QuestionAre the insurance company's hands really tied as to negotiating the value of a car in a total loss situation?
My husband was the victim of a driver who ran a red light and struck our vehicle in an intersection on 8/26/2010. Liability was determined to be entirely on the insured. The car was an 1994 Volvo 940 station wagon with 176,000 miles on it, in near-excellent condition. The insurance company is offering me $2,700. I believe the car is worth at least $3,335.00.
We have been going back and forth on this issue since September. I refuse to sign the paperwork accepting their lower offer. They are threatening to release their interest in the car within 10 days from today if I don't agree to their offer by 12/24/2010.
Early on when I rejected their first offer of approx. $2,650, they requested that I provide receipts for replacement items we had paid for in the last 12 months before the accident and those items would be included in the offer. When I submitted $705.00 in receipts (new tires, new muffler [less than 300 miles on it], brakes, full gas fillup [with 12 miles on it], etc.), they added only $36 in value to their offer.
Last week I offered to settle the case for $3,000 which they rejected. Then I rejected their revised offer of $2,700.00 and was told that I needed to provide more documentation to support my demand in order for them to consider offering more. And that I would have to also find a dealer offering a vehicle for sale in the price range that I was asking.
Two days ago I provided documentation via copy of the Kelly Blue Book value which we obtained at the time of the accident ($3,335.00), and I found a Volvo dealer in my state offering a similar vehicle with a less (about 30,000 less) mileage but a year older [1993] for $4,495.00.
The updated CCC Market Valuation Report that I received today did not include the vehicle that I submitted. It did once again include similar vehicles with less mileage (110,000 to 121,000 miles) offered for sale at $3,499.00 - $4,000.00. In all instances, they adjusted the value of my vehicle downward by comparison by an average of $1,500.
In the comparable vehicles they used that had more mileage than mine [ranging from 188,000 to 220,000] and listed for sale at between $1,500.00 and $2,991.00 they only added a four hundred dollars to the adjusted value of my vehicle. In the case of a one year newer car with 216,000 miles on it valued at $2,991.00, they adjusted the value of my car down by $550.00.
The insurance company has spent far more than the additional $300.00 I am asking to avoid settling this matter. I told them today that I am satisfied to let a judge decide the value of my car and will file a lawsuit. In PA I can file with a lower court as the value of what I am asking is less than $8,000. My husband is an attorney and will represent me for nothing, plus I will have to pay about $100 in filing fees. These people have jerked me back and forth with lies and promises so long that I am planning to file a lawsuit even if I don't get any more money for my vehicle.
What I really want to know is why they exert so much effort to avoid paying a fair price even though it has to be costing them hundreds more to do so than the amount I am requesting? And what do you think of my plan to pursue a locally filed lawsuit? Is the insurance company really that helpless that they can't authorize an additional $300 even if it costs them hundreds or even thousands (if they show up for the hearing) more to defend their position?
AnswerHi Peggy,
The insurance company is no helpless at all. Just the opposite. They are thugs who's job it is to steal as much money from people as they can. CCC is a company that helps insurance companies to steal money. They have been the subject of several class action law suits for low balling the value of cars solely to benefit the insurance companies that pay them to do so.
Now for the real situation. There is no specific value of any vehicle. There is always a range of value. Kelley Blue Book's figures are always on the high side. The insurance company is always on the low side. In your case since the range is fairly small, the insurance company can stand strong on their figure because they know that most people are not going to go to court over a few hundred dollars. Also, it's not just the few hundred dollars on your claim, it's the few hundred dollars they try to save on thousands of claims each month.
With them offering $2700.00 and you seeking $3300.00, this difference is within a reasonable range of value. The Kelley Blue book would not be admitted as evidence in a court case. You would have to hire an appraiser to appraise your car and them you would have to have that appraiser appear in court as an expert witness. The fees for the appraisers services would be more than the difference you seek and you would likely not get reimbursed for those expenses even if you win your case. In most cases the judge would split the difference. So you would only gain $300.00 and have costs that may be over $1,000.00. Your husband should be able to verify what I am saying here.
Under the circumstances, I thing you are better off to juist accept the $2700.00 and move on.
I hope this helps
Richard Hixenbaugh
