QuestionAfter driving for nearly 30 years without incident, I recently had two accidents
where my cars were totaled. The first was in February when I hit black ice
driving over a small bridge which, unfortunately had a sharp turn at the end
of it. Crashed, blew air bags and totaled. It was an eleven year old car and I
did not ague when they gave me less than book value. I bought a 2004
loaded Honda accord. Best car I ever owned. Loved it! I was driving to work
in a major rain storm on Monday and something ran in front of me, I hit the
brakes hard and spun into the guardrail. No airbag explosion this time but
the rear end has some damage and the front end gone. It has taken this past
5 days for them to make a decision after many phone calls to both the
insurance broker and the auto body shop that has a direct connection with
State Farm. They finally told me it was totaled yesterday but that they are
deciding it's worth. I just took out the loan and the title is owned by the
bank. I am worried that they will try to low ball me as they did with my last
car. Is there anything I can do to avoid being taken advantage of? Thanks so
much for you help as I had been out of work for * months and need a car for
work.
AnswerHi Sharon,
The best weapon in this situation is knowledge. You should go to www.autotrader.com where you can do a search for currently for sale vehicles like yours. Keep your search within 100 miles of your zip code. Locate 5 to 10 vehicle that closely match your car in year, make, model, options, mileage and condition. The average the prices to determaine a reasonable average value. Then when the insurance company makes you an offer, you will know if it is within a reasonable range. If their offer seems low you can invoke the "appraisal clause" of your policy.
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 having 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.
To find a qualified appraiser visit www.collisionclaims.com
I hope this helps
Richard Hixenbaugh
