QuestionMy husband had an accident in our source of income, and the insurance company totaled the semi. The insurance company followed up with their poor attempt to offer an AVC. On this note, they used an outside source to run a market analysis of so called like vehicles and provided a midstream average to use as an offer. The bad thing is this company sourced vehicles that were not even close to mine. For example they provided different engines, transmission, length, etc. for this AVC. I did ask them how they got the information for what they did have, and they said it was provided by my insurance company. I asked who provided this information to them and I was told by me. WOW, I must have lost that day totally, because I nor hubby have ever discussed the truck's specifications with anyone. Then I found out they used an "appraiser" which obviously doesn't know the difference between 10 and 15 speed transmissions. Nevertheless, the insurance company will have a call requesting this person's qualifications and the inspection report they performed. In this same conversation I will be requesting an estimate for repair, but what I need to know is, who determines which payment method will be used under the Physical Damage Endorsement. My contract states the insurer will pay for "loss" at the "lesser" amount of a. Schedule of Covered, b. the ACV, c. the cost of repairing or replacing the damage with other proper of like kind and quality. I don't think they even have a repair estimate unless the appraiser provides this, which I will request a copy. But in the event they don't, how can they immediately offer the AVC? At this point, I already question the appraiser and the insurance companies practice's of not disclosing information to the insured. Do I have the right as the insured to demand the schedule of coverage as a payment method since it is stated in my contract. Further, I do not see anywhere that this is at their discretion, unless this is implied. I am also requesting they provide an allowance for lost income.Any other information you could provide me will be most appreciated.
Thank you
AnswerHi Cat,
Unless there is a provision in your policy for the payment of lost income they will not pay it. Insurance companies are well known for low-balling the value of, well, everything. Their job is to pay out as little as possible while at the same time making you think that they did you a favor by paying anything at all. Regardless if you are dealing with your own insurance company or not. You should never trust any claims adjuster to pay what is owed.
Once an insurance company has made an offer that you disagree with, it is your responsibility to prove them wrong and negotiate a better settlement. You can request a copy of the repair estimate but since they have declared the vehicle to be a total loss they do not have to give it to you. The way most policies are written the decision to repair or total a vehicle is totally up to the insurance company. If there is $100.00 in damage and you file a claim with your insurance company they have the right to declare it a total loss and there is nothing the vehicle owner can do about it.
You can research the value of your vehicle your self. Locate similar vehicles for sale on the internet or in "Trader" magazines or websites such as www.trucktrader.com . Find the closest matches to your vehicle you can based on year, make, model, options, mileage, ets. Find 5 to 10 matches and average the value. This will give you a good average value. Then you can use this information to try to negotiate a fair settlement. You may want to hire an independent appraiser to assist you in appraising your truck. If you do this be sure it is someone that specialized in heavy equipment and/or big trucks and be sure that they do not regularly do work for the insurance company you are dealing with so there is no conflict of interest.
Uliimately, if you stand your ground you should achieve a better settlement.
I hope this helps
Richard Hixenbaugh
