QuestionMy vehicle (5 year old Jeep Cherokee; excellent condition) was stolen 10 days ago. Thankfully it was recovered within a couple of days. I have a comprehensive auto insurance policy.
There was damage done to locks and the steering/ignition column, with estimated repair costs at around $1400. The adjuster is unwilling to cover the cost of a new replacement steering column (about $700) and is only offering to pay for a used one (about $200).
My local repair shop (who've serviced the car regularly) are unwilling to install a used mechanical component since they (a) have no assurance in its integrity and hence cannot provide their normal warranty on repair work, and (b) there is an increased likelihood that a used mechanical part will have an adverse effect on the vehicle's existing mechanical components (which are all in good condition).
Furthermore, installation of a component which is not from the manufaturer will invalidate the comprehensive warranty provided by the dealer.
The insurer has verbally offered to provide a guarantee on the repair work for as long as I own the vehicle, but has made no assurance about extending their liability to any other components which become damaged as a result of connecting to used parts. i.e. if I accept the adjuster's offer I essentially nullify my own warranty.
My auto policy states that the insurer may at their discretion use parts not manufactured by the original vendor (which I don't have a problem with), but does not state it is permissible to install used or reconditioned parts.
I believe I am entitled to a new part.
My local repair shop is, understandably, unwilling to install a used part. Given the safety critical nature of the part (steering column) I am also very reluctant to accept a used item.
What negotiating power do I have with the adjuster? If the adjuster requires that another repair shop be engaged to perform the work, can I insist it is taken to a Jeep dealer (all of course at the insurer's expense)?
I could pay out of my own pocket the difference betwen a used and new part, but I don't see why I should, on both principle, and since the difference is double my existing deductible.
Any advice gratefully received.
AnswerYou fail to mention the name of your insurance company.. would have liked to have known that to see if the carrier is a standard or sub-standard carrier. You also fail to mention the State you reside in... reason I mention that is most states have Fair Claim Practices Acts but they do differ from State to State.
Your policy/contract of insurance is an INDEMNITY agreement which agrees to return you to your PRE-LOSS status should you have a covered loss.. no better.. no worse.
In the instant matter that means giving you a 5 year old steering column or as close to that as they can get..
You are NOT entitled to a NEW column... if carriers were required to "replace old with new" you and I would not be able to afford insurance.
A used steering column from a comparable make/model is one way to go... assuming it has/shows average wear and tear (for a 5 year old column) then you will be back to where you started... with a five year old column.
Your company should be able to refer you to a Preferred Shop (one they refer their Insureds to) who will do the necessary and provided you with a guarantee for as long as you keep the vehicle.
The involved work is not all that complicated and a reputable shop should be able to easily and professionally do the job.
Your shop wants to install a NEW column so they can get the high mark-up for that column.. it's usually that simple.
Another way to go is with an after-market (new and made for your year and make but not by your mfg (OEM). You should ask your Claim Rep about that option to see if it exists.
Another way is for you to get a NEW column and for the company to deduct an agreed to BETTERMENT amount... let's assume that the column has a life expectancy of 10-12 years.... the betterment reduction (before and separate from your applicable deductible) would be 50-58.3%.
You can have the eventual repairs done at any shop of your choosing with the understanding that your carrier will only reimburse you for what they can get the work done for at their shop(s)... you would have to pay any difference in that instant.
You mention a warranty and your concern that you would invalidate that warranty.... without reading your warranty language I can't say if that is correct but I sort of doubt it.... suggest you call the warranty granter and ask the question and get a complete and direct answer... you might be pleasantly surprised. You mention that the vehicle is 5 years old so your warranty should be close to its end.. if that is the case don't get hung up on any potential warranty issue.
Speak with your Claim Rep and express your concern and displeasure and mention that you are considering filing a COMPLAINT with your State's Insurance Dept... that normally loosens up the purse strings...
Hope and trust that the above answers your quetion(s) and provides some direction.
Get back to me with any further questions/issues re this matter.
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Thanks
