QuestionI was rear-ended almost 2 weeks ago. The other party's insurance agency assumed full liability, and the adjustor totaled my car. They offered me $5600 for a 2001 Ford Focus with only 50,000 miles. Since the accident, I've experienced neck and back pain, which has required several treatments at the chiro (the visits are being covered by my auto insurance policy's medical coverage). Additionally, they only gave me a rental car to use for 10 days. I turned it in yesterday, and now I am forced to bum rides, borrow cars, and ride my bike to work. I am unable to find anything used that is available in the area for the amount of $$ they are offering. My car only had 3 payments left on it when it was wrecked. Is there any way, in your opinion, that I can get more $$ from the other insurance company for my pain, suffering, and inconvenience? If so, how do I go about this, and who do I deal with at the insurance co.?
Currently, my case has been turned over to their total loss department, which deals only with the cost of the totaled car, and I don't even know where I would go.
I refuse to send them the title to my car and close the case before I've investigated all my options. Thank you VERY much in advance for your help!
Corrine
Answer
Dear Corrine,
You are smart to hold onto your title; a quick check shows that their offer is FAR TOO LOW. I am going to give you three options regarding your car: in two of them you can keep the car by working with your bank, and in the third option you do some homework to increase the actual cash value. REJECT THEIR INANE OFFER OUT OF HAND. Use your own insurance to get a rental car, since they have not made a good faith offer. Try to put the loss through your own insurance.
Then, EVEN MORE IMPORTANTLY, because much more money is at stake, I am going to pass along some information about personal injuries and how to make your own insurance injury claim on a do it yourself basis: 5 Easy Steps to Do-it-Yourself Insurance Claim Settlement http://www.settlementcentral.com/page0102.htm
1. 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.
Here are the details on those three choices I told you about. You will have to work with your bank on these, but they should not object, given that you are nearly paid off. IT IS WELL WORTH THE TIME AND EFFORT HERE inasmuch as you stand to save thousands of dollars and to keep your car.
A.) SAVE YOUR CAR FROM BEING TOTALED BY REPAIRING WITH USED and/or NON-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 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 FIVE 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. You will have to work with your bank on this, but they should not object, given that you are nearly paid off.
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 $9,000 (which shows as an average value on autotrader.com), but the insurance adjuster, after considering the latest documentation you have to offer, values it at only $5,600. 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 $5,600. 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 ESTIMAT GIVEN TO THE INSURANCE COMPANY. You will have to work with your bank on this, but they should not object, given that you are nearly paid off.
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.
Maybe 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 the above 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
2. 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. 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
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
"No medicine: no money"; medical costs increase value of personal injury claims http://www.settlementcentral.com/page0045.htm
3. DO NOT SETTLE YOUR PERSONAL INJURY CLAIM UNLESS YOU ARE ABSOLUTELY CERTAIN THAT YOUR SOFT TISSUE INJURIES WILL NOT REAPPEAR ONCE YOU STRESS YOUR BODY WITH PHYSICAL ACTIVITIES. That Plays Right Into an Insurance Tactic Regarding Inducing Early Settlement of Injury Claims.
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
Here is another page from my website that shows in detail why you should never make an early personal injury insurance claims settlement http://www.settlementcentral.com/page0211.htm
I am a little worried that anyone with THAT MUCH PROPERTY DAMAGE inside the car likely sustained some pretty good trauma, and soft tissue injuries have a way of coming back to haunt you later when you start to get active in your first summer season since concluding your treatments.
I am also worried that the insurance adjuster will just offer a small sum "for your inconvenience and any aches and pains you might have." DON’T TAKE THEIR MONEY TOO SOON.
4. LEARN ABOUT PERSONAL INJURY INSURANCE CLAIMS AND INSURANCE SETTLEMENTS
Use a Confidential Personal Injury Diary for TOP DOLLAR Insurance Claim Settlements http://www.settlementcentral.com/page0208.htm
Make darn sure your doctor does have updated full information in her records, or the adjuster may not give you credit for what you have been through. Personal Injury Medical Records http://www.settlementcentral.com/page0114.htm
Finally, I want you to be an effective communicator of your demand for settlement. Don't just call up the adjuster and start discussing your demands. Instead take the time to make your own demand letter—that is one step that will really pay dividends for you. I cannot tell whether or not you sent a formal demand letter. But it is best to think about that now if you did not.
Write Effective Personal Injury Insurance Demand Letter http://www.settlementcentral.com/page0170.htm
5. DO IT YOURSELF INSURANCE CLAIM ADVANTAGES
Why should you pay someone one-third to do what you can do yourself? Do-It-Yourself Personal Injury Claims; Eliminate Personal Injury Attorneys' Fees; Save Thousands of Dollars Settling Your Own Insurance Claim http://www.settlementcentral.com/page3011.htm
This stuff is not rocket science, but it will take some effort on your part to read and cut and paste letter examples and to communicate. But hundreds of people are doing it each day, and they are getting good results.
What if you get only two-thirds the way to your settlement goal? Well, you can get as big a settlement as you can and then turn it over to an attorney and save a lot of fees. Thus, you could go it alone just to get an insurance settlement offer from your own company, and then take that insurance settlement offer to a personal injury attorney, thus exempting the amount of the offer from her fees. Do It Yourself Personal Injury Settlement Offer Reduces Personal Injury Attorney Fees http://www.settlementcentral.com/page0109.htm
6. FINAL TOPIC—COMMUNICATE IN WRITING AND "DEMAND" NOT "ASK"
LAST "SIDEBAR" TIP:
Communicate with the adjuster in writing, showing your own analysis of value. It is fine to speak over the phone, but have your 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.
http://www.SettlementCentral.Com
