Choices in settlement

[TeresaWDEG]

Our car was rear-ended a few weeks ago. The other party's insurance admitted liability. We filed a claim through our insurance. Our policy says the company can settle the claim in one of three ways:
1) pay up to the market value of the vehicle
2) pay for repair or replacement
3) take the car at an agreed upon value.

The policy says that it is the only agreement between the insurance company and ourselves. It does not define any specific way to determine market value. Am I right in thinking that market value is what a willing buyer would pay for that specific vehicle (same miles, year, make, accident history, etc.)? What if the different "blue books" Kelly's, Edmunds, Carprice.com, etc. differ in their estimates? Can I use the highest between them? Can I use dealer ads for comparison since people who buy from dealers are obviously willing buyers, or am I limited to "for sale by owner"?

Secondly, it seems to me that out of the above choices, that choice one is limited to their writing a check for damage to the car and that choice three means they are actually buying it. Choice one doesn't say anything about them getting to keep the car whereas choice three specifically spells it out. What if I don't want to sell it and never agree to any price? I don't think it is a total loss and want to add my own money to pay for the repair that goes beyond the "market" cost. If I do this the insurance company wants to deduct for salvage value and I would have to pay much more money out of my own pocket to have it repaired. Do I have the right to refuse to sell it and to get the cost of the estimate in full?

Our car was in excellent shape with few miles and excellent repair/maintenance and options that were important to us. I have faith that repairing it is better than getting an unknown. Do I have a choice in the matter?

Does it make any difference in dealing with
the other guy's insurance?

 

[lars coltrane]

Before getting into a long explanation, how much damage was done to your vehicle?

 

[TeresaWDEG]

First, thank you for your time in answering.

The damage estimate, so far, is up to $6200. It rose from $2500, to $4300 to $6200 as they began taking things apart. The price we found on the internet for sales from private parties range around $6800 and retail is about $9000. Its a 92 Aerostar extended van with large engine, etc.

I forgot to say also that we are in California, too.

 

[lars coltrane]

In theory you are to be paid the same amount that it would take for you to buy the same (or similar) car. Start looking in your local paper, recycler, whatever, for cars like yours that are forsale. That will give you the price of the car that the carrier should pay. You also get back your unused license and sales tax on the value of the car. Thus, in theory, you are able to get the same car for no money.

I say theory, because like anything, this is really a negotiation. You argue the car is worth more for your reasons and they argue it is worth less.

If you can get the other side to pay right away, go thru them so you will not have to pay for a deductible (and if done right, they will also pay you back or even direct pay for the car rental).

hope this helps

 

[TeresaWDEG]

Thank you again for your time. I am not quite clear yet whether or not I am forced to use the prices from a private party or from a dealer. You said it is all a negotiation and I see how that is true. I told the insurance company that I cannot buy a commercial warranty if I purchase another vehicle from a private party. To get the same amount of assurance in the mechanical condition of a replacement car as we had in our own car we would have to purchase this commercial warranty or find a private party who we trust and who has a complete repair/maintenance records like ours does. Am I forced to take the more inconvenient time-consuming option of finding such an ideal private seller or can I get them to use dealer prices? We have already faxed the ads for these cars from dealerships and they have ignored them. We have also sent copies of the complete repair/maintenance history. They have twice made offers using comparison vehicles that are the shorter model, with smaller engine and more mileage and these, of course, cost much less. Is there any legal "baseball bat" to back up my negotiating position? How would you put your knowledge and experience to work in arguing my position if you were me? Thanx.

 

[lars coltrane]

And people still think that an insurance co. will be fair if you present a claim.

I am not sure which carrier you have been trying to negotiate with. If it is your co. then you tell them that they are negotiating in bad faith; they have a contractual obligation to you to deal fairly. The lack of good faith is the fact that the offers are not even the same make, year and model.

If it is the other carrier, then you have to threaten to go to court; the problem is it takes a long time to get a resolution.

Be persistent. Make sure to explain that the comp's are not the same car as your car. Show them why your car was worth more. Also, if the claims adjuster is not listening, then ask for the supervisor.

let us know how it goes.

 

[TeresaWDEG]

Thank you very much for that idea. It is my own company and I feel that they have not dealt reasonably with me but I was not sure if it was serious enough to be classified as bad faith. I still am hung up on private party vs. retail. What do you think?

 

[lars coltrane]

I don't really think that it makes a difference. You should be able to replace your car. In other words, the money you should get in settlement is the retail value for the car - what it would cost you to replace, not what a dealer would give you in trade for another car (that number is always lower).

good luck

 

[Tracey]

Be stubborn! Keep in mind that Edmund's, etc. are national estimates of used car prices. Kelly claims to adjust for zip code, options, & mileage, but it's not too accurate. Ex: cars bring 10-25% more than the KBB average for NW Washington. LOW MILEAGE cars bring WAY more than KBB (like 100% more).

The ins. co. will try to use the lowest national average when deciding whether to repair or junk the van. You want to start scouring the car ads and looking at vans. Note options, condition, miles, price, etc. This is your best evidence of what it will cost to find another van with low miles & faithful maintenance. If you walk in with 4-5 examples of similar vans, you're more likely to get your price/repair. The more time you spend, the more accurate your settlement will be. You may even find a van that's just as good!

What is your claim agent's agenda here? Is s/he acting as your agent with the defendant's ins.co. because it will pay them? Why not file a claim directly with the defendant's ins.co.? As Lars said, you don't have to pay them the comprehensive deductable. Also, they might be more reasonable. (You just can't settle with both companies!)

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.