Am I required to locate the exact same replacement vehicle?

What is the name of your state?Ga
Because the market value is insufficient for the purchase of the replacement vehicle, I presented the similar car quote I got from the dealer to the at fault other car insurer. But, they said the replacement vehicle must be in the same model, year and closer mileages if I look for the vehicle from the dealer; otherwise, I must accept their market value searched from online and Autosource. Of course, they found the same model and year car but less value. Is it true that I must locate the exact same model, year vehicle for the replacement of destroyed car? If I cannot locate the exact same model, year replacement vehicle, how shall I do? Thank you for your answer?What is the name of your state?

immiq said:

What is the name of your state?Ga
Because the market value is insufficient for the purchase of the replacement vehicle, I presented the similar car quote I got from the dealer to the at fault other car insurer. But, they said the replacement vehicle must be in the same model, year and closer mileages if I look for the vehicle from the dealer; otherwise, I must accept their market value searched from online and Autosource. Of course, they found the same model and year car but less value. Is it true that I must locate the exact same model, year vehicle for the replacement of destroyed car? If I cannot locate the exact same model, year replacement vehicle, how shall I do? Thank you for your answer?What is the name of your state?

Click to expand...

Well you aren't required to BUY the same vehicle, but you are trying to prove the value of YOUR vehicle, not some other one.

You are entitled to the value of your vehicle, NOT the cost to replace it.

So, I am entitled to the value of my vehicle, not the cost to replace it. If so, and if my car struck your vehicle badly and my insurance offers you only $4000 “market value” but you will have to cost $5000 to buy a similar replacement vehicle, you will be very happy to take additional $1000 from your pocket to buy it, right? Is there any lawyer here to answer the question?

immiq said:

So, I am entitled to the value of my vehicle, not the cost to replace it. If so, and if my car struck your vehicle badly and my insurance offers you only $4000 “market value” but you will have to cost $5000 to buy a similar replacement vehicle, you will be very happy to take additional $1000 from your pocket to buy it, right? Is there any lawyer here to answer the question?

Click to expand...

These people are not giving you a dismissive flip answer. You are not entitled to the cost to buy a replacement car, you are only entitled to the value of your car before it was destroyed given its make/model/year/condition/mileage, or the cost to repair it (whichever is less). The cost to buy the replacement car that you'd like is completely irrelevant.

If you are not happy with the offer, then show the company that your car was worth more. YOUR car, not the car you would like to buy. Find out what a car of that make/model/year of similar condition and mileage is selling for. If you dont like the resources they are using to establish this value, then find your own proof that your car was worth more than they said it was worth. Some people use a few ads from dealerships or individuals around their state. Again, the value of the car you would like to buy is completely irrelevant, the value of your car right before it was wrecked is the only thing that matters. If you had sold it instead of wrecked it, what would a willing buyer in your area have reasonably been expected to pay you for it?

If all else fails and you can not come up with a reasonable compromise or settlement agreement with the insurance company, then your only other alternative is to sue that other driver in small claims court (called the "Magistrate Court" in Georgia). The court will also want to know what your car was worth, not the price of the replacement car that you'd like to buy, but if the judgement went in your favor, the insurance company will then pay the judgement up to their policyholder's limits.

Now, GA is one of the few states which recognizes diminished value.

However, I'm done with OP. He can do his own research.

Thank you for all your comments. You know I am not selling the car to someone else but buy the similar replacement vehicle due to the accident. I am not going to buy ANY car but the SIMILAR car to replace my total loss vehicle. I think there are two issues.

The other car insurer said, you need to locate the same year, model car, and then we can consider the quotes from the dealer.

Q1: I wonder whether I am required to provide the same year, model car quotes. If I cannot locate the exact same year, model car, how shall I do?

Q2: If the insurance offer is insufficient for a purchase of the SIMILAR replacement vehicle, am I entitled to the difference or I have to demand it from the other car driver or take it from my pocket?

immiq said:

Thank you for all your comments. You know I am not selling the car to someone else but buy the similar replacement vehicle due to the accident. I am not going to buy ANY car but the SIMILAR car to replace my total loss vehicle. I think there are two issues.

The other car insurer said, you need to locate the same year, model car, and then we can consider the quotes from the dealer.

Q1: I wonder whether I am required to provide the same year, model car quotes. If I cannot locate the exact same year, model car, how shall I do?

Q2: If the insurance offer is insufficient for a purchase of the SIMILAR replacement vehicle, am I entitled to the difference or I have to demand it from the other car driver or take it from my pocket?

Click to expand...

A1: The insurer already gave you the terms of their offer.

A2: If you accept payment from the insurance company, you will waive the right to seek anything further from the other party. So, you have two options: Take the insurance money, or sue the other driver for the TOTAL amount you would like. But, keep in mind, you run the risk of getting even LESS money through the court - and it will take much longer.

immiq said:

Q2: If the insurance offer is insufficient for a purchase of the SIMILAR replacement vehicle, am I entitled to the difference or I have to demand it from the other car driver or take it from my pocket?

Click to expand...

You pay it from your pocket. All you are entitled to from the other driver is the value of YOUR car, NOT A SIMILAR CAR, immediately prior to the accident.

And diminished value is irrelevant in the case of a total loss.

I am curious. What are the year, make and model of your car, and why is it so diffcult to find another one for comparison?

The replacement cost is irrelevant, as others have said. If you intended to replace your totalled car with an older, cheaper car, would you accept less than the value of the totaled car? What if you decided not to drive anymore and replaced it with a bicycle? Would the cost of new bike satisfy you? How about the cost of a bus pass if you decided to just use public transportation from now on? I'm not saying this to be rude or argumentative, but to illustrate the point. It's the value of your vehicle, not the value of the replacement.

I just have to poke my nose in hear and stir things up but replacement cost should be exactly fair market value BUT it would be for the exact same vehicle.

That is why the insurance company deals with value and not replacement cost because it is often difficult to find the exact same vehicle.

I lost interest when OP started being rude.

ecmst12 - You're right. I wasn't paying attention that it was a total loss, although OP did say that he was buying another vehicle.

You may think to get the money for something else but not truly to buy the replacement vehicle. So, you do not care the replacement costs for the totaled vehicle. I think that’s why you prefer the less market value but never care the replacement costs. Of course, I am talking about the replacement cots for the same or similar car. If the insurance cannot pay the replacement costs, then it should provide a same or similar replacement vehicle without paying anything. Fair enough?

immiq said:

You may think to get the money for something else but not truly to buy the replacement vehicle. So, you do not care the replacement costs for the totaled vehicle. I think that’s why you prefer the less market value but never care the replacement costs. Of course, I am talking about the replacement cots for the same or similar car. If the insurance cannot pay the replacement costs, then it should provide a same or similar replacement vehicle without paying anything. Fair enough?

Click to expand...

I have no idea what you're trying to say.

Maybe if this is simplified.

Fair market value:the value (or cost if you will) of any given vehicle in its current condition in the area in which it is sold.

replacement cost: what it would cost to replace what you have lost.


end of simple
-------------------------------------------

In the auto market, fair market value is replacement cost. Take note though that we are speaking of a vehicle that is exactly like the one you lost. Any variation of age, mileage, condition, etc. will alter the value of the car.

In other markets, such as housing, insurance comapnies often deal with replacement value rather than market value because it is typical to replace the lost structure in situ. It is very difficult to replace a house with market value becasue each house is distinct and finding exactly the same house in exactly the same PLACE is impossible so many insurances do offer actual replacement value insurance as well as market value insurance.

So, in your case, market value is replacement cost IF you can find exactly the same vehicle. Since that is unlikely in an older vehicle, a FMV is established which is then paid to you.

If you disagree with the value you are offered, it is up to you to contest it and prove it to be inadequate.

note: listed prices from dealers are not proof of market value. They are intentionally inflated so you can negotiate for a better price and feel better about yourself. Actual selling prices are the true indicator of market value.