run around and tomfoolery, but this morning I got a call.

They are going to give me $5,000 and let me keep the car with a salvage title. I don't plan on repairing the vehicle... I should be able to get another car for $2000 max and then I'll take on the engine swap into the new vehicle myself...

Persistence pays, thanks for the help!