QuestionQUESTION: First thank you for your time in advance for any advice you can offer. This is so frustrating. My daughter who lives on her own (just busy working a split shift, I'm trying to help her.# She was in an accident last car in a four car wreck, she was not sited and ins State Farm her insurance agrees that its a no fault wreck #I don't but.....# They State Farm has totaled her car and has offered a low settlement. They have not provided the original appraisal that determined the car to be totaled, nor , have they disclosed if they use 70, 80 or 90% when making the decision. She has full coverage they just offered her a figure of apx 2,000 less than what we believe to be the fair market value, we did get the report they used in determining the value and the cars are far away over 100 miles or are not able to be verified, no vin # no number to call no stock number etc... they are using apx 30 vehicles but none locally within #50 miles# I pointed all this out and provided 5 verifiable cars all within 25 miles from my home. All they want to do is ADD these to their report! which only brings the value up $50! And they say we can go to mediation, We don't have the money, its been 2 3/4 months already and we are still making the ins payments and car payments and having to borrow a gas hog in the mean time. We are beginning to drown here #thats what they want so we just take there low figure!# All she wants is the true market value #and shes still out for that will just pay it off with apx 1000 left in hand and with that she has nothing to trade in now!)see she only had the car for a few months and she put down cash and traded her car which made it to where she was borrowing a low amount on the car shes NOT upside down but they are really low balling her. what can we do to get them to pay the FAIR Market VALUE without using cars so far away or as far as I can see made up cars with out going to mediation and soon ins and car payment due again in 8 days! And when we settle this can we then get them on bad faith? seems they are not abiding by the law on valuing Fair Market? or how does that work? (bad faith) And is the car really totaled? We have NO money to get our own appraisal etc.... she is a single wking mom of a toddler and I too am a single mom of a toddler on SSD. How horrible that her own ins treat her this way shes been fair and honest and they are being slimy can you give us so advice hate for state farm to get away with this nonsense that I would say is a form of rape or robbery!
ANSWER: Hi Bonnie,
Unfortunately, the only process that can help you is the "Appraisal Clause" of your policy. However this would require that you hire an appraiser at a cost of about $300.00 to $400.00. Then you may also have to pay half of the cost of an umpire appraiser if it goes that far. Below is the process of the appraisal clause in your policy:
The Appraisal Clause Process
1st party claims with your own insurance company
An appraisal clause is a clause or paragraph found in most but not all insurance policies. It is designed to be a way of reaching a settlement when there is a dispute over the amount of a loss between you and your insurance company and can be invoked by either party. The appraisal clause can be utilized when there is a dispute over the cost to repair your vehicle, the value of your vehicle in a total loss claim or the diminished value of your vehicle if you reside in a state where you can make a 1st party claim for diminished value. The appraisal clause is generally found in the "Damage to Your Auto" section of your policy. Following are the basic steps involved in the execution of the appraisal clause of most policies.
Step 1: Invoking Your Appraisal Clause
You will write a letter to your insurance company telling them that as a result of your inability to reach a mutually agreeable settlement, you are invoking the appraisal clause of your policy. The letter should be sent by certified mail/return receipt requested.
Step 2: Selection of Appraisers
In the appraisal clause process, each side will select a competent appraiser to assess the loss. Each side will be responsible for paying their chosen appraiser. You should select an appraiser who is knowledgeable in the specific area that is the subject of the dispute and who is familiar with the appraisal clause process. Your selected appraiser should be able to be objective and impartial. Your appraiser should not do any work for the insurance company with whom you are aving the dispute.
Step 3: Completion of The Process
Your selected appraiser as well as the appraiser selected by your insurance company will each independently appraise the loss. The two appraiser will then communicate and discuss their findings. During this process the two appraisers will attempt to reach a mutually agreeable figure. If the two appraisers are unable to reach an agreement then the two appraisers will mutually select and agree upon a third party Umpire appraiser who will review the positions and documentation of the two primary appraisers and may also do an inspection and assessment of his own. If an umpire appraiser becomes necessary, you and your insurance company will each pay half of the cost of the umpire. Then an amount agreed upon by any two of the three appraisers will be final and binding on all parties.
You would likely not win a bad faith suit. Beside the fact that you would have to find an attorney willing to go up against State Farm, the process would take months to go through the court system, all the while your daughter is still making the car payment and not having a car.
If you are ready to hire an appraiser, you should visit www.collisionclaims.com
I hope this helps
Richard Hixenbaugh
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QUESTION: Is this appraisers clause the same as taking case to mediation for thats what it sounds like but not 100% sure. And why would I not have a good stand for bad faith? My own ins (who totaled my car) and I do have full coverage Ins and was not sited for accident. Are they allowed to use a valuation report that is 98% not verifiable, not same model cars, or vehicles sold prior to loss and further than 200 miles from my area? then they give a offer of WOW if I were to go and find what I had for that amount it's be a Miracle and it'd be if it sounds to good to be true it probably is! I have given them over 30 cars my self all within 75 miles of my zip and all 100 verifiable and they still wont budge. They are allow to keep dragging this out for I cant afford to pay for mediation or an appraiser this is wrong! its not going on 3 months! Thought my ins that I choose and Hire to Protect me is suppose to by law put me back where i was before loss, in a timely fair fashion. And lastly why did you say if I find an attorney that would be willing to go against state farm?!! (its cuz they pay and brown nose all their crap right?!) I need to close and ask my higher up to give me more objective views and to pray for state farm for I believe they are greedy and slimy bottom of the pond; pond scum! Sorry I needed to vent that frustration, it sure helps when your getting screwed by the one you paid to protect you. Thank you for all your knowledge you have given. One more thing, If I do go with bad faith do I just stop everything with them and and file for a court date? Asking a civil judge to hear me? For in my 3 months of reading this is wrong what they are doing. If I were anyone other than an avg working person, I don't believe they'd be doing this. Cant I present this myself without an attorney!? I know state farm are big guns but its the lil one that pack the punch!! its so obvious that they are not looking at my best interest!
AnswerHi Bonnie,
You ned to understand that regard less of all of the advertising from insurance companies that says they will take care of you, in reality they do not care about you at all. They will only do what is in their financial best interest. They are a business that only makes money by denying and minimizing claims.
In order to sue for bad faith you need to have a lawyer. A lawyer will review the case and will determine if the facts are such that they have a very good chance of winning. Even if you win the case, that does not mean that State Farm would have to pay your legal fees. That decision is up to the judge. The attorney would likely not take this kind of case for less than a $5,000.00 retainer. In addition, it could take 12 to 18 months before you get the case into court.
The appraisal clause is not mediatation but it does work in a similar manner. However, in either case there is a cost involved. If you went to mediation you would be responsible for paying half the cost of the mediation process that could be up to $2,000.00. The appraisal clause that is built into your policy is there to help settle disputed between you and your insurance company. It is a contractual clause within your policy and is the method to be used if you want to have a chance at a higher settlement.
I hope this helps
Richard Hixenbaugh
