QuestionHello Richard,
Like many others in Phoenix, we had some heavy hail early this month, but I feel there is something not right about how our claims are being handled.
We have two cars, both of which were damaged. The damage is extensive, but superficial; from 20 feet you can barely see any damage at all. The insurance company dispatched a claims adjuster to inspect the cars, and he told me on the spot that both cars would be declared total losses. Two days later, I received a call from the insurance company, telling me how much they would pay, requesting the phone numbers of the lien holders, and pressuring me to release the cars to them.
The cars are used, but we've only had them each about a year and still owe more than they're worth. I told the representative that I did not want to give up the cars because I would end up in the hole financially as well as having no car.
He said my only other options were to pay off the loans completely and get salvage titles, after which they would cut checks for the pre-damage value less salvage value, or I could simply withdraw the claims. They haven't yet shown me the details of their estimates. I can't help but feel this is some gambit to push me into withdrawing the claim because they're betting I can't afford to pay off both car loans (and I can't#.
Now, my question is, don't I have any right to have a repair estimate done by a qualified repair shop? If a qualified repair shop can repair it for less, don't I have any right to demand they repair it instead of totaling it?
Also, if I withdraw the claim, what happens if our cars are damaged #or stolen) later? Will the damage that's already been done be factored into future claims even though we've withdrawn the claims?
Thank you!
AnswerHI Ken,
This sounds a lot like the strong arm tactics of the 1930s Chicago gangsters. Sometimes I think many insurance company's training classes consist of having the the adjusters watch Al Capone movies.
Of course you have the right to get an estimate of the damage. You should try to find a good reputable Paintless Dent Repair (PDR) company. Go to them to get an estimate. If there are any panels that are not repairable by PDR methods, then go to a body shop to het another estimate to repair only those panels using traditional bodyshop methods.
Before you go get the estimates, visit www.NADA.com and determine the retail value of each of your cars. If when you get a repair estimate the total cost of repairs is more than 70% of the retail value of the vehicle then it is a total loss. At that point you may decide to drop your claim and drive the golf ball. If you have another incident, the value of your car will be reduced by the cost of the unrepaired damage.
Don't let the insurance company bully you. These are your vehicles, your transportation. Just tell them to relax ad you will determaine how and when things will happen. As long as you keep the cars in your possession, you have control. Do not release your cars to the insurance company until you have reached an agreement in writing regarding the outcome of your claim and the amounts that are to be paid. Also remember that if the vehicles do have to be totaled you can negotiate the value of the cars with the insurance company. In many cases insurance companies will value vehicles 20% to 30% below their actual. If they try to low ball you, you can invoke the "Appraisal Clause" of your policy. To learn more about the appraisal clause process visit: http://collisionclaims.com/Appraisal_Clause_Process.asp
I hope this helps
Richard Hixenbaugh
