QuestionLast week, I arrived home from my evening jog to find my yard filled with police and EMTs and a strange car impaled into the side of my car (which was parked in my driveway). Apparently a gentleman lost control of his car, hit the curb on the corner of my properly, got slightly airborne, traveled 35 feet through my yard, and smashed into the side of my car, pushing it across my driveway about 18 feet.
My car was examined by my insurance company's adjuster. He said the car was totaled and offered a payment that I estimate is $1,000 to $1500 under replacement value. There was also some property damage to trees, shrubs, flower beds, landscaping timbers, garden tools/pots, a potting stand, a wheel barrow and the fence that he crashed though. He also smashed though my wood pile and there are pieces of wood everywhere (even on my roof!) The most vexing damage to my real property relates to my driveway. One side of the drive is concrete (which got partially smashed up and pulverized) and the other side is blue stone. Since all four side windows and the front window of the maniac's car smashed out on impact and one set of side windows and part of the windshield on my car got smashed out, there are literally tens of thousands of pieces of safety glass in the cracked concrete part of my drive and especially in the blue stone part of my drive. I have the same insurance company for my car and my home. I have complete collision/property damage coverage under my car policy.
My question is, should I pursue this though my insurance or the maniac driver's? What is covered under car insurance and what is covered under home or property insurance? What about the drive way? Unless it is completely removed and replaced or carefully encased in new materials (like Chernobyl's sarcophagus but less radioactive) there will always be safety glass popping up in my driveway. Can my or the other party's insurance be expected to replace or encase a driveway? What is the most effective and tactful way to question the adjustor's replacement value calculation? Do I need a consultant or attorney to coordinate this mixed bag of damages to my car and home? Any guidance will be appreciated! Mark
Answer
Car Accidents: Totaled, Repair, Valuation, Your Rights
Insurance Claim Rights totaled car undervalued
REPAIR vehicle WITH USED and/or or NON-OEM PARTS
Research highest actual cash value totaled car
Complaint state insurance commissioner
Effective communication insurance claims adjusters
Dear Mark,
I knew there was a good reason I don't jog! Guess you are lucky there was no pet or person about at the time.
First, unless and until you reach an impasse, I would work with the tortfeasor's company. You have deductibles to pay up front with your own company. There is no reason, however, why you cannot mix and match when it comes to the car versus the driveway and yard cleaning and repair. One company could do the car and the other the real property.
As to the totaled car, sure, offering you dirt for your car is "legal", IF you accept it! Fight for what your rights are by learning four things. First is a general introduction in the area of property damage, and next come three ideas of how to deal with a decision to total your car.
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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
In the proposed transaction you are discussing, the insurance company has to pay you the actual cash value of your vehicle. Recent purchase prices (if less than one year—the more recent means the more relevant), even your own, can be used as a piece of evidence to help establish the market value in your location.
But your own purchase price is not determinative. 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. 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!
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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 (i.e. new transmission) in a high mileage vehicle, and they KNOW what they have will work as reliable transportation for them.
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 a nine 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, and if you have put a lot of money into maintenance or repair, 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. You can negotiate to leave some cosmetic damage showing to save money. I would not be surprised to see up to 40% 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.
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 $11,000, but the insurance adjuster, after considering the latest documentation you have to offer, values it at only $8,000. 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 $8,000. 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 $1,500. 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.
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
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As for your driveway, you will have to contend with both the adjuster and the restoration company they hire. They will not understand why it will be a problem for the restoration company to clear out all of the glass, inasmuch as that is their expertise.
So, you will need to document the danger to them with photos or actual examples of how the glass is hidden in the rock. Even then, I do not see them agreeing to replace your driveway, or even to encase it as you propose. To get this done, you will need some opinion other than your own speculation. Your own opinion will not carry the day with the adjuster.
Thus, I would beat them to the punch and find your own restoration company. These are the companies that service insurance disasters, such as fires and the like. Get them to make an opinion that nothing less than replacement or encasement will be safe.
Then you will have some real ammunition. It they then give you a hard time when you present them with a report from your own expert, I would not hesitate to make a complaint to your state insurance commissioner http://www.settlementcentral.com/links.php
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
