QuestionQUESTION: My car was recently hit by an All State customer while parked on the street outside of my home. All State determined the car was totaled due to the cost of repairs. They subsequently offered me $8300 (tax included) for my 1998 Lexus SC400 after a report was generated by AutoSource. I found this amount to be unsatisfactory, given my car has 105,000 miles and is in "good condition", according to KBB's parameters:
-Free of major mechanical problems but may need some reconditioning
-Paint and bodywork may require minor touch-ups
-Engine compartment may have minor leaks
-Some cosmetic defects that are repairable, but is free of rust
-Minor body scratches or dings and the minor interior blemishes of normal wear
-Tires match and have 50% or more of tread
-Clean title history and will pass safety and smog inspection
-Some service records are available
This car had brand new $750 tires (still intact), I paid $1300 for the 90k service in May (timing belt, etc.), I have all service records, and the car had 0 issues before it was wrecked other than some minor cosmetic issues with the exterior (the interior is an 8/10).
That said, I am dissatisfied with the settlement offer that is based on the comparison to the "comp car", which was a car that had 50% more miles than mine (145k). They came up with a $990 differential to accommodate the lower miles on my car, but there was 0 adjustment for the condition comparison. Here is the breakdown, with my feedback in parentheses:
INTERIOR
Seats: Moderate Wear (minor wear, at best. NO cracks/tears)
Carpets: Minor Wear (correct)
Int Trim: Moderate Damage (NO damage to interior trim)
Glass: Good (correct)
Headliner: Good (correct)
EXTERIOR
Body: Moderate Damage (minor damage at best, NO cracks, holes, rust, etc.)
Paint: Moderate Damage (minor damage at best - minor scratches, dings, a blemish on rear bumper)
Ext Trim: Minor Damage (not sure what this means?)
MECHANICAL
Engine: Minor Wear (not sure?)
Transmission: Minor Wear (not sure?)
TIRES
Front Tires: Good (correct)
Rear Tires: Good (correct)
Now, my questions are: can I get them to adjust the quote based on the above mistakes? Also, with all of the valuation websites out there, what figures should I look at for a fair ACV? Here's what I've found so far:
NADA avg trade-in: $7,500
NADA clean trade-in: $8,925
NADA clean retail: $11,800
KBB good private party: $8,300
KBB excellent retail: $10,500
What should I be demanding here? At a minimum, I'll see if adjustments to the condition comparison tool affect the settlement offer. Regardless, it seems like I'm still far away from the asking prices of comparable cars on the market right now. Here's a nationwide search for a mix of years and mileages around the country comparable to my car: http://gyazo.com/0be01416e8076f627d78819aa3801d24.png
Hopefully this is sufficient information to be able to make an objective assessment!
ANSWER: Jason,
You have several options but the first is to get an understanding of some basics;
1. Making improvements to the vehicle are generally considered “maintenance” and with that said, the more you do will increase to pre-loss condition and the vehicle's value. In other words, instead of the vehicle being rated as fair or good, the vehicle may be rated as excellent due to the maintenance, mileage, condition etc. and that value would be relative.
2. Understand that insurers already have the money (derived from premiums and investments etc.) so every dollar they can save in a claim (reduce their pay-outs), that they should have paid becomes 100% pure net profit…so insurers are very motivated to make the lowest claim settlements possible as to maintain profitability.
3. As such Insurers often offer low-ball offers in hopes of settling claims but you do have several options.
a. Research and dispute their findings
b. Research their reference material and the company that prepared it to see if they have been sued for proving bogus information
c. Hire an expert to assist you in determining the correct Pre-Loss Value and
d. If you cannot get satisfaction you can sue the at-fault party directly
e. Make a claim through your own insurer (if you have proper coverage)
f. Depending upon state laws you may have a right to the “appraisal Clause” or other avenues of dispute resolution short of a lawsuit.
I would not let them move or take your vehicle until the settlement was reached. The additional costs for storage and such may encourage them to settle with you sooner than later.
I could write a book on this subject and to fully answer your question with all the variances would take far too ling herein. If you would like to speak with me I welcome you to call. Feel free to visit our website @ www.AutoDamageExperts.com for more information.
Thank you for the question and best wishes.
Barrett
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QUESTION: Thanks for your response, Barrett. While I am appreciative you took the time to respond, I did not see any specific answers / recommendations based on my specific situation, and most of the information you sent I already read from this article and other only resources: http://www.stephencryanpc.com/Articles.shtml
That said, I understand my questions may have delved into legal counsel, so I understand if that is not appropriate for this medium. Anyway, thanks again and I hope you have a great day! :)
ANSWER: The best advice I can provide is to find an expert familiar with Texas law and insurance rules and regulations.
I would suggest you call Shane Coker in Texas to see if he can assist you or refer you to one who may.
Shane Coker
Coker's Body Shop, Inc.
(205) 758-0604
Feel free to let him know I referred you.
Sorry I couldn't be of more assistance to you Jason. There are just too many variables due to state rules and regs. Thanks for understanding!
Good Luck!
Barrett
---------- FOLLOW-UP ----------
QUESTION: Hi Barrett,
Not really a follow-up question, just a follow-up. :-)
I submitted my above disputed line-items, and they readjusted the condition comparison and increased my offer to a tad over $9000. Right now my insurance provider (State Farm) is also doing a total loss assessment, and from what I've heard they typically offer higher values (possibly based on NADA) than the other insurance companies out there. I'll just end up taking whichever offer is higher and will avoid any court disputes.
Thanks again! I understand the difficulty in providing specific advice in my case.
AnswerYour welcome Jason but I would suggest whatever they offer you...you can likely get another $500.00 of you press it but then there is the hassle factor they rely upon!? State Farm may be higher but still low regarding a Fair Market Value. The only State Farm may have concern over if they settle with you is recovery through subrogation as the insurer will say they evaluated it too high!?
Best wishes.
