QuestionDear Dr. Settlement,
I was involved in a car accident in Jan 06, where the other driver paused and then ran through a red light, hitting me in the right front end and passenger door. She admitted fault to the officer immediately and then to the insurance company (we both have State Farm). My car is a 2002 Jetta. The insurance company recommended a repair shop that they would send the payment directly to, so I took my car there. They are very reputable. They came back with a $6K estimate. The insurance company said ok. In the end it was nearly $10K. 1 week after I received the car back (took 2 + months) I had to return it because the fender and bumper were out of alignment. I asked them to recheck the unibody, but they assured me it was fine. 1 yr later, the bumper started to come off and the skim plate fell off as I was driving through a parking lot. Brought the repairs total to over $10K. They told me it would have to reach $11,200 to total the vehicle- it was worth over $13K. Now, the bumper is beginning to peel away on that corner again and the fender looks a little out of align again. I have not run into anything. My husband and I decided to trade my vehicle in for a 2002 prius- we want to head in the direction of "green". I went to 2 different dealerships that told me that they would give me $6,500 for the jetta. They pulled the CarFax report and saw the accident and looked at the car. I owe $7,900. I contacted the insurance company to file a formal complaint, but they requested that they re-open the claim and try to take action before I filed a complaint. I got a call from the claims department saying that they would send someone out to take a picture of the car, and possibly would have to send it to a 3rd party. What else should I be doing to force the issue? What is the best I can expect from my efforts? I think it is totally unfair for me to end up in the red for a car that should have just been totaled! I appreciate your help!
AnswerHi Kari,
Please accept my sincere apologies for the delay in answering your question. I was not asleep at the switch: rather, I just had to put my beloved Peke dog, Sebastian ahead of all volunteer and other work. He recently developed a swelling and ulceration in his eye, even though he is only four years old. I spent a lot of time taking him in for care and eventually for surgery. Things will work out when they take off the patches. Side note: we should all be amazed at the talent the vets have: they can do any number of tasks, whereas human doctors are pretty limited. Anyway, thought you would like to know that I was not just ignoring you.
Now, on to your question.
I would work with the insurance company and let them try to resolve it. There are three reasons for this. First, in the position you now find yourself, making a complaint will be fruitless when the company has offered to make it right. What the insurance commissioner usually does is to refer the complaint to the company and hope that they will make it right. Well, you have already achieved that. Let them take a shot at it.
Second, you will get higher value for your vehicle if the car goes back and the deficiencies corrected. The value given by the trade-in offer is NOT the actual cash value (aka fair market value). Take a look at www.autotrader.com or similar sites to see what the ASKING price is. And follow along in newspapers to see the asking price. It does take a bit more to know the sales price, but in any event, what you find will be a lot higher than the trade-in offer. And of course you will not be penalized by shoddy bumper appearance since your car will be fixed.
Third, do not become confused by what you owe in comparison to the fair market value. Actual cash value is frequently less than the debt on the vehicle. It sounds like you feel that your debt should be relevant in the choice here. But really that is just a constant that you will have to ignore inasmuch as your best choices pertain to getting the best for your dollar in repair to increase the value of your vehicle. What you owe does not factor in.
Here are two more wrinkles to throw in. First, have you considered making a diminished value claim? DO NOT LET THEM TELL YOU THAT A DV CLAIM IS NOT ALLOWED INASMUCH AS THEY MAY BE TALKING ABOUT A FIRST PARTY (i.e. against your own company) CLAIM, NOT A THIRD PARTY (i.e. against the tortfeasor’s company) CLAIM.
Diminished Value—What it is and How to Make an Insurance Claim for a Cash Insurance Settlement
http://www.settlementcentral.com/page0455.htm
FAQ: Diminished Value Insurance Claims Explained in Answers by Doctor Settlement, J.D.—Auto Accident Insurance Claim Expert
http://www.settlementcentral.com/page0454.htm
Second, consider the posibiltiy of hiring your own expert to negotiate a settlement on your behalf:
Auto Accident Collision Repair Shops & Insurance Adjuster Relationships Explained in Answers by Doctor Settlement, J.D.-Auto Accident Insurance Claim Expert
http://www.settlementcentral.com/page0456.htm
Here is some additional information on how to handle auto body shops and insurance adjusters:
Hire YOUR OWN Auto Collision Repair Expert for Repair Negotiations & Supervision—Diminished Value Insurance Claim Settlements
http://www.settlementcentral.com/page0457.htm
That should do it for all you need to know to move forward with your repairs and possibly a diminished value claim.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
