Ohio insurance problems

[Kem]

What is the name of your state? Ohio

My wife and I live in Ohio. My 23 yr. old son attends school in Indianapolis, IN and drives a 2005 Ford Focus ZX3 SES 2 door hatchback. The car is in my wife_s name and included under our insurance policy. On the morning of November 23, 2006, he rear ended a pickup truck in Indianapolis. No injuries, but heavy damage to his car. We wanted the car towed back to Ohio, but since my insurance would only pay $100 towards towing the car from the impound lot, we chose to have it towed to a local Indianapolis Ford dealer/body shop.
The body shop is giving us an estimate of $8,300 to repair the vehicle. My insurance will cover the cost but I am having some serious differences of opinion with my insurance company.
I would rather have the car totaled. We purchased gap insurance through the bank that financed the car, so the $15,000 that my son still owes would become paid in full_..if the car is totaled. I_m not savvy on car insurance laws but what it gets down to is this: My insurance company is telling me that the car is worth $12,500. They would total the car if repairs came to 80% or more which equals out to $10,000. Since repairs will be $8,300, my insurance company is telling me they will not total the car and that I have to get it fixed.
My questions are:
Why does my insurance company get to set the _value_ of the car at $12,500? Don_t I have any say in this?
With the repair costs being so close to the amount needed for the car to be totaled ($1,700), is there anything I can do to get my insurance company to total this car?
I_m told that a vehicle is never right again after major repair. It seems like my insurance company could care less about what I think. Can anyone help?

 

[JETX]

Why does my insurance company get to set the _value_ of the car at $12,500? Don_t I have any say in this?

Because you are making a claim and asking them to pay.
The pay-off value has nothing to do with its FMV (Fair Market Value).

With the repair costs being so close to the amount needed for the car to be totaled ($1,700), is there anything I can do to get my insurance company to total this car?

Yep. You can ask them.

 

[moburkes]

But, they are not required to do that. Like you said, the threshhold is generally 80%, and you haven't met that threshhold. Unless you can come up with a reason why your vehicle isn't worth $12500, they get to decide.

It appears that the only reason why you want the vehicle totalled is to pay it off. Insurance wasn't meant for you to "profit". It was meant to return you to the condition you were in before the accident. When they pay for the repairs (at a shop of your choice), they will have done that.

 

[Kem]

It is the farthest thing from my mind to "profit" off of this accident. I do not have any solid proof, but I have been told that once a vehicle has had major repair work done that it is never the same. If this is true, I would hate to see my son make four more years of car payments on a car that will never be "right". If I am wrong and his car can be repaired correctly and put back in its original condition, it would be fine with me that it was not totaled. I just feel like my insurance company is doing all the dictating, with my input falling on deaf ears. If I really have no leg to stand on here, then I will have no choice but to have the car repaired. At this point I really don't know what my rights are.

 

[JETX]

I just feel like my insurance company is doing all the dictating, with my input falling on deaf ears. If I really have no leg to stand on here, then I will have no choice but to have the car repaired. At this point I really don't know what my rights are.

Their only obligation is to follow the policy requirements... and your state insurance laws. However, there is nothing in your situation that is a violation of either.

 

[GoJags]

It is the farthest thing from my mind to "profit" off of this accident. I do not have any solid proof, but I have been told that once a vehicle has had major repair work done that it is never the same. If this is true, I would hate to see my son make four more years of car payments on a car that will never be "right". If I am wrong and his car can be repaired correctly and put back in its original condition, it would be fine with me that it was not totaled. I just feel like my insurance company is doing all the dictating, with my input falling on deaf ears. If I really have no leg to stand on here, then I will have no choice but to have the car repaired. At this point I really don't know what my rights are.

Maybe you could claim diminished value on the focus? I know what you mean in that a car is not the same after you have to have repairs...esp. if the frame is bent, auto dealers will not pay 'fair value' for your car once/if you trade it in. Also, I can understand that you do not want your son driving a critically repaired auto, esp. with him being a ways away from you....

Does anyone have any knowledge on diminished value in Ohio? I do not know much, but I stumbled on this and thought I would add in my 2 cents, due to the fact that I had a focus and can understand what this fellow is going thru. I hope everything works for the best, ins. people can be quite....undealable?

Maybe you could request a second opinion/estimate?

 

[Kem]

Thanks for your post, GoJags.
My wife did find information on the internet regarding diminished value. Our insurance company explained to us that since this accident was my son's fault, we cannot claim/use diminished value.

 

[moburkes]

Ohio is not a state that recognizes diminished value.

The only reason why I brought up the "profit" was because YOU mentioned the GAP coverage, and the fact that you owe more on that vehicle than what it is worth.

 

[ecmst12]

You might want to find out what the damages are, and what the chances of continuing problems after the repair. If it's mostly surface body stuff, it may LOOK a little off, but it should still function the same. If the frame is bent or the internal components were damaged, maybe not, but talk to the mechanic and get his opinion (or have your son do so).

If they total the car, you know that you'll get nothing - no loan, but no car and no cash either. It's much better, IMO, to get it fixed; even if it's not quite right, as long as it's safe, he'll at least still have transportation for the next 4 years (unless he wrecks it again!). He's a college student, after all, he doesn't need perfection!

 

[JETX]

Maybe you could claim diminished value on the focus?

Sorry, but as in most states... diminished value won't fly.

In Kent v. Cincinnati Insurance Company, No. CA2001-04-100 (Ohio App. Dist.12 12/10/2001) found that there was no cause of action for diminished value of an automobile.

Also, read Goodman v. Grange Mut. Cas. Co., 2002-Ohio-6971 at:
http://www.sconet.state.oh.us/rod/newpdf/10/2002/2002-Ohio-6971.pdf

 

[Kem]

Just to let everyone know, the car is in the shop getting repaired. We did what we could do and we'll hope for the best. Thank you all for your responses!