Auto Insurance Claims: Total Loss?.... or Truck Theft?, nissan pathfinder, rear hatch

Question
QUESTION: I was towing a utility trailer with my 1991 Nissan Pathfinder last Friday and slowing to make a left turn when I was rear-ended by a 2008 CR-V.  The CR-V struck the rear of my trailer causing the trailer to break loose from the hitch.  The tongue of the trailer was then forced forward and ruptured the fuel tank...and the front of the cargo portion of the trailer collided with the rear hatch(rear door) of my Pathfinder.  I have a tool box mounted on the front of the trailer and the spare tire for the trailer is mounted to the front of the tool box.  It was the spare tire that collided with the rear hatch.  The surrounding body panels were not affected.  The only parts affected were: the hatch, the fuel tank, a skid plate that protects the tank from below, the bumper, and the mount for the license plate. The frame was not affected.  I can replace all those parts for less than 75% of Market Value...and keep my Pathfinder from being deemed a Total Loss.  The other party's insurance company is claiming that the cost of repair exceeds 75% of the Fair Market Value of my Pathfinder.  They claim Market Value to be $2,315...so 75% of that would be $1,736.25.  I disagree with the repair estimate...I think it's grossly inflated just SO they can take possession of my vehicle and recoup what they give me as a settlement by selling my Pathfinder at auction for salvage. I can repair my Pathfinder to my satisfaction and to the DMV's satifaction for far less than that. The fact is NO collision business has made an estimate as yet. The insurance company has determined that it exceeds 75%, but has shown no itemized justification for their 'estimate'. At the moment my Pathfinder is stored in the yard at a collision shop and when I called today I was told that the insurance appraiser did come by but he didn't even get out of his car to inspect the damage?..they said he was only there for about 3 minutes and left without talking to anyone.  

SO..MY QUESTION IS:

Rather than accept the $2,315 and release my truck to the insurance company...Do I have a right to demand SEVENTY-FOUR% of the fair market value AND keep my Pathfinder.  Basically saying that I will 'cover the repair costs' that exceed 75% out of my own pocket?  If not 74%..70%?... It would seem that if they're going to use 75% as the standard cut-off before deeming an automobile a total loss then they can't move down in percentages, can they?

I want MY Pathfinder back..I've owned it since it was just 8 months old. I don't want to have to spend weeks looking for another vehicle that I only have $2,315.00 to spend toward.  It would cost me much more than that amount to replace the vehicle I had.  It was the other driver's fault...100% their fault. Why do I have to accept something lessor than I had before she slammed into me?  I can show that they've also underestimated the market Value as well.

Thanks..

ANSWER: Hi Patrick,
You do have the legal right to cash settle on the pathfinder AND retain salvage.
A settlement on this basis doesn't work quiet the way that you envision in the latter part of your question.
To settle on this basis, their offer is still $2,315 less the salvage value.  They have sold enough total losses at auction to have a very accurate idea of what the pathfinder would bring.  
Assuming that they estimate it's salvage value to be $575, they would pay you $1,740 and allow you to retain the pathfinder.

If they want a lot more than $575 as the salvage value, then you can claim that they are under valuing your vehicle for settlement purposes, and secure value estimates from  sources such as www.autotrader.com   www.kbb.com   www.edmunds.com   and local used car dealers to establish a fair market value by finding cars of the same model and similar equipment for sale on those sites and at a dealer.

Anytime that a vehicle is deemed a total loss, it MUST be reregistered as 'SALVAGE'.  This means that you would have to turn the title over to the insurance company so they can have it processed.

Before you can re-license it for the road, you will need to repair the car and it will have to pass about two mandatory state safety tests (at your expense).  A 'salvage' title reduces the value of the vehicle by about 50%, so if it's ever hit again, your offer for settlement will be a lot less.

I hope you find this information to be helpful.
Your feedback by rating my answer will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area  



---------- FOLLOW-UP ----------

QUESTION: I've got an additional question that I just thought of.  My Pathfinder was towed to a auto-body shop after the collision on Friday May 2nd and it's been there since....incurring a storage fee of $25/Day. I picked up the Police Report the first day it was available Monday May 6th.  On Tuesday I went online and started the claim process by calling the phone number on their website (Mississippi Farm Bureau).  Before getting the Police Report, I didn't know what insurance company the driver at fault had a policy with.  The Farm Bureau representative on the phone took the basic information and told me the local Farm Bureau appraiser would call me 'soon'.  It took a whole week before I was able to talk to the local Farm Bureau agent and I had to call him!  I actually got his number from MY insurance company (USAA) who I guess breathed down his neck a little.  It was on Friday May 9th that he finally went to the collision shop to 'appraise' my Pathfinder by looking at it from his car for about 3 minutes (that part according to the collision  shop folks).  His first offer is obviously a low-ball insult...and I won't accept it.  His market value of my Pathfinder is off by at least $1000.00...and he's inflating the repair cost so that it works out to be 75% of market value.  Anyway, if it weren't for me waiting on him to go appraise my vehicle, I would have already relocated it to a free storage situation...and it would not have incurred as many $25/day fees.  That's going to happen on Monday May 12th...I'm having it towed to my house for now and will store it in the garage.  Farm Bureau is getting the bill for the wrecker service the day of the collision, (I refuse to refer to it as an 'accident'...idiot tail-gator) and the storage fees from 5-2 to 5-12..AND ALSO the wrecker service to have my vehicle relocated to my residence, all of the charges faxed to them... we agreed to that in the phone conversation of Friday...(that Farm Bureau would cover those expenses).  He's also approved a 7 day rental car for me through Enterprise.  That I haven't utilized yet.  My question is:  If I allow Farm Bureau to cover either or both of those expenses...but never reach a fair settlement as far as repair or compensation for my loss...and I just drop the claim with Farm Bureau altogether...will the fact that they paid ANY expense give them the legal right to my vehicle?  Would my letting them pay those expenses put me in the position of having to accept their offer to deem my vehicle a total loss...in other words be force to take their so-called 'market value' amount?  Am I about to get set-up by the Farm Bureau representative is what I'm wondering?...and should I, for now at least pay the collision shop myself for the storage and wrecker service.

Thanks,
Patrick

Answer
Hi Patrick,
No, the fact that you allow the adverse company to pay the tow & storage bills does not obligate you any way to settle the claim on their terms.

Since you feel that your pathfinder can be repaired for less than $2,500, you can file a claim againgst the other driver for damages based on estimates of repair.  Mississippi does have a $2,500 limit for small court action and attorneys are allowed.  The adverse insurance would provide a free attorney for their insured and you would need to handle your own case or hire an attorney.

Bennie