QuestionQUESTION: My car's engine compartment caught on fire (on its own) while the car was parked and everything shut down 2 weeks ago. We filed an insr. claim with AIG but the process has been a nightmare. The adjuster has been very vague in explaining the procss (even after I explicitly asked about it) and insisted I have the car towed to Copart (a salvage lot) before they can start evaluating the damages. Furthermore, the adjustor & his manager wouldn't tell me what Copart is, where my car will be towed to; never once did they mention Copart is a salvage lot. (I googled it to find out myself) The adjustor also got impatient with me & pretty much yelled at me on the phone. I am very nervous, as not sure if it'd be assessed as a total loss, how much $$ we can recover; in addition, the car is not in my possession and insr. company refused to give any evaluation unless I "release" my car to the slavage lot (Copart). Is this the normal process for processing a car fire insr claim? Please help. Thx.
ANSWER: Hi Jennifer,
Copart is a salvage yard that specializes in disposing of vehicles that have been totaled by an insurance company. Some companies have actual staff members located at copart who evaluate the extent of damage. If the fire caused extensive damage it will likely be totaled.
Also, in fire claims as well as theft claims, insurance companies are very vague withtheir information because they are looking at you as a potential suspect. The will do an investigation into your financial back-ground to fee if you had a financial incentive to torch your car. They will likely ask you for bank records and check to see if your car payments are current if you make payments on it. This is all normal. You should tell the insurance company it's ok to move the vehicle to copart. If it is totaled it's already in the right place. If it is not totaled they will tow the car to the shop of your choice for repairs.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: Thanks Richard for your answer. my insr company today all of a sudden changed their mind and asked to move my car to the Audi dealer to be assessed. They told me they changed their mind because the body shop (where my car was towed to by mistake) advised the adjuster it is only a minor fire damage. However, nobody from the insr company had even seen my car! (neither an appraiser or the adjuster) The said the body shop has expr in this matter and can give their opinion (or assessment?) whether it is a major or minor fire damage. I thought the appraiser was the expert in this matter? I have no choice but to have it moved to the dealership. My car is still under warranty and I contacted Audi America as well. They will send a rep to look at it as well. In the case of repair, would the potential loss of resell value (since there was a fire damage) be considered in estimating the total $$ damage to the car? Thx.
AnswerHi Jennifer,
Unless you live in the state of Georgia diminished value will not be taken into consideration. Georgia is the only state where you can collect diminished value from your own insurance company. In other states you can not so they will not even consider it.
Moving the car to the dealer is a good idea. The will likely do a better job of assessing the damage the the insurance company appraiser. An insurance company appraisers estimate is generally off by as much as 50%. So going to the dealer is the best thing.
I hope this helps
Richard Hixenbaugh
