Questioni have a 2004 Pontiac gto fully loaded with the premium trim package. my car was parked and got backed into by someone with state farm coverage, i have sent my car to 2 body shops (one was the dealer i bought it from) and now they want to total it off. state farm says this car is only worth about 16000 dollars, it only has 3800 miles on it and was in perfect condition. they are only willing to pay what i still owe on the car not what it might cost to replace or even cover anything else i have put into it. they wont even look at any receipts i have for any parts or work that has been done to it. for instance the new "bfgoodrich comp t/a" tires or 3 week old k&n air filter with a new cold air intake, and new twin disc B&m clutch, and new stainless steel hedman true dual performance exhaust. my insurance company has me appraise the car every year, to keep the actual value on record but state farm wont even look at the appraisal. they say its not an accredited state farm appraisal so it don't mean anything. the appraisal value on my car is 29,856 dollars. i need help please
AnswerDear Jay,
Thanks for buying American. I will give extra time to those who are economic patriots and support our middle class jobs. Plus, that is a fantastic car!
After the abuse you have suffered on this one small claim, do you really believe the President when he talks in support of the poor insurance industry? Of course not, because the insurance industry got to be the richest in America by screwing over victims every chance they can.
Any you are to be congratulated for fighting back. You will need to muster a lot of other evidence, as suggested below. DO NOT BE INTIMIDATED by the written "report" the insurance adjuster is likely using for valuation. It is just a BS computer product that DOES NOT HAVE ANYTHING TO DO WITH REAL CARS IN YOUR LOCATION. If you do your own research, you will be able to counter their so-called "report" with ACTUAL FACTS based upon real cars! Plus, you can get dealers to tell you how much additional value your add-ons would bring in the market place.
Now, let's see if there is any way to get you some help. I am going to approach your topic from five different standpoints.
FIRST, let's look at hiring an expert to help you. Why give up thousands of dollars of value when you can hire an expert for a few hundred dollars. Hire YOUR OWN Auto Collision Repair Expert for Repair Negotiations & Supervision—Diminished Value Insurance Claim Settlements http://www.settlementcentral.com/page0457.htm
SECOND, think of diminished value. The insurance company wants to total the vehicle because that way they will not have to pay for BOTH the repairs AND the diminished value. If your expert can get repairs for you, then you might also be able to make the claim for diminished value.
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
THIRD, learn as much as you can ASAP about the relationship between the adjuster and the auto body business because the solution here might involve working out a compromise on repair. 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
FOURTH, you can use some tips on trying to get some value for your add-ons, but note that YOU MUST PROVE THAT THEY WOULD INCREASE THE “ACTUAL CASH VALUE” of the car. You can do that by getting any dealer to comment on how much more the vehicle would bring with your add-ons. Here is some general information on how to get the most value for your damaged car: Car Accidents: Totaled, Repair, Valuation, Your Insurance Claim Rights http://www.settlementcentral.com/page0007.htm
FIFTH, consider these three options if you really like your car and they are not going to give you the value you deserve.
THREE IDEAS FOR COMBATING AN OFFER OF AN UNDERVALUED VEHICLE THAT THE INSURANCE AGENT WANTS TO TOTAL
DO NOT "JUMP" JUST BECAUSE THE INSURANCE ADJUSTER IS PUTTING PRESSURE ON YOU. The only time frames that are worrisome for getting a TOTALED CAR paid off are two:
• They can terminate the rental that they gave you once they make a fair offer of settlement for your totaled car; and
• If you owe money on the car and you are short for making the current payment, you might feel some pressure to get the settlement so the loan can be paid off.
Thus, you have NO OTHER INCENTIVE TO MAKE A BAD DEAL JUST TO MEET AN ARBITRARY DEADLINE. Make sure you get the best deal you can, which may include a DECISION TO KEEP THE CAR, rather than let them total it.
So, here are THREE CHOICES. The first two deal with keeping your ride. Many people elect to fight to keep their cars by using one of the following two methods.
A.) SAVE YOUR CAR FROM BEING TOTALED BY REPAIRING WITH USED and/or NON-Original Manufactures' Equipment (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 or the new add-ons that you mentioned, and they KNOW what they have will work as reliable transportation for them.
So the first thing, if you are happy with the performance of your car, and if you have put a lot of money into new stuff for your car, as you have, 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. I would not be surprised to see up to 40% come off their repair bill in that case.
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.
Of course, if you are negotiating to keep the car, and to repair it with used parts, then it would seem difficult to make a diminished value claim.
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 $30,000, but the insurance adjuster, after considering the latest documentation you have to offer, values it at only $16,000. Don't forget, that is her value BEFORE THE ACCIDENT.
One would have to consider the amount of damage done in the accident to come up with a salvage value, but it should be a lot lower than the value before the accident, which the adjuster already told you was only $16,000 (usually it will be around 10% to 15%). So, before you decide to total the car, ask the adjuster what the salvage value would be. That is the amount that the company will get for the car after the accident, in its post-accident state, without any repairs having been made. In this example, depending upon the cost of the repairs, the salvage value could be around $2,500. Hey, this is ONE advantage of having them give your car a low actual cash value: the salvage value should be pretty low!
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 THE REPAIRS DONE FOR A LOT LESS THAN THE ESTIMATE GIVEN TO THE INSURANCE COMPANY.
Plus, once the car is repaired, 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
In summary, people often make out pretty well by buying their car as salvage and by following the route listed above to repair and re-title the vehicle.
C.) THIRD, FIGHT THE ACTUAL CASH VALUATION WITH 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. That expert I suggested earlier will have a good method to find the highest actual cash value for you. But if you insist on doing it yourself, read on.
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.
Because you have made major item replacements or add-ons, you need to document them and ask for a review of those extras. 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
FINAL TOPIC: 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
