QuestionQUESTION: I've refused to accept a check for my auto because I don't trust my insurance. I've asked why we can't get an estimate then work with the adjuster before writing a check to a body shop instead of going through supplement processes. I don't trust they will pay supplements.
I am told by the insurance company if the repairs are greater then the adjusters estimate, the amount the check to the body shop would be a supplement would be filed. I have asked for this in writting, or at the very least the process but they refuse to give it to me. All that is stated in writing is if the repairs cost more call us. It doesn't say they'll pay they supplement at all but they say they will over the phone. Should this be available to me & how do I get it? Why isn't it in writing if they say it over the phone?
In taking the auto to repair shops I am told it will cost twice as much as the insurance wants to pay me. If that is true then my vehicle should be totaled. Hail happened to a large area and body shops are booked and they won't send another adjuster to verify until the appointment for repairs. It won't be before December before I can get the repairs scheduled due to the amount of damage locally. I am concerned that once it's in and the repair shop contacts the insurance and repairs are an amount that would total the vehicle they won't pay to have it fixed. Since they didn't total it if I take it in for repairs and they start can they total the auto half way through or deny the supplements? I have a lein on the auto. If it should be totaled now why do I have to wait for a body shop to get another insurance adjuster out? If it takes 6 mos to get that and it totaled what about the value between now and 6 mos I've used it? They are asking me to travel outside the disaster area to find a body shop, then send an adjuster to that body shop to see if it should be totaled. That's going to be hours of travel, and time off work to cordinate. Can they require that? What are my rights to a claim processed properly and quickly?
I have two auto claims and home claim to deal with after hail & tornados hit the south in April. Everything is backed up for autos and houses. They lowballed my estimate and are asking me to go to ridiculous legnths to straighten out their mistakes. I took it to their adjusters twice at their request initally. I just want to know things will get fixed despite their screw ups.
ANSWER: Hello Spacey,
First of all, my sympathies for your losses. I have been in disaster areas, and I feel for you.
You have several different issues here. Let's take one at a time.
First,you are in what insurance companies call a "cat" area. Simply put, this means massive claims, all at the same time. For this reason, insurance companies will deviate from their normal processes. The idea is to get the process started for as many claims as possible. This is not at all unusual. In fact, it is standard practice.
You should not reject a claim check unless it stipulates that it is full and final payment. I doubt this is the case here. Understand that insurance companies are not going to overpay claims. This is why their initial estimates are going to be low. But as long as they are going to work with the body shops, this should not be a problem for you.
Supplements are also a common process. usually they apply to damage that is uncovered during a repair "tear down". In general practice, a supplement requires the adjuster/appraiser to return to the body shop to view the additional damages and approve payment. In this case, apparently they are using supplements as a means to get repairs started and then pay the full amount later. My guess is that supplements will be done routinely with their preferred body shops. Correspondence between the shop and the insurance company will probably be by email, with the process being streamlined. I doubt the appraisers will actually respond to approve supplements in view of the magnitude of claims.
As a general rule, your first priority after a cat loss is to find a reputable body shop or contractor. This is what you should be doing now. Find a reputable body shop either in your area or out, and let the shop determine if your car could be a total loss. You don't mention what state you live in or the value of your car. However, as a general rule assume that a total loss will be established when the damages hit around 80% of the market value of your car. For hail damage, that would be an awful lot of damage! If the damage is extreme, I assume they will replace rather than repair at least certain parts. A total loss seems unrealistic, but I may be wrong since I do not have all the details. Let the shop lead the way before you elongate your claim even further. If you demand that an adjuster respond to make that assessment, it could take weeks.
Finally, if you have to travel out of your area, that is your choice. The suggestion is made to expedite your repairs. If you cannot take that time, find a shop in your area. The flip side, however, is that the repairs will take longer. That is your decision, not the insurance company's.
As for your homeowners claims, at the risk of sounding self serving, if your claims problems are serious, you might want to consider my $19.95 ebook. You can read about it, and get some valuable free advice at my website, http://SolutionsForYourInsuranceClaim.com
Right now, focus on getting a shop and go from there. And - accept the claim check.
Hope this helps. Good luck!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
---------- FOLLOW-UP ----------
QUESTION: The body shops so far are booked through December. We're still seeking one hoping to find one sooner. It looks like we will go out of the area. The damage is substantial. There were three golf ball size hail storms that hit us. We are in Tennessee. The storm busted through our skylights and roof and happened in our living room. We slept in the garage. It was unreal. As for the roof, shingles are on back order.
I am not sure I asked my question right. This is very confusing to me even though your responses are clear I still feel lost. The truck is 2007 Dodge Ram used for personal use and work. My husband is a contractor. It has a loan on it with about 15k left. I don't know it's value. It's going to be months before it will be worked on or an official estimate from a mechanic will happen because of the mass damage and everyone is booked. But we've taken it to two and they said verbally due to the year, availability of parts, the roof has to be replaced and it would be at least 16k and they considered it totaled. The insurance check is for 8k. That's twice as much and enough of a different to take it from fixable to considered totaled. I am scared when we get to our appointment months from now the work will start and when it runs out and they ask for a supplement the insurance will say no because it's then reaching an amount considered totaled. Because they won't provide me with any process information other then "call us" at that time this seems like a real possibility. Otherwise why can't they say this is the process and how we handle these situations?
Or we may wait months for the appointment, get in then the mechanic call them and say it will need this before starting the work and the insurance will say no it's totaled. What if the value has changed between now and then? That's months we could have shopped for a replacement truck and got on with our life. We already know it will take 6 weeks to fix per the shops we talked to.
Also I have to tell them who to make the check out to and with months to wait it's going to run over the 180 day limit. And what if we get in another place sooner? It seems to me it's in everyones best interest to get the adjustment right now as opposed to later and costing everyone more time and money then necessary.
I guess the biggest fear is not knowing up front the processes or how to get the insurance company to share that with me. Then because there is something I wasn't told (which keeps happening) we won't do something correctly and when it's finally time for the service appointment they'll say oh you didn't do this and your screwed. Either way we have to fix the truck because we have a loan on it. I don't even know what happens on the bank side if it doesn't get fixed right or it gets totaled.
Are there people who can handle this stuff for people like me? They can get the paperwork and processes done right? All I can think of is a lawyer but I am not trying to sue anyone. I just can't wrap my head around the lack of information and differences in information we do get.
Answer Hello Spacey,
OK, with the additional information you have provided, let me give you some specific advice.
First and foremost, if you have had to body shops tell you that they believe the truck is a total loss, it probably is. Specifically what that means is that the cost to repair exceeds 75%80% of the value of the vehicle.
As for the value, it will be determined by your insurance company. To protect yourself in settlement negotiations, you need to do your own homework.
1. You must determine a fair, actual value for your car. Begin by locating some online sources. NADA, Kelly Blue Book, etc
2. Insurance companies will usually set your value somewhere between the dealer price and the trade-in value. But the key is that they also take other factors into consideration. Translated, that means if your car is not in "excellent" condition, subtract value. If your mileage exceeds 15,000 per year, deduct more.
Once you get this done, you will be in a better position to negotiate. Understand one thing, however, the insurance company will only pay the fair market value. They may well try to lowball you, but in the end the value will be the negotiated value, NOT necessarily what you owe on the car. (That's where GAP insurance comes in if you have it.)
Also, make sure that you ask about sales tax. You should be entitled to that when you replace the vehicle.
Here's what you should do. Call your insurance company - with your claim number - and speak to an adjuster. Even though this is a CAT loss, there will be an adjuster assigned. Tell that adjuster that you have taken the car to 2 shops and both have told you that the car is a total. Insist that you need an insurance company appraiser - or an appraiser at a body shop that is authorized by your insurance company to write appraisals - to appraise the vehicle to determine if it is in fact a total loss.
Of note - this is an easy appraisal if the vehicle is a total loss. The computer will calculate it almost instantly with very little input from the appraiser.
You absolutely do not want to wait for months for possible repairs when the vehicle is likely a total loss. What you need is to settle NOW. This avoids the whole body shop delay problem.
Make your truck available where and when they need it. It is possible that they have preferred shops that will write the appraisals. It is also possible that their own appraisers are at certain body shops at certain times. Find out what the procedures are, and follow them.
Even though this is a CAT loss, insurance companies are not absolved from fair claim practice. They must still settle claims reasonably and swiftly. Do NOT accept the excuse that they are too busy to help you. If you are confronted with that excuse, speak to a claims manager. If they continue to delay your claim, address your demands in writing, return receipt.
For more specific advice on fair claims handling, claim delays, and being proactive in your claim, you need to read the articles on my website, http://SolutionsForYourInsuranceClaim.com
One more issue, and that is whether or not you want to keep the truck. State laws govern under what conditions you can or cannot keep a totaled vehicle. Most states require that you surrender a totaled vehicle. Once you settle, you sign the title over to the insurance company who sells it for salvage. I do not know your laws in Tennessee. I did a quick internet search and found the following link to your motor vehicle laws: http://michie.lexisnexis.com/tennessee/lpext.dll?f=templates&fn=main-h.htm&cp=tn
In view of the extreme complications in getting the vehicle repaired, if it is a total loss, you are probably best advised to do as follows:
1. Have the vehicle appraised by an insurance company representative to verify the fact it is a total loss.
2. Meanwhile, determine on your own the fair market of the truck as specified above so that you can negotiate with wisdom.
3. Complete the total loss paperwork in preparation for your settlement check. Note, the settlement will go to the lienholder. If there is any left over, you keep the balance.
4. When you purchase a new vehicle, follow up to obtain your sales tax.
Hope this helps. Good luck!
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
