Auto Insurance Claims: Rebuilt Transmission., salvage yard, dollar increase

Question
Last week my 18 year old son rolled our 1999 Ford explorer.
Last August I had the Transmission replaced with a top of the line 7 year 75,000 mile Warrantied one. The Insurance has offered $550.00 adjustment for it. My concern is that I payed $2480.00 for it.  It has less the 5000 miles on it. I have found that used trans in its condition sell from salvage yard from $1800 to $2300.

Is this a fare adjustment?

Thank you for you assistants. Chuck

Answer
Hi Chuck,

Unfortunately, teh replacement of an engine or transmission does not add a dollar for dollar increase to the value of the vehicle. The reason is that it is assumed that the value of the vehicle already includes a transmission in good working order. So it is only an increase based on the potential extended life of the transmission.  Offers made by an insurance company are just that, offers. You should try to negotiate for some additional money, however considering what I just explained, about the best you could hope for is a couple of hundred more dollars.

I hope this helps
Richard Hixenbaugh