QuestionMy 1999 Mercury Cougar was hit and totalled while parked in front of my house. I don't mind the fact that it was totalled. I don't want it back after its been cut and pieced back together. I do mind them giving me a check for a few thousand dollars and taking my car from me. The accident was no fault of mine. I paid the car off and only had thirteen thousand miles. I want to get paid for my loss and keep my undriveable hunk of metal to do with as I please. How can I make this happen??? Thank you in advance.
AnswerDear Christopher,
I would not be so quick to get rid of a 1999 Merc Cougar, even if it has been totaled. The auto body shop owner is a good person to talk to about the repairs and the stability of the car. I will bet that they can get your car running in SAFE working order, and with only 13,000 miles, it is a gem of a car to keep. Also, thank you for driving an American-made car; it is good to be an economic patriot.
Here are the three choices you have when it comes to keeping an older car that the adjuster is undervaluing.
Three Ideas When Adjuster Undervalues Your Vehicle
• First, consider lowering the repair cost by repairing with USED and/or NON-Original Manufactures' Equipment (OEM) PARTS and stipulating to ignore some cosmetic damage; that will allow the insurance company to do the repairs within the percentage of allowance of actual cash value that it has already specified; OR
• Second, buy back the car from the insurance company as salvage, repair it, re-title it, re-license it, and KEEP YOUR CAR; OR
• Third, fight the actual cash valuation with your own research and communicate in writing.
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1. Lower Repair Costs With USED and/or NON-OEM Parts
SAVE YOUR CAR FROM BEING TOTALED BY REPAIRING WITH USED and/or NON-OEM PARTS and STIPULATING TO IGNORE SOME COSMETIC DAMAGE.
Before we get started, have you thought about keeping your car? Many times people have put a lot of money into maintenance OR EXPENSIVE REPAIRS (i.e. new transmission) in a high mileage vehicle, and they KNOW what they have will work as reliable transportation for them.
Have you considered whether or not YOU want your car "totaled"? Do you know whether or not the money you will receive will buy you anywhere near the same quality of transportation that you enjoy with your present vehicle?
It sounds like your vehicle is a good one to keep, Christopher. It has super low miles, and it is in good shape. Will you have to incur a loan payment to get adequate transportation?
What if you put a lot of money into repairs and new parts in the past 18 months? You will not get that money back in cash value of the car, but the repairs may have made your vehicle desirable to continue operating.
So, rather than taking the low offer of cash and trying to find a vehicle that will be reliable, they put the money into fixing the wreck with used parts, leaving aside cosmetic damage (who cares if you drive an eleven year old car with some bumps and bruises -- especially when that will reduce the repair bill a ton??).
So the first thing, if you are happy with the performance of your car, or if you have put a lot of money into maintenance or repair, would be to explore ways to keep the car.
Ask what the body shop would charge to repair your vehicle with USED and/or NON-OEM parts. You can negotiate to leave some cosmetic damage showing to save money. I would not be surprised to see up to 45% come off their repair bill in that case. If you have a car that was running fine, why not keep it, even if you have to drive around with some dents showing?
Find out the maximum amount that the insurance company will pay for repairs before they elect to total your vehicle. Then arrange for your repairs to be done within that limit. This is my first choice and better if you can make it happen. If the adjuster still wants to total your car, then you have to go to the next step.
2. BUY BACK CAR FROM INSURANCE COMPANY, REPAIR IT, RE-TITLE AND RE-LICENSE IT, AND KEEP IT. YOU GET YOUR EQUITY, LESS THE SALVAGE VALUE THAT YOU PAY TO BUY IT BACK AND THE COST OF REPAIRS PLUS INSPECTION AND RE-LICENSING COSTS.
Here is one way to get the insurance adjuster at her own game. Let's say that you value your car at $6,500, but the insurance adjuster, after considering the latest documentation you have to offer, values it at only $5,000. Don't forget, that is her value BEFORE THE ACCIDENT.
The salvage buy back price is usually about 10% to 15% of the value that they assign, so maybe it would be around $700. That means that they would pay you $4,300 and you keep the car.
NOW, if you were to pay that amount and then to set up the repairs to be done with USED and/or NON-OEM PARTS, and perhaps forgoing some of the strictly beauty finishing items, you could get repairs done for a lot less than the estimate given to the insurance company. Say, around $3,600.
Try to avoid having the title being reported as totaled since that will require you to get the car re-titled. You will have to take it to the state patrol to be inspected as a salvaged vehicle. You will need paperwork from both the insurance company and the auto body shop that confirms both the amount you paid for the salvage, the fact that you are authorized to title the vehicle, and a receipt for the work and parts from the auto body shop. You pay for the inspection and then the re-licensing through the Department of Licensing.
So leave aside around $100 for the state inspection, plus the cost to get new title, license plates, and tabs. The cost for the latter will be the same for any other vehicle of the same price as your salvage buy-back price.
In summary, you got $4,300 cash for the car, and you paid out $3,600 to get it repaired and ready for inspection and licensing, which are $100 and $160, respectively. Thus, your total out-of pocket outlay will be the $3,600 plus the $100 plus the $160, for a grand total of $3,860.
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3. Fight Actual Cash Value and Present Your Own Research, and COMMUNICATE IN WRITING.
OK, if neither of the above two ideas work for you, then go for a higher cash value. So, changing topics back to how to get that value up for the insurance adjuster, let's get started for you. The first tasks are to get at the actual cash value and next throw out whatever kind of outrageous offer they will make to you.
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 300 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. You can use information from local papers, advertising flyers, car dealerships, and the Internet.
Be aware that the prices shown are the "asking" price, not the actual cash value. But also be aware that the insurance adjusters have used a computer scan of sales that were at the trade-in value, NOT the actual cash value.
If you have made major item replacements, 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
In the case of your Merc Cougar, I used autotrader.com and I selected “unlimited distance” and the results showed a goodly number of vehicles worth around what I put in for your value above. Thus, if you do wish to get rid of the car, you could fight for a higher value.
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4. Final Topic: Communicate in Writing—“DEMAND”, Don’t ASK
Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra 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
