QuestionQUESTION: Hello our 2007 CTS Cadillac was in a auto accident about 3 weeks ago. To us the car looks totaled with the entire front end smashed in up towards the window as well as the sunroof slightly off. We were told by the estimator at the dealership that they would repair it for approve. $15,000 verses just totaling it out. We would prefer they total it out and allow us to get a new car. Statefarm is the insurance company paying for the damages and we feel that the dealership is just trying to make some money off the deal and have us stuck with a car that won't EVER ride the same. What do you recommend we do? Should we dispute the offer of repairing the car and tell Statefarm we want to total the car out or what? Please advise, thanks.
ANSWER: State Farm is one of the best insurance companies out there. State Farm will also stand behind the shop and guarantee the work for as long as you own the car. I know it's hard to look at your nice new car all smashed up and can not believe that anybody could possibly make right, but you don't have much choice. If you are sure you do not want the car, check with some of the other body shops around town to see if they might be interested in buying your car as is and take a cash settlement from State Farm. You will likely lose a few bucks in the process, but you will be out from under the car. A lot of body shops would jump on a deal to buy a wrecked Cadillac with a clean title. Also, talk to your ins. appraiser, he might help you out.
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QUESTION: I have another question for you. It's a new car only a year old in September 07 and we of course still owe a balance of approx. $32,000 on it. If we take the option of selling the car to a body shop and get a check from State Farm (which of course won't be the balance of the loan) can we go to our own insurance and ask them to total the car out and pay the remaining balance. Question #2 If they do decide to total the vehicle and the appraised value is less than what we owe on the loan will our insurance (allstate) pay the remaining balance off less our deductible? We don't have GAP insurance.
Answer Take the Private party value of your car, deduct the cost of the damage and try and get that much out of it. The loan you have has nothing to do with what the insurance company will pay. They do not care what you owe, all they care about is what the car is actually worth. State Farm, from my past experience, is one of the highest paying companies there are.
Sounds to me like you owe so much on the car, you might be better off having the car fixed. I State Farm is backing the shop, you have almost nothing to worry about. Let them fix it. When it's all done, drive it, inspect it thoroughly, you should impressed at what some of these guys can do. Otherwise, refuse the car until it is repaired to your satisfaction or State Farm should compensate you.
I telling this from my experiences dealing with most top rated insurance companies in Michigan, should be similar practices across the country.
By the way, $15,000.00 repair on a new Cadillac is not that much damage. I managed a Cadillac dealer body shop for three years, the front end parts alone could reach that. If the sun roof is out of align then the body is tweaked a little, an easy fix for a good frame man.
