QuestionI was in a car accedent and in there settlement they only want to pay me $600 for the $2500. of car repairs I had done the beginning of this year. Does this sound right to you?
Answer
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Dear Lynn,
It is difficult to give any opinion when I have so little information. What kind of repairs are we talking about?
Paying for a brake job and tune up and alignment and other maintenance items is a lot different than a valve job or head gasket replacement or transmission overhaul.
WHY? Because the market place will honor the latter with a higher price for your car since the latter items significantly extend the life of the car, whereas, the maintenance items simply give a short term benefit. Car Accidents: Totaled, Repair, Valuation, Your Insurance Claim Rights http://www.settlementcentral.com/page0007.htm
So, the key is to argue that your repairs would have resulted in a higher market place price of $1,800, NOT $600. Get some used auto dealers to state that and then cite them in your written response.
If you put all of that money into your ride and you are only going to get a small part of it back, why don't you try to save your car from being totaled?
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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 three methods.
The third choice is to let them total your car, but fight hard to increase the actual cash value. We will discuss those three in order.
A.) SAVE YOUR CAR FROM BEING TOTALED BY REPAIRING WITH USED and/or 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. Get car dealers to tell you how much your repairs added to the value. 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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BE AWARE: SOFT TISSUE SIGNS CREEP UP ON YOU: OPEN a MEDICAL TREATMENT claim with YOUR OWN AUTO OR HEALTH INSURANCE
Another topic is the probability that you sustained some soft tissue injuries. Your car was totaled. With that kind of property damage it is likely that there was more than sufficient trauma to cause soft tissue injuries.
Many people want to ignore that little nagging pain that comes after a full day at work or after doing spring yard work or other outdoor activities. They do not realize that often times soft tissue injuries do not manifest until weeks 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. 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
CONSIDER OPENING UP YOUR OWN INSURANCE CLAIM FOR MEDICAL TREATMENT WITH YOUR OWN HEALTH INSURER OR AUTO INSURER.
You have your own health insurance available and also your own auto insurance PIP/MedPay to tap into. Use those to get your health treatment going. And by all means, get your outstanding billings to your own insurance ASAP. NO, THEY CANNOT RAISE YOUR RATES FOR USING WHAT YOU PAID FOR.
You MUST continue and follow-up with medical or chiropractic treatments as soon as you can. DO NOT FAIL to get the care you need.
According to Our http://www.SettlementCentral.Com Members, Chiropractors are Most Effective in Severe Whiplash and Soft Tissue Car Accident Injuries http://www.settlementcentral.com/page8010.htm
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FINAL TOPIC—COMMUNICATE IN WRITING AND "DEMAND" NOT "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
