QuestionI was rear ended 11/30/09 in a 4 vehicle wreck - not my fault. Got a letter yesterday from GEICO stating that I would have to take my vehicle out of storage - they would not pay fees after 12/15/09 (I got letter yesterday 12/21/09). To my knowledge they have not even looked at the car or contacted me in other way. I had severe neck strain/sprain. What is my responsibility concerning my wrecked car?? I don't know if it will be totaled or what.
Answer Hi Erin,
Storage costs are a hidden expense that can jump up and bite a vehicle owner. My guess is worthless because I do not know what kind of environment you live in. But storage costs seem to range from $25 a day to $50 a day.
So let's say it is $40 a day, just as an example. The adjusters use a transfer of storage cost responsibility as a weapon to make a quick deal on a totaled vehicle. But I will bet that was news to you, and so that has to be a REAL frustrating letter to receive. Duh—if you are going to cut off your storage obligation, then give me a couple of days to move my vehicle. Lets first take a look at what you can do NOW.
You have four choices, IMHO.
#1. First is to contact the adjuster and let her know that you have been waiting for their offer of payment for totaling your vehicle, and that you will be amenable to negotiating that value within a short time, and then the insurance company picking up the storage costs. You should have already done your research of market values so as to respond with facts once they give their offer.
You can fight the actual cash valuation with your own research and communicate in writing. My favorite sites for valuation are www.Edmunds.com and www.autotrader.com. They want to know your zip code, and then they ask for a range in miles to search. Don't limit yourself to your city: it is reasonable that someone could go up to 150 miles to pick up a used car. That way you will get a lot more information. Be aware that you should pick the option "any distance" from your zip code.
NOTE: to the contrary, if the adjuster's comparables are at a long distance, then you should add mileage and motel costs if necessary.
You can use information from local papers, advertising flyers, car dealerships, and the Internet.
Be aware that the prices shown are the "asking" price, not the actual cash value. But also be aware that the insurance adjusters have used a computer scan of sales that were at the trade-in value, NOT the actual cash value.
This is a report the adjuster will present to you with apparently FIRM values from local dealers. NO SUCH VEHICLES EXIST. Do your research on three of her examples and you will find that what they have done is to ask the dealers what their "take price" would be. This is NOT THE ACTUAL CASH VALUE. It is a made-up price that you cannot get.
Spend the time to read these articles by an excellent attorney on how the adjusters abuse the total valuations system.
http://www.stephencryanpc.com/Articles.shtml
http://www.theplan.com/documents/Ryanarticle.htm
#2. Second would be to move the vehicle ASAP and negotiate for the adjuster to pay for the storage charges up until two days following the receipt of her letter. That would be tomorrow. Then go about your investigation and fight for maximum value for the totaled vehicle, as above.
#3. Third, if you like your ride and you may not be able to get anything similar without making payments, then consider keeping the vehicle. You can do this in a few cases by lowering the repair cost by repairing with USED and/or NON-Original Equipment Manufactures' (OEM) PARTS and stipulating to ignore some cosmetic damage; that will allow the insurance company to do the repairs within the percentage of allowance of actual cash value that it has already specified.
#4. Fourth, this is an offshoot of above: buy back the car from the insurance company as salvage, repair it, re-title it, re-license it, and KEEP HER CAR. You get the vehicle at acheap price and then repair with USED and/or NON-OEM parts. There will be costs to inspect and re-title the vehicle.
Learn how to communicate with the insurance adjuster: FINAL TOPIC—COMMUNICATE IN WRITING AND "DEMAND" NOT "ASK"
FINAL TOPIC, Erin: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let her know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
