QuestionQUESTION: Sorry, this is a lot of lead in.. about time and expense...but I'm getting very confused. I don't think I'm being treated fairly and I'm not sure what recourse I have. In the midst of all this, I have to choose what days I can take the pain meds I was prescribed at the ER based on what level of clarity I need in dealing with the party-at-fault's insurance company, Farm Bureau.
Friday May 2 at about 5pm the collision occurred..50mph 2008 CR-V smashes into my trailer...trailer breaks free of the hitch and smashes into my 1991 Nissan Pathfinder.. tongue ripping through the fuel tank...cargo portion of the trailer caving in my rear lift gate and bumper....and a tiled-top dining table riding inside my Pathfinder smashes into me... I was maybe going 7mph at that point signaling a left turn off of a loooong straight county road...Perfect day...Perfect visibility. And the lights on my trailer were proven to be working by hooking the harness up to another vehicle after the collision. Afterwards my Pathfinder was towed to the wrecker company's yard. The same business is also a collision shop. I spent Sunday afternoon at the ER, because the pain was too much for Advil and heating pads. I got the police report about mid-afternoon on Monday May 5th...The first day it was available. And then called Farm Bureau (their online claims number) on Tuesday the 6th to start the claim process. The F.B. Rep on the phone said that I would be contacted by the local F.B. Rep 'soon'. I also found out that the claim on the vehicle operated by the party deemed at fault for the collision had already been started. They already had all of my information from the police report...including where my Pathfinder had been taken. Come the next Friday (May 9th), it took me calling MY insurance company(USAA)..and then them contacting Farm Bureau on my behalf to find out why it was taking so long for him to contact me....and to get the local F.B. rep's phone number... and to find out why I hadn't been offered rental transportation as yet. Once USAA got into the picture things started to move some. I had sent them(USAA) the police report...and then they sent that to Farm Bureau, but they (F.B.) must have already had it because they DID have my information to start the claim for the CR-V that rear-ended me. But instead of the local agent calling me 'soon' as I had been told he would...I had to call him to get anything in motion as far as my Pathfinder was concerned. He didn't actually look at my vehicle until that Friday the 9th...a whole week since the collision. SO... that's $175 in storage fees to that date... I would have already had it moved to a fee free location except I was waiting for Farm Bureau to make an appraisal. $25 per day storage plus the wrecker fees for getting my truck off the county road...and my trailer (loaded with a friend's new freezer from SEARS (still in the box) and furniture she inherited from her grandmother) to her house where we were headed before the collision. TWO separate wrecker trips...Pathfinder going to one location...trailer going to another.. $271.00 in wrecker fees. Incidentally the local Farm Bureau agent has yet to talk to her about her property damage...or to me about damage to my trailer. She has gotten an email from him, but just yesterday, Monday May 12th. My damaged trailer is still at her house because it's inoperable...destroyed tongue and the tail lights need to be replaced...and I have no way to pull it anyway because work hasn't even begun to repair my Pathfinder. The Farm bureau rep has been trying to deem my Pathfinder a Total Loss from the first time I talked to him... stating that the repairs will be $1735.25 (75% of $2,315)...and from the beginning I thought that repair price was inflated. I'm not new to working up cost estimates.. having worked in home remodeling and general construction where that sort of task was common... and I'm very familiar with what Nissan Pathfinder parts cost as well...having driven that vehicle for the last 17 years. Anyway, I did my best to estimate parts cost (based on salvaged parts) and then doubled that amount for labor. My best guess was around $1200 for repair which is 54-55% of HIS market value.. which I thought was low to begin with. Looking at AutoTrader, Ebay and other sources it looks as though I would have to pay at least $3200, but more likely $3500-3800 to replace my Pathfinder...and then more than likely have to travel a good distance to collect the replacement Pathfinder. Yesterday morning the collision shop guy also estimated what he thought...arriving at $1260.00. The Farm Bureau rep dickered around all day on that and still wouldn't agree on paper..a signed agreement, I mean... to pay for repair verses paying out a market value of $2,315. So all this time that I was thinking that 75% was some rule, with maybe a little leeway up or down a few percentage points... but he still wanted to haggle? I've been without my Pathfinder and my trailer all this time and that means nothing to him...or that when I really NEEDED a rental he hadn't even bothered to get in touch with me as yet? He did eventually allow a seven day rental but I don't need it now...and I'm holding that card back to play later. I asked him point blank, what IS the percentage # that you consider in THIS particular case that makes the repair feasible FOR You??.... he never answered. Just kept calling it a 'border-line total loss'. To me that's just ridiculous...the gap between 75%...and...54-55%...That's a wide border?? Because, I've chosen to have the repairs done by the same place that stored the Pathfinder (not my first choice, but...), they are willing to forgive the now 10 day storage fee.. $250. The Farm bureau Rep is still including the $271 wrecker fee in consideration of the REPAIR COST percentage. How is that fair at all??...and is that even allowable? I would think that should be a completely separate expense and NOT a factor in determining if my Pathfinder is a Total Loss. In his math, the estimate of $1260 repair PLUS the $271 wrecker fee... And I've even made compromises like I'll pay for the damage to the receiver hitch out of my own pocket...replacing it for probably around $150... I'll be buying a replacement skid plate to go under the fuel tank later, because the salvage yard didn't have one at the moment ($40-50)...The replacement lift gate will NOT be repainted..I'm not even really sure what color the one from the salvage yard is....and I'll forgive the $60 worth of gas (17 gallons) I'd JUST bought (6.7 miles before being hit from behind) and then watched spill out all over the road... and he still hasn't agreed on paper that my Pathfinder isn't a total loss? I don't think he should count the wrecker fee in the determination about my Pathfinder...especially since I've compromised and been responsible in bringing the cost down to the point is already. The collision shop has started removing the damaged parts...and has suitable replacements coming from a salvage yard today. Is the Farm Bureau rep going to wait until my truck is repaired and then STILL call it a Total Loss? I was the one who got slammed into by his policy holder and I'm coming out with much less than I had before . What should my next move be?.. I feel like I'm getting slammed into all over again.
ANSWER: Hi Patrick,
WOW! That was a mouthful.
This is a typical way that insurance companies handle claims. Their goal is to delay, confuse and bewilder you to a point that you will do almost anything just to get it over with.
If you have collision coverage on your own policy, you can have USAA handle it. They will either repair ot total the vehicle and get this over for you. They will then get reimbursed by Farm Bureau. If you do not have collision coverage, you need to elevate this claim to a management level. You need to complain about the poor service and ongoing delays. You should demand that a decision be made by the end of business today. Do all of this in writing if possible and demand they respond in writing even if it is by fax or email. You just have to stay on top of them. Do not wait for them to call you. If they say they will call you by 2:00pm then you call them at 1:30pm for an answer. You need to become the biggist pain in the A_ _ that they have ever had to deal with. Make demands, raise your voice, question whether they have the authority to handle your claim and if you should be dealing with their superiors. The squeeky wheel gets the grease.
I hope this helps
Richard Hixenbaugh
---------- FOLLOW-UP ----------
QUESTION: Yes, I agree that was 'wordy' and as such I let my basic question get lost in the mix.
Which was:
Is it allowable for the party-at-fault's insurance company to include either (or both) the cost of Wrecker Service or Fees Incurred for Storage of the disabled vehicle owned by the party-NOT-at-fault...in determining the Total Repair Cost of the vehicle as it relates to determining if the vehicle will be deemed a Total Loss?
and if so...in consideration of the storage cost... What if the insurance company let an entire week pass from the date of the collision before going to appraise the vehicle or contact the owner?...Thereby driving the repair cost UP several percentage points. In my case the collision shop forgave the storage fee that Farm Bureau would have had to pay, but ONLY because I decided to have the repairs done at their shop. $250 in storage fees...erased.
In addition to that...Is is not a major conflict of interest that the Claims Adjuster is also the SAME person who appraises the Fair Market Value of the vehicle? That would seem to me to be extremely suspect. The fair market value of my vehicle according to the Farm Bureau Claims Adjuster/Appraiser is $2,315. I've looked...'my' Pathfinder is just NOT out there in the market for that amount. I have a folder a half inch thick of printed out AutoTrader and Ebay listings showing similar Pathfinders from $3300...(I feel mine falls in here)...mostly $3800....and some upwards of $4500. The Pathfinders going for $2300 are either starting to show signs of rust in the likely places for this particular model or need a major repair...or have much higher mileage. And those starting to show rust issues are probably over-priced and should already be dropped to the bottom price category of around $500-700 which are the ones with frame rot..and unsafe to drive. Once the rust starts on this generation of Pathfinders, there's not much that can be done to slow it down. Mine has NO significant rust...has been meticulously maintained as far as mechanicals go....it's just not 'pretty' because I use it as the the 'utility vehicle' it is. Still though, before getting mushed by Farm Bureau's policy holder, I believe I could have realistically gotten $3100 for it easily and perhaps even $3500 locally. If I listed it on eBay...and the willing buyer had to travel to collect it, I would expect a little less...maybe just $2800 because of the expense of travel...or shipping.
If the insurance industry standard of determining Total Loss is 75-80% of Fair Market Value...Can the Claims Adjuster legally deem a vehicle a Total Loss if the Total Repair Cost is between 70 and 71%?
In my case I believe I can show that my vehicle is worth more than the Fair Market Value determined by the claims adjuster who was ALSO acting as an appraiser. In effect bringing the percentage of repair cost down as the true market value is proved. And by the way, just how big of a mile radius is this 'market' in considering a vehicle purchase? 25 mile radius? ...50 mile radius? ....300 mile radius?
What is a reasonable distance before traveling expenses to go get a vehicle or shipping expenses to have it brought to you are considered?
AnswerHi Patrick,
Yes it is ok to the insurance comapny to include the towing and storage. They should also take into consideration the cost of a rental car and the diminished value of the vehicle after repairs.
The decision to repair or total the car is completely up to the insurance company. The 75% of value as a total loss threshhold is only a guite. I have seen insurance companies total vehicles when the repairs were only 50% and I have seen then repair vehicles all the way upto 125% of value. They will do what ever they feel is in their best financial best interest. There is no law that says they must do one thing or another.
You can try to argue the point with them. Ultimately if you do not like what they are offering to do, your only options are to either accept it, negotiate it, or file a law suit against the at-fault person. Then the insurance company will have to do what ever the judge decides.
I hope this helps
Richard Hixenbaugh
