QuestionI was in an accident last week in which the other driver ran a stop sign. I finally got an estimate for my 2000 Dodge Dakota which has low mileage and was in very good condition. The repair estimate is $5295.80. Her insurance says they will total the truck because they say it is only worth $6100.00 and the repairs are more than %75 of this. I have looked up the value on nada.com and it shows $7300.00. The repairs are less than %75 of this, which means they would have to repair it rather than total it.
I have read for hours on this website and have done the research at autotrader.com and plan on emailing all of my research and the N.A.D.A. appraisal value to the insurance tomorrow to attempt to get them to raise their appraisal.
Now to my question. When I was looking at the repair estimate I noticed that they had $295 Towing charges listed. I thought this was a lot for towing so I called the repair shop. They explained that it was the tow charge from the accident site to the tow company's storage lot, 6 days storage, and another tow bill from there to the repair shop. I know that I should not have had it taken to the storage lot, but I was so shaken up after the accident that I didn't know where to take it. When the tow truck driver suggested the storage lot and said that the insurance would pay it I agreed to it, because that gave me one less thing to worry about.
I called the day after the accident to have it taken to the repair shop, but by the time they had a truck available to take it the repair shop was closed. This was Friday and the repair shop was closed for the holiday weekend, so it was not towed to them until Tuesday.
Now the accident happened on Thursday night. The truck was towed at approximately 8 p.m. When I drove by the storage lot at approximately 10 a.m. on Tuesday morning they had my truck loaded on a rollback truck ready to take to the repair shop. Thursday night to Tuesday morning is 5 days, not 6. Can they charge for the sixth day of storage even though it was out of the storage yard at 10 a.m.?
Also, I was very surprised that the tow charges were counted as part of the estimate. I knew that the tow bill and storage charges would be paid by the insurance, but I do not think that they should be able to count this a part of the repair costs. The person I spoke with at the repair shop said that they always do this. He said that since the truck could not be repaired without towing it that this is considered part of the repairs. This sounds wrong to me. Next thing you know, they will be saying the rental car fee is also part of the repair charge.
AnswerI have no idea what the arrangement is between your city and the tow yard regarding fees and what time the vehicle is picked up.
That is the only actual question in the text other than the subject question. The tow bill is on the estimate because that estimate includes all money that would be due to the shop. The insurance company can certainly deduct it from their total loss assessment, but the vehicle will likely still be considered a total loss.
The insurance company owes you the Actual Cash Value of the vehicle. NADA is not the Actual Cash Value. NADA is the "suggested retail asking price" and if you read the NADA disclaimer, it says this. The suggested retail asking price is what a dealer might ask for a vehicle sitting on their lot, fully reconditioned and often with a warranty. It is a starting point of negotiation for a dealership and most vehicles actually sell for 10 - 20% less than the asking price.
The insurance company has actually located comparable vehicles based on the actual sales price. They then make adjustments from the average vehicle for mileage, condition and options. The final number is the Actual Cash Value of a vehicle which is what they owe.
It is then the option of the insurance company to pay that figure or repair the vehicle,,whichever is less. They also have the right to add in rental and possible supplement considerations for hidden damage as factors in their decision.
It is unusual that I hear from vehicle owners who actually want a vehicle repairs vs. totaled. The exception is generally when they owe more to the bank than the vehicle is actually worth. This is why I always recommend the people purchase gap insurance to cover any loan balance should a vehicle become a total loss.
If you really want this vehicle repaired, you may consider moving the vehicle to a shop that is willing to repair it for less money and guarantee this with a contract. This, however is not allowed in all states.
This is all of the info that I can give you based on the information that you provided in your question.
Good luck!
