QuestionQUESTION: Hi
You are the answer for my prayers. Yes, I have been in distress and searching
for answers. Since most of my friends do not have much experience with this
type of problem I pray and pray and for guidance. And there you were!!!
Thanks for doing a great job helping others.
This is my case. I was involved in a car accident in NJ and proven not to be at
fault.
Farmers insurance and I are trying to come up with a fair price but I am not
happy with what they offer. I have a 1995 Cutlass Supreme Oldsmobile with
146,000. The car was in superb condition. Even when the 1st adjuster came
to evaluate it, told me he had not seen a car in such a great shape for a 1995.
My car looked like 4-5 years old. I guess the red paint color is as vibrant as
when I bought it, the interior are clean and in good shape as a newer car.
They are offering me $3165 if I do not keep the car if I do keep it then they
take about $250 off. The repairs on the car are about $5000 so I am trying to
get as much. I lost my job a couple of months ago so I can not afford any
debt since I have a condo mortage.
I asked the 2nd Adjuster" total cases" if I can get reimbursed for loss of use.
( I rented a car for less than 24 hours but Farmers would not cover for
insurance so I had to give back the rental because I can not afford that and I
do not have collision in my policy)
He said he will pay me for 14 days of loss of use @$24.99. I think I am entitle
to 20 days minus 1 day I used. ( because I heard mentioning that number
before)
How can I find how many days it's required by law? He told me he is not going
to paid more that 14 because I just dragging my feet making decision if I
keep the car or not. I am not trying to take any money for me , I am just
trying to get more to come up closer to the repair amount. Can he say that?
Can he pay me for less days that I am entitle to?
I feel presure about making a decision. On Friday , I was so upset crying I had
to tell the adjuster I had to get back to him. How much time to I have to make
a decision? The nada guide rates my car at high retail price of $3375 and
that is not counting the loss of use. I was asking for 3800.00 but they are
offering much less. How else can I negotiate?
Thanks so much for taking the time to help others. May God bless you with
Abundance!
Elbaliz
ANSWER: Dear Elbailz,
Thank you for the kind comments regarding my work, and most especially for the blessing you gave. Also, thank you for driving an American-made car; it is good to be an economic patriot. In light of all of these factors, I am going to give your case a lot of time so you will be well informed. Here is the outline of my answer to you.
1. Rental Car Rules
2. Three Ideas When Adjuster Undervalues Your Vehicle
3. Lower Repair Costs With USED and/or NON-OEM Parts
4. Fight Actual Cash Value and Present Your Own Research
5. Final Topic: Communicate in Writing—“DEMAND”, Don’t ASK
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1. Rental Car Rules
The tortfeasor has to provide a rental vehicle for only a reasonable time to allow for repair of the vehicle or after a fair offer to total the vehicle has been made.
REPAIRED VEHICLE. (This is NOT YOUR CASE, but I give this rule just for your information.) If the vehicle is going to be repaired, the shop will often just arrange for the rental via authority given by the adjuster. The authority will encompass all of the time the vehicle will be in the shop. Extensions of time are common when parts or repairs take longer than first thought.
TOTALED VEHILCE. This IS YOUR CASE. Rental allowances are due for a reasonable time after a fair offer to purchase has been made. In this case, you have not told me when within the fourteen days allowance the adjuster offered the money.
First, his money offer is NOT MARKET VALUE. So, we will fight that later on, or decide later on to go for the repairs for 60% of the auto body quote. But THAT topic of what to do next will be considered below.
First, we have to decide whether or not you get more time on the rental allowance. The first issue is decided in favor of the adjuster. Although his offer is not what you and I think is full value, IT SURELY IS WITHIN THE BALLPARK OF A “FAIR” OFFER for the total value of the vehicle.
Thus, the rental allowance starts to run from the time he gave you that offer. Most adjusters will give a few days after the offer to present data and negotiate something higher, plus time to get the agreed settlement check written and to buy new transportation.
Thus, one week of rental allowance beyond the date he made the offer is probably the industry standard for rental allowance. That would give the victim time to settle, to get the check, and to buy new transportation. You are NOT ALLOWED more than one week since the victim is expected to make his counter offer and to settle within two or three days and then get the check and buy a car within the remaining four or five days. The victim should already have all of his evidence to present for negotiations. You are not allowed to think about it or to go and take a week getting evidence of higher prices back to the adjuster. That is work that you are expected to have completed by the time he make his offer.
So, in this case, if he made the offer on the tenth day of his fourteen day allowance, he owes you at least three or four more days, in my opinion, since that is the time within which you should be expected to act.
On the other hand, if he made his offer on the fifth day of his fourteen day allowance, you have had more than enough time to accomplish what you needed to do, and he owes you no more rental days.
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2. 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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3. 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, Elbailz. It has lower 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. In your case, that should be around $3,150. 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.
B.) 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 $4,500, but the insurance adjuster, after considering the latest documentation you have to offer, values it at only $3,165. Don't forget, that is her value BEFORE THE ACCIDENT.
Since the adjuster has already told you that you can kept the car plus get $2,915 back on top of that, why not take that deal and work with the body shop to do the repairs for $2,600?
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 $2,600.
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 $2,915 cash for the car, and you paid out $2,600 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 $2,600 plus the $100 plus the $160, for a grand total of $2,860.
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4. Fight Actual Cash Value and Present Your Own Research, and COMMUNICATE IN WRITING.
Now, 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 that outrageous offer that they made 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 Cutlass Supreme, I used autotrader.com and I selected “unlimited distance” and the results showed a goodly number of vehicles worth A LOT MORE than what he is offering. Thus, if you do wish to get rid of the car, you could fight for a higher value.
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5. 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
---------- FOLLOW-UP ----------
QUESTION: Good morning Dr. Settlement J.D.
Thank you so much for the taking the extra time to go over my situation and
for the prompt response.
These are the dates I forgot to include.
4/5 accident
4/12 I opened a claim
4/13 Adjuster look at my car and took photos.
4/16 Adjuster approved car rental but referred case to another adjuster in
the
dept for Total vehicles. 1st adjuster did not tell me how much was to fix the
car. He said once he punched the numbers of what needed to be fixed his
system just told him my car is total. So I am going by what 2 body shops told
me it would cost. ($4,900-5,100 to fix it)
4/17 Tues 1st conversation with 2nd adjuster ( He was ready to take my car
away and made an offer) I just say I had to think about it.
4/18 Wed 2nd talk w/ Adjuster - negotiating price. Spoke about faxing
receipts for work done on car. But did not make any commitment.
4/20 Fri- Faxed receipts of repairs. Will just give me $20 extra for that. He
said the work had to be done within 6 months. ( I put new tires but 8 months
ago:-( so it does count. He said he can give between 5-15 of the value of
the repair. How does he knows what percent to use?
Adjuster seems annoyed I said I have to make a decision : "Salvage the car or
Total it" but before I answer that question I wanted to get a better amount for
my car. I asked him how many days of rental I was entitle but he would not
answered. He said he would not paid pass Friday. I just do not know what day
does that make it on his 14 days allowance.
If I am keeping the car then the 14 days he is offering of loss of use it's okay?
I really thought it was 20 days for what he had mentioned on our previous
conversation but maybe that was if my car was fixable?
Do I still have time to negotiate more? To write a letter since I am over the
amount of calls I should have made to him? Would it be okay to fax it? Today
it will be a week since he gave me his 1st offer. I do not know if I should keep
spending more time to just get another $200
I agree with you about my car. I am thinking the best it's to keep it provided I
will pass inspection with minor $ of repair. The driver's door does not open
and close properly and my window does not go down all the way. I have a big
dent on back panel but I do not mind driving it like that. The only thing is
that some mechanics would not do the job half way because they guarantee
their work.
One good thing is the if I did not understand the adjuster wrong , If I keep
the
car, the title and all that would not change, I just pay the salvage fee ( about
$250.00) When a car is Total and I decide to keep it, do I have to inspect it
and fix it right away? Or is it just paper work deducting the salvage amount
from the total? Is it allright to have my best friend finish the negotiating for
me? He is a male and maybe it will be diferent.In your opinion, $3290.00 after
paying the salvage fee it's a good settlement price? That's what it comes after
adding the loss of use and or repairs? Could I say plainly I want to keep my
car and get $3,500? I just does not know what to say to get more. I say It's
not enough money and he say it is...
I am sorry for writing so much. There is so much to learn. I am excited to
share with others about you and Expert. com
Have a good day and thanks again
Elbaliz
AnswerDear Elbaliz,
Thank you kindly for the gracious comments you left for me in the feedback forum. I surely do appreciate your letting me know that my efforts did make a difference to you.
Now, as to your new issues regarding the days of rental authorization versus quitting on your negotiations versus cost of re-titling the vehicle, etc.
I have no problem with termination of rental this Thursday, since that would be ten days (including the 17th) of authorization on a totaled car offer. If they give you Friday, so much the better. Fourteen days would be Monday, so they are in compliance with industry standards.
You seem to think that the rental car payment cut off is some kind of deadline. It is not. So do not give up a lot of money just because you feel afraid to go without a rental car. Once you settle out you will have your car in the shop a good time to get it fixed, and there will be no rental at all for that time.
NO, YOU CANNOT DELAY GETTING THE SALVAGE RE-TITLED and still drive it. IT IS ILLEGAL TO DRIVE A SALVAGED CAR UNTIL IT IS INSPECTED AND RE-TITLED. Of course, if you are not intending to drive it, but instead will just leave it sit while you spend your cash award or while you save for repairs, then there is no problem whatsoever in doing that.
JUST DO NOT DRIVE THE CAR or do so with the understanding you are risking a ticket if you get caught. NO, they will NOT be on the "lookout" for you; the police will have no idea your car has been salvaged, until you are stopped for a traffic ticket.
You can have your best friend do the negotiations for you. Just tell the adjuster he speaks for you. But don’t give up on yourself, either. You are doing a good job of pushing this through. No, I cannot give any opinion whatsoever on valuation of your vehicle. BUT, I can affirm for you that it is fine to state that you want “X” amount of money in your pocket, PLUS KEEP the car. Make him pay you inasmuch as he, too, wants to close out his file and move on.
Good luck!
Dr. Settlement, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
