Auto Insurance Claims: Questionable Settlement Offer, jetta gls, mileage allowances

Question
My husband was rear ended on Sept 29th in Los Angeles, California.  We received a total loss settlement offer from the at fault party's insurance dated Oct 22nd.  I contacted them about the vehicle being incorrectly classified as a 2001 Volkswagon Jetta GLS 4 door sedan vs. 2001 Jetta Wolfsburg Edition which has more standard and special features when identifying the components for the purpose of valuation allowances.  I then faxed them a receipt of recent maintenance/repairs and new tires.  I also provided them a detailed list of the vehicles package options and retail value, since their Appraiser didn't include the Power Sunroof and Heated Front Seats.  The re-processed settlement offer came back at a whopping increase of $57.07!  They applied a $100 credit for four (40,000 mile) tires which cost $447.94 and only had 12,659 miles of usage.  Is this a fair amount?  The 47,660 low mileage allowances were decreased from $2,290.00 to $1,610.00.  That's $680 less!  Can they do this?  The original market report was processed by CCC Value Scope and the second one is with Autosource which makes it harder to compare their adjustments and values side by side, i.e. Vehicle Condition via CCC:  All Normal, while Autosource rated them as, minor wear, new, minor damage and good.  Are these ratings lower then CCC’s Normal rating?  Shouldn't they use the same company?  CCC used and presented 16 comparables for their arithmetic mean.  Autosource used 39, but showed only 10.  When I average just the 10 listed, the market value is $1,011 higher.  There is only 1 Wolfsburg in the comparables from Autosource, is that acceptable? This model is hard to find because it’s a limited edition, doesn't that make it more valuable?  Autosource low balled all the allowances for extra features, didn't credit for recent maintenance and still didn't include the sunroof.  The NADA clean retail value is $1,182.96 higher than their offer.  Do I have a valid case to pursue for a better settlement?  If so, what is the best way to approach it?  The reality is I won't be able to purchase a vehicle that compares to what I had, but I shouldn't have to end up with a piece of junk.  Please advise.  Your help would be greatly appreciated."

Answer
Giesel,

Unfortunately, this is standard operating procedure for insurance companies.  Everything is interpreted in the light most favorable to their position.  They figure that a certain percentage of people (a large percentage actually) won't take the time to fight them and will just accept their nonsense.  Think of them as a schoolyard bully who bigger and stronger than everyone they deal with and just tries to push everyone they deal with around.  That's what makes my job so satisfying sometimes...

In any event, here's what I would do short of filing a lawsuit:

(1) Prepare a letter detailing all the discrepancies/problems in a detailed manner - maybe in a numbered list so you can address each item individually in the future.  

(2) Make sure the tone of the letter is logical and even handed (not angry) and try to state your position as rationally as possible.

(3) Provide as much backup documentation as possible in the form of print-outs from various valuation sources (kbb.com, edmonds.com, etc) and whatever else you can toi justify your position.

(4) In the final paragraph I would make sure that I asked for some result - a dollar amount in particular for the insurance company to make this right.  You probably want to go in a little high with your request because they are likely to negotiate you down.

(5) Send the letter certified mail return receipt requested to THE EXACT ADJUSTER that's handling your matter and copy both the adjuster's supervisor (you'll have to ask for his/her name) and the insurance board in your state.  (Do a search for "__________<your state> insurance board" and fish around for the address and individual to whom you should file a complaint - usually it's the commissioner of insurance.

(6) Thirty days after sending the letter give the carrier a call and see if they have changed their position.

This approach doesn't have the same effect as a good old fashioned lawsuit but it's worked for me in the past.  If your husband is injured you could also bring a personal injury claim to make yourself whole.

Best of luck,

-Ernest Ferraro