QuestionI HAVE A 2007 GMC YUKON FULLY LOADED WITH 5K MILES AND IT HAS A REBUILT TITLE I WRECKED IT WHICH IT IS A TOTAL LOSS AND THE INS IS ONLY WANTING TO PAY 50% OF THE VALUE I COULDNT EVEN GO BUY A REBUILD FOR LESS THAN $27,000.00.
NOTHING WAS MENTIONED WHEN I TOOK FULL COVERAGE OUT ON IT OR IS IT MENTIONED IN MY POLICY.
IS THIS LEGAL AND WHAT OPTIONS DO I HAVE?
THANK YOU
AnswerHi Terra,
I am a bit confused by how you stated the facts, so please try again to let me know some answers to my questions if I do not fully understand your situation.
First off, it seems that you purchased your vehicle with a title that showed on it the fact that the vehicle had been totaled by an insurance company. Is that correct? I get this because you say that your vehicle "has" a rebuilt title. This implies that the title is presently in place.
Next you state that you wrecked it and it is a total loss. I take it that this is the present accident.
You complain that the insurance is not willing to pay what you feel is the value, and only 50% of the value in fact. If so, that leaves you three alternatives.
First, you can repair it with USED and/or NON-OEM PARTS.
Second, you could try to buy it back for salvage and repair it and make it a second re-titled vehicle if your state DMV will allow that.
Third, if you do not wish to keep the vehicle, then you must fight the offer with your own facts.
Here is more on each of these choices.
A.) SAVE YOUR VEHICLE FROM BEING TOTALED BY REPAIRING WITH USED and/or NON-Original Equipment Manufactures' (OEM) PARTS and STIPULATING TO IGNORE SOME COSMETIC DAMAGE.
Before we get started, have you thought about keeping your vehicle? Many times people have put a lot of money into maintenance OR EXPENSIVE REPAIRS (i.e. new transmission) in a high mileage vehicle, and they KNOW what they have will work as reliable transportation for them.
So, rather than taking the low offer of cash and trying to find a vehicle that will be reliable, they put the money into fixing the wreck with used parts, leaving aside cosmetic damage (who cares if you drive a vehicle with some bumps and bruises—especially when that will reduce the repair bill a ton??).
So the first thing, if you are happy with the performance of your vehicle would be to explore ways to keep the car.
Ask what the body shop would charge to repair your vehicle with USED and/or NON-OEM parts. You can negotiate to leave some cosmetic damage showing to save money. I would not be surprised to see up to 60% come off their repair bill in that case. If you have a vehicle that was running fine, why not keep it, even if you have to drive around with some dents showing?
Find out the maximum amount that the insurance company will pay for repairs before they elect to total your vehicle. Then arrange for your repairs to be done within that limit. This is my first choice and better if you can make it happen. If the adjuster still wants to total your vehicle, then you have to go to the next step.
B.) BUY BACK SALVAGED VEHICLE FROM INSURANCE COMPANY, REPAIR IT, RE-TITLE AND RE-LICENSE IT, AND KEEP IT. YOU GET YOUR EQUITY, LESS THE SALVAGE VALUE THAT YOU PAY TO BUY IT BACK AND THE COST OF REPAIRS PLUS INSPECTION AND RE-LICENSING COSTS. This is conditioned upon the Department of Motor Vehicles allowing a vehicle to be totaled and re-titled twice. So make sure of that before you agree to buy back the salvage.
Here is one way to get the insurance adjuster at her own game. If she values the vehicle at such a low amount, then the salvage value will also be very low. Usually it will be around 15% of the salvage value. She will pay you the actual cash value of the vehicle and you will use that money to buy back the salvage and to repair the vehicle.
NOW, if you were to pay that amount and then to set up the repairs to be done with USED and/or NON-OEM PARTS, and perhaps forgoing some of the strictly beauty finishing items, you could GET THE REPAIRS DONE FOR A LOT LESS THAN THE ESTIMATE GIVEN TO THE INSURANCE COMPANY.
Plus, once the vehicle is repaired, you will have to take it to the state patrol to be inspected as a salvaged vehicle. You will need paperwork from both the insurance company and the auto body shop that confirms both the amount you paid for the salvage, the fact that you are authorized to title the vehicle, and a receipt for the work and parts from the auto body she op
In summary, people often make out pretty well by buying their car as salvage and by following the route listed above to repair and re-title the vehicle.
C.) THIRD, FIGHT THE ACTUAL CASH VALUATION WITH YOUR OWN RESEARCH AND COMMUNICATE IN WRITING.
Now, changing topics back to how to get that value up for the insurance adjuster, let's get started for you. The first tasks are to get at the actual cash value and next throw out that outrageous offer that they made you.
My favorite sites for valuation are www.Edmunds.com and www.autotrader.com. They want to know your zip code, and then they ask for a range in miles to search. Don't limit yourself to your city: it is reasonable that someone could go up to 300 miles to pick up a used car. That way you will get a lot more information. Be aware that you should pick the option "any distance" from your zip code. You can use information from local newspapers, advertising flyers, car dealerships, and the Internet.
Be aware that the prices shown are the "asking" price, not the actual cash value. But also be aware that the insurance adjusters have used a computer scan of sales that were at the trade-in value, NOT the actual cash value.
If you have made major item replacements, above and beyond normal maintenance, you need to document them and ask for a review of those extras. For example, a rebuilt transmission or the like will add value to a used car. How about new tires or a new stereo system? The issue is: how much (if any) did they increase the FMV or actual cash value of the car. See this link and scroll to the bottom for more information on that topic. Car Accidents: Totaled, Repair, Valuation, Your Rights http://www.settlementcentral.com/page0007.htm
Now for getting your evidence in order to prevail versus the adjuster, you will need someone to make a statement as to the impact of re-titled status on a vehicle like yours. In other words, maybe two dealers will be willing to state that the impact of re-titling is only a 25% reduction in the usual fair market value. THAT kind of information is crucial to making the proof that such re-titled status does will not reduce the owner's value nearly so much as the adjuster states it will.
FINAL TOPIC: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
