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Insurance - Total Loss negotiation
Old 01-13-2023, 08:44 AM   #1
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Insurance - Total Loss negotiation

Looking for wisdom and experience. Car was rear-ended, thankfully no one was badly injured. But the car was deemed a total loss. After some back-and-forth, the insurance company of the person that hit us, has given their final valuation, which is based on actual cash value vs replacement. To buy a similar car with similar mileage, their value is at least $1000 low.

The used car market is crazy high right now with limited availability... I had pretty low miles, which makes it hard to get good comps.

So the question is... what are my options and what have you done in this situation? The insurance company has moved a little on the value, but they seem set after multiple reviews.
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Old 01-13-2023, 08:50 AM   #2
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one option is to take their offer with the addition of you keeping the wrecked car. Then you can either sell the totalled car (yes, there is value there) or have the wrecked car repaired. Many/most(?) auto body shops play the insurance game and will charge you (out of pocket) a lot less to fix your car than if the insurance company was picking up the tab. I have even had offers from the auto body shop (employees) to by my wrecked car. This has been my experience. Good luck.
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Old 01-13-2023, 08:59 AM   #3
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What is your insurance company doing for you? You should find the best comps for your car and stick to that; don't settle for less. You are the innocent party here. Save those comps and send to the insurance company. Of course the paying insurance company does not want to pay any more than they have to. If it comes to an impass where they won't give fair value, get a lawyer to fight on your side. But your insurance company should be fighting for you.
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Old 01-13-2023, 09:11 AM   #4
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Originally Posted by 38Chevy454 View Post
If it comes to an impass where they won't give fair value, get a lawyer to fight on your side.
To get a lawyer involved will likely cost more than the $1000 differential.

Quote:
But your insurance company should be fighting for you.
Completely agree. Our auto insurance company, which is generally extraordinarily good, disappointed us when we had something similar happen, and I was extremely mad at them when they didn't and refused to get involved and they should have. We ended out taking care of it on our own with the other guy's insurance company, but we should not have had to.
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Old 01-13-2023, 09:30 AM   #5
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Have you actually looked for a replacement car
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Old 01-13-2023, 09:34 AM   #6
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I have read about this: https://www.globemw-ai.com/newsroom/...dent-adjusters. That's all I know, though, but it might be worth checking it out. Also, if you have an independent agent, they should be going to bat for you. Hopefully you are not buying from a tied agent. A tied agent will provide only lip service.
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Old 01-13-2023, 09:39 AM   #7
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What percentage is the $1,000 difference ? As $1K out of $10K is a lot, but $1K out of $50K is pretty small.

With a rear-end , depending on the car, there can be a large amount of value (the engine is probably perfect, maybe the tranny too. Both large expensive items. On the other hand, someone not inclined or mechanical would find it a pain to part out a wrecked car.
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Old 01-13-2023, 09:54 AM   #8
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Just to add to this, if the car is a total loss and they offer you a settlement then they want the car (at least my insurance did on my car)


They sell the car and recoup some of the money...


With my car the salvage value was $4,500... I took the cash...


On my son's car the salvage value was $1,000... we kept the car, took the lower amount of cash and had the car fixed with junkyard parts... which you cannot do through insurance...


As for your question, both times I was offered less than what a replacement car would cost... they actually looked up the cost of a replacement and then discounted it by 8 to 10% which they claimed was the actual price of the car, not the published price. Your only option is to get a lawyer.
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Old 01-13-2023, 09:58 AM   #9
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As for your question, both times I was offered less than what a replacement car would cost... they actually looked up the cost of a replacement and then discounted it by 8 to 10% which they claimed was the actual price of the car, not the published price. Your only option is to get a lawyer.
Count on the lawyer raking off a %. You may not end up that much better off.

DS was a claims adjuster in this area for years. Typically they use software to do the estimate so maybe the software doesn't reflect reality for your situation. I'd suggest instead threatening to file a complaint with the Insurance Department in your state. Those get tracked and companies do not like to rack up a high complaint rate. If they tell you to go ahead, well, then, they may have really made a fair offer.
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Old 01-13-2023, 10:20 AM   #10
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... As $1K out of $10K is a lot, but $1K out of $50K is pretty small. ...
Gee, on my calculator it's $1K either way.
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Old 01-13-2023, 10:31 AM   #11
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Depending on the amount sought - small claims court.
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Old 01-13-2023, 10:54 AM   #12
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Can't say if $1000 is too low or not, if looking at dealer ads and even private party ads, those prices typically have some wiggle room and may then trim $1000, and maybe more, from those car prices.

Something to consider is if you'd have to pay tax on a replacement purchase. Be sure that is factored into the negotiated offer.
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Old 01-13-2023, 11:32 AM   #13
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Gee, on my calculator it's $1K either way.
I'm hoping you were trying to me funny.

Sunset specifically said "What percentage is the $1,000 difference ? As $1K out of $10K is a lot, but $1K out of $50K is pretty small."

Math is hard.
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Old 01-13-2023, 11:37 AM   #14
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I had a total loss last year. I found out the valuation was not in my area. I live in STL but they had very rural area value. I didnt see it first, but later looked it closely it was like that. I found better value in my area and could increased the value. also, I had to report to BBB because their rent reimbursement was illogic. BBB contact made the process much easier because the case manager was so slacker.
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Old 01-13-2023, 11:38 AM   #15
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Are they paying you for a rental car while yours is down ?

Are they following up to see if anyone in your car was injured ? Don't sign anything.
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Old 01-13-2023, 11:53 AM   #16
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I'm hoping you were trying to me funny. ...
Yes, of course. But also to make the subtle argument that percentage is not a good way to look at things like this. I think the OP ought to go after his money regardless of what it is as a percentage. $1K spends the same regardless. For a personal example in our market, car dealers attempt to charge a $100 +/- "documentation fee" when you buy a car from them. It's completely bogus, but pre-printed on the sale contracts. Regardless of the value of the car, my first act when sitting down with the F&I guy is to cross that charge out. I would much rather keep that $100 in my pocket than to put it in theirs. From that point amusing discussion ensues, but eventually they cave.

A place where the OP can make the percentage argument, though, is with the insurance adjuster. "Such a small percentage ... " arguing to get his $1K. People do tend to think that way. IIRC behavioral finance guru Richard Thaler uses this as an example in his book "Misbehaving."
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Old 01-13-2023, 12:08 PM   #17
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Uncle’s insurer should be more involved and helpful in this situation. Might it make sense to hire a public adjuster to get a more precise assessment of the value of the damage?
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Old 01-13-2023, 12:37 PM   #18
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Thanks for the great responses! To answer some of the questions:

-My insurance company is taking a look at the proposal to see if they feel there is low-balling going on

-value of the car is $14K based on my research. So $1K would be ~7% of the value. Personally, I shouldn’t have to pay a nickel of my own money since the accident was not my fault. I’m already spending $$$$ in the form of my time dealing with this

-my car has low mileage, so comps are hard to find anywhere, much less my area. The few I’ve seen that are lesser cars (in my opinion) with the same mileage are close to my estimate

-salvage value is $3K. Car is still drivable, but frame is bent. Still driving it (sparingly)

-they did offer the taxes/fees on top of the valuation, so that is good

-injuries are minor, med bills are minor/modest, med. adjuster has been mostly fine, so I don’t foresee an issue there
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Old 01-13-2023, 12:49 PM   #19
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20 years ago my then husband was literally run over by a semi pulling out of a driveway onto a highway. Obviously the car was totaled. He amazingly wasn’t hurt at all. The driver seat was the only part of the car not crushed. It was a Saturn with the slippery surface and went under the semi partially, the skin of the roof peeled like an onion and spit him out. It was a gravel semi empty so sat up higher which is probably what saved him.

Anyway it was totaled and they didn’t want to give us the value so we got a lawyer. After the lawyer took his cut we got 7k and it cost us 10k to buy an older car with more miles so it wasn’t worth getting a lawyer.
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Old 01-13-2023, 01:54 PM   #20
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If you believe the car is worth $14K and they've offered you $13K, who's to say your number is more accurate than theirs? I wouldn't quibble over that amount, but you do you. Used car values change all the time, especially lately as car values are falling quickly*** (from unusual market conditions last year). You can look at it as the insurance company is low-balling you, or you can see it as the insurance company compensating you fairly while protecting the premium costs of all policyholders. Double edged sword.

*** https://www.jpmorgan.com/insights/re...ptember%202022.
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