QuestionI was involved in a car wreck 3 weeks ago and my insurer just informed me that they will be writing off the car as a total loss. The price of the vehicle at purchase was $14,500 (I purchased it in June of this year), after my trade-in I financed $13,500 for a 2007 Pontiac Vibe with 32,000 miles.
The car now has 46,000 miles on it and they are offering me 13,100 for the price of the car and about $850 for sales taxes paid, minus my $500 deductible (if or until the other drivers insurance pays them back since he was at fault and cited for the accident). It works out that after the payoff on my car I get $1800 back.
I have put $1800 in JUST for payments on the car, plus the $1000 I am out for my trade-in value, the $900 I paid for sales tax and the $200 or so for insurance adjustments. If the wreck was my fault I wouldn't push the issue, but it doesn't seem fair that I've invested $3700 (atleast) into the car and am loosing half of it because of someone else's mistake.
I looked up the kelley blue book value after the accident because I figured it would be a write-off and it had $15000 or so listed for the retail price, but when I looked today at the same page it said $13000. Would the price have changed that much in 3 weeks? The only thing I could think of was maybe the '09 model coming out lowered the value of mine, but if that's the case I should still get the value of the car at the time of the accident. Is there any way to look back to that date and see if that was correct?
AnswerHi Kelly,
What you paid to drive the car until the accident is NOT compensable. You would have lost that money as of the date of the accident, in any event. For example, your car payments and lost depreciation are not compensable. Your license fees and sales tax will be paid to put you into the same position financially as before the accident.
Hence you are entitled to FULL NET (i.e. after paying off your loan) FAIR MARKET VALUE (FMV) of your vehicle. This is also called You ACTUAL CASH VALUE. And if you are not happy with their value "facts", then go an find your own facts that will rebut them and support your position. Often the cars that are totaled get valued at the lower end of actual cash value because the insurers use a computer service that does its magic behind the curtain.
There are a lot of examples where that service has been shown to be wrong, and in fact they have had substantial class action lawsuit judgments entered against them for defrauding the victims.
But we have no idea if that is the case here. All we can do is to go and find the facts ourselves. To do that, you started in one good place, but be sure to try some others, such as on the Internet, in newspapers, in the magazines at grocery stores, and by calling dealers. 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 200 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.
Be aware that the prices shown are the "asking" price, not the actual cash value. But if you gather enough examples, the judge will have something to go on for figuring out the value of your vehicle.
If you have made major item replacements or add-ons, above and beyond normal maintenance, you need to document them and ask for a review of those extras. For example, a rebuilt transmission or the like will add value to a used car. How about new tires or a new stereo system? The issue is: how much (if any) did they increase the FMV or actual cash value of the car. See this link and scroll to the bottom for more information on that topic. Car Accidents: Totaled, Repair, Valuation, Your Rights http://www.settlementcentral.com/page0007.htm
As for general repair bills, you do not get paid for maintenance and upkeep UNLESS YOU CAN SHOW THAT IT INCREASED THE ACTUAL CASH VALUE OF THE VEHILCE (aka fair market value). Different story if you added some equipment or put on new tires or replaced an expensive part that will increase longevity of the car. Fight for those items by getting a local used car dealer to tell you how much those expenditures increased the value of her car.
Do not be bashful about countering with a higher value than the adjuster, especially when you have a few examples of the higher value.
As for that one decline in value, no it is NOT usual. Maybe the newer sales figures reflect the later market conditions, which are soft because of the general condition of the economy. But, that example you gave IS NOT going to give you any hard examples anyway. It is just a compliation. You need specific sales examples, and lacking that, gather a number of examples of asking prices. Naturally the actual cash value will be somewhat lower than the current asking prices. Does that make sense?
With a little work you will be able to make a good solid counter to the offer.
I trust that my 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
