Was rear-ended....

Indiana.....
I was rear-ended and my 2006 CHRY 300 was totaled... I received a check for partial payment of approx. $6500.00. They later offered me $16,114.00, less the previous check issued, saying my car was worth only $15,000.00, with the remainder being sales tax. I did not accept this because I believe my car was worth about $2000.00 more. My question is,"would it hurt to deposit this check and continue paying my payments"??

I just did a look up on Kelley Blue Book, assumed a vehicle w/30K miles in Indianapolis, and value ranged from 10.5K (fair condition) to 12.7K (excellent condition.

Didn't know the specific model you have, or any of the options, so that could obviously change it as well. On the surface, with the info provided, could be a very reasonable offer.

What is the basis that you feel the car is worth more, and have you provided that info to the insurance company?

1. If you're still making payments, that check you have should have been made out to you and your lien holder... So I'm not so sure how you can deposit it in your account without their signature.

Also, are you saying that you never notified your lien holder that (their) car was in an accident and was later totaled? Had you done that, your lien holder may understand that you will not be making payments until you receive a full settlement!

Lastly, and unless your 2006 Chrysler 300 is fully loaded with low mileage and in extra clean condition, $15k + tax seems to be a fair amount.

Rear-ended...

I checked with my insurance Co. who directed me to nadaguides.com. The results of which were "clean retail" $17,650.00 - $300.00 @75000 mi., + $1560.00 @5% sales tax = $18,910.00. Yes it was very clean, loaded, w/awd and hemi. I have not informed my lender of the accident. I will do this emmediately....anything else??
Thank you,
Jim
CHRY 300C AWD/Hemi

Rear-ended...

The check is made out to me only.....$7,644.57....Also says, "payment under property damage coverage", on the check...

You won't get retail prices on insurance claims, just like you wouldn't get retail prices if selling to a private party.

The value you get is if you were going to trade the vehicle in. There's usually a 2-3K swing between what a dealer will pay you for the vehicle (usually lower than what you can get private sale), and then what they will turn around and sell it for retail (higher than what you would buy private sale).

Run your numbers again, using your area and model/options/mileage and location, compare the tradein and private party sale prices amongst Kelley, NADA, and Edmunds. You'll also never get excellent condition, it's usually fair or average, at best. That will give you a pretty realistic range.

You need to check anything written on the check or any associated literature received with the payment. Generally, cashing an offer they deem complete is associated with a release. Once you release the claim, that is the end of it.




You also should realize that virtually no car is retail ready and is more accurately priced at trade-in or, if available, a private party value. The retail value is a clean car after all prep has been done to make it retail ready.

Have you contacted the other parties insurance company to discuss this? Have you asked your insurance company, point blank, what they would offer in such a situation?

Rear-ended...

They made me the offer in writing of $16114.00 less the check that was already issued to me.

Nadaguides.com rated the trade in value @ $14, 075.00....this seems unfair to me as I had no intention of trading it.

Thank you for your thoughts....
Jim

well, you can always refuse. If they will not negotiate, you can then sue the at fault party.

If you have a leinholder, you need to inform them that their collateral is totalled and arrange payoff of your loan.