QuestionMy car was totaled in an accident 1 1/2 months
after I purchased it (1400 miles), I was not at
fault. The insurance company has offered me an
amount well below what I paid for the car new.
Is this legal and what recourse do I have?
AnswerInsurance rights car accidents totaled repair valuation
REPAIR USED and/or NON-Original Manufactures' Equipment (NON-OEM) PARTS
TOTALED CAR buy salvage re-title
Research highest actual cash value totaled car
Most money totaled car high fair market value
soft tissue injuries car accident
whiplash pain weeks later after accident
how to claim for pain and suffering
Managing Medical Care After Auto Accident
Insurance Claim Adjuster Secret Tactics
Relationship Insurance Injury Claims Adjuster
Write to insurance settlement adjuster
Dear "J",
Sure, offering you dirt for your car is "legal", IF you accept it! Fight for what your rights are by learning five 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. Finally we wonder how there can be such a significant impact without also causing you personal injuries.
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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 transaction you are discussing, the insurance company has to pay you the actual cash value of your vehicle. Your purchase price can be used as a piece of evidence to help establish the market value in your location.
But your 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 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!
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
I am a little worried that anyone with THAT MUCH PROPERTY DAMAGE likely sustained some pretty good trauma, and soft tissue injuries have a way of creeping up on you seven months later when you start to get active in your first summer season since the accident.
After a weekend of physical activity, you may notice a dull ache that night or the next morning, or for the next three or four days. If you were able to do these spring and summer activities before without the same kind of pains, then that is a sign that you have residual soft tissue damage, and we need to account for that in making your settlement.
Many people want to ignore that little nagging pain that comes after a full day at work or after doing spring or summer yard work or other outdoor activities. They do not realize that often times soft tissue injuries do not manifest until weeks or even months later.
There may be a dull ache at night following some physical activity or pain the next morning. DO NOT LET LITTLE PAINS GO UNATTENDED SINCE YOU DO NOT KNOW WHETHER THEY WILL CONTINUE OR GO AWAY. We all hope and believe that such little pains will disappear soon. But on the other hand, we have no way of knowing since this is the way serious soft tissue injuries can behave.
You can certainly report that the pains were noticed some time ago and that you felt they would go away. But if you have been active in the past and had no pains or restrictions on your full physical involvement, then you need to know that any pains you are having this year are likely due to traumatic injury to your soft tissues in your neck or back. Make a note of what you can recall of dull aches and pains in the past months following physical activity and—assuming you have never suffered this kind of pain before—let the doctor know that these were present only after your car accident.
No problem if you have no aches or pains out of the ordinary for restarting activity after a winter of inactivity. BUT, if there is some nagging pain that shows at night or the next day following activities you did in summers past, DO NOT IGNORE IT AS IT MAY WELL BE DUE TO YOUR SOFT TISSUE INJURY.
Naturally, insurance adjusters do not like to hear this, or even think it might be true. But soft tissue does not heal as it was before inasmuch as scar tissue lacks the elasticity of the damaged tissue.
If you do have such out-of-the-ordinary pains following physical activity, then by all means CHECK IT OUT WITH YOUR DOCTOR BEFORE YOU RESPOND TO THE ADJUSTER. You can open your own PIP claim or health insurance claim to pay for your medical or chiropractic expenses.
If the pains are new post-accident, then SEE A DOCTOR AND ATTRIBUTE THE PAIN TO THE ACCIDENT WITHOUT EQUIVOCATION. It is NEVER TOO LATE TO REPORT PERSONAL INJURIES FROM A CAR ACCIDENT http://www.settlementcentral.com/page0104.htm
Managing Medical Care After Auto Accident: http://www.settlementcentral.com/page0203.htm
"No medicine: no money"; medical costs increase value of personal injury claims http://www.settlementcentral.com/page0045.htm
And, of course, once you settle, that is it: no one will be there to pay for your future medical or chiropractic care; nor will you ever see another dime in pain and suffering money. By the way, did you know that getting an early settlement is a favorite trick of the insurance adjusters? Please see my website wherein we show Insurance Claim Adjuster Secret Tactics http://www.settlementcentral.com/page0092.htm
Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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
