Total loss of car - Advise please

[abbygail]

Total loss of car - Advice please

Our car was totaled(no fault accident) and we started a claim with our insurance company. car was in excellent condition, 5 years old with only 38k miles and brand new tires, fully paid. My insurance came back with a very low number for the car and when asked about the tires they said it does not matter if we had new tires, Is this true? What do we do now? How do we negotiate with them? Also, can we open a claim with the at fault drivers insurance as well to see who has a better offer? Any advice is really appreciated.

 

[justalayman]

Unless this is in Michigan, yes you can file a claim with the other party's insurance provider.

New tires do not raise the value of a car appreciably. It is normal maintenance item so it is considered a no value item. You have to have legally usable tires on the car so putting them on doesn't raise the value much at all and only for a very limited time.

Basically either insurance company would owe you fair market value for your car. They will likely come to a similar number as your insurance company. It wouldn't hurt to try though.

 

[CaptainCar]

Provide reciepts for recent work

If you have had work done on the car most recently like the last 2 months, you can give copies of the reciepts to the adjuster to justify a higher value.

 

[ecmst12]

Maintenance word doesn't raise the value significantly either.

 

[adjusterjack]

when asked about the tires they said it does not matter if we had new tires, Is this true?

Yes.

What do we do now? How do we negotiate with them?

Start by looking up your car's market value on Kelley Blue Book, Edmunds, and NADA. Google them and you'll find their websites. Print out the results.

Then go to Craigslist and Auto Trader websites and see what comparable cars are going for (same year, make, model, mileage, and features) keeping in mind that "asking" prices can be 10% to 15% higher than actual selling prices. Print out those ads.

Submit all that to your insurance company.

If your insurance company won't budge on the offer you can invoke the Appraisal provision of your policy.

Read your policy. Should look something like this:

APPRAISAL
A. If we and you do not agree on the amount of
loss, either may demand an appraisal of the
loss. In this event, each party will select a
competent and impartial appraiser. The two
appraisers will select an umpire. The
appraisers will state separately the actual cash
value and the amount of loss. If they fail to
agree, they will submit their differences to the
umpire. A decision agreed to by any two will be
binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and
umpire equally

Understand that whatever Appraisal costs you, you don't get back so there needs to be a significant difference in the valuation to make that worthwhile.

Also, can we open a claim with the at fault drivers insurance as well to see who has a better offer?

Yes. But you may be faced with the same problem. Only with the other driver's insurance company, if you don't like the offer, you will have to sue the other driver and convince a judge of the value of your car.

 

[abbygail]

Thank you all for the great advice! Would it be possible to request for the car tires and pay for the salvage value?

 

[justalayman]

Thank you all for the great advice! Would it be possible to request for the car tires and pay for the salvage value?

Do you mean like in you keeping the tires?

And who are you suggesting "pay for the salvage value"? If you mean you are paid the salvage value; no. You are already being paid the fair market value of the car. The insurance company owns the car after that. They would be paid the salvage value when it is scrapped. If you want to retain the vehicle you would be owed fair market value minus the salvage value.

 

[abbygail]

Do you mean like in you keeping the tires?

Yeah, since the tires are brand new, I was thinking maybe I should request them. Is it a good idea? or should I just cut my losses and be happy with the settlement.

 

[justalayman]

You can always ask. Some of it may depend on it causing it to be less mobile.

But the worst that will happen is they say no.

 

[adjusterjack]

You can always ask. Some of it may depend on it causing it to be less mobile.

But the worst that will happen is they say no.

I can pretty much guarantee that.

 

[Zigner]

The tires were installed on your car and driven on. They are *not* "brand new".

 

[abbygail]

I guess nothing wrong in asking. Thank you all, really appreciate your prompt responses