Auto Insurance Claims: Auto Insurance Claim Vintage Mustang, lower back stiffness, classic auto restoration

Question
QUESTION: Last week, I was driving my 1966 Mustang home after having some minor upkeep done.  I stopped at a traffic light that turned red, and while waiting there, a lady came up behind me, was distracted, and rear-ended me pretty hard.  I suffered some neck and lower back stiffness, and my car was damaged in the rear.  Since this is an all original vintage car, I took it to a classic auto restoration shop for an estimate.  They will have to replace rear bumper, lower panel, possibly tail panel.  Trunk lid is also sprung.  Worst thing is that unibody/trunk floor is also kinked and needs to be straightened.  I was told repairs would be between $3500 and $5000 depending on any hidden damage that might be found.

I claimed against the other driver's insurance company.  She was deemed to be at fault, and was given a ticket.  A couple days ago, insurance company's independent appraiser looked at my car.  Adjustor called back today, telling me they had a check in the mail to me for $740.00!  I was shocked!  I told her that's not even close!  She told me that any further amount above the $740 would only be possible if I left the car at a shop for repairs, and the shop called and negotiated with them (the insurance company), working off their $740 appraisal!  She told me she was required to send me this $740 check, even if I didn't agree with the amount! I have a couple of questions about this:

1.  Do I have to settle for this because it's their "policy", or is there a way I can get closer to the
true amount of my damages without having to have them pay the shop directly as she said they would have to do?  I may want to take my time and look for authentic New Old Stock parts, and do some of the work myself (or at least manage the job myself like a general contractor would with sub-vendors) when I am feeling better, so that I know it is done right.

2.  Before the accident, what I owned was an all original (mostly even original paint) "survivor" garage kept 1966 Mustang with 45,000 original miles and all original un-touched 1966 body panels.  Now, no matter how well repaired, I will no longer have a "virgin" car.  I will now have a classic car with some reproduction parts, paint blends, and straightened/repaired unibody.  If I ever show or sell the car, I will have to disclose these defects to a potential buyer, and the collector value will be less and somewhat compromised versus what I owned before the crash.  Am I entitled to any kind of "diminished value" compensation for this reason?

Any comments, advice, or assistance you could provide would be most appreciated.  I don't want to rip anyone off, but I feel I am entitled to a proper amount of money to make me "whole" again.  Thanks a lot!   Ken

ANSWER: Hi Ken,
First of all, DO NOT endorse and deposit the check.
Secondly, based on the value of your '66 Mustang, you should be carrying full coverage insurance including comprehensive and collision insurance.  If this is the case, you should file a claim with your own company, allow them to repair the car and they will then subrogate against the at-fault company for full recovery.
Since your car falls in the categories of "classic", "collectible" and "antique", your company would not use any non original manufacturer equipment although they could repair with used sheet metal, (instead of NOS), which should not affect your cars value.
If you don't carry collision, then your next best chance for full recovery would be to secure 2-3 detailed estimates of repair and file a small claims court suit against the at-fault driver.
You can learn the small claims court dollar limit for your state and other information at

http://law.freeadvice.com/resources/smallclaimscourt.htm

Once your car is completely repaired, an expert in diminished value can inspect and place a value on the diminished value.  This will be a separate claim against the adverse insurance company.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area



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

QUESTION: Hi Bennie:

Thanks very much for your prompt, detailed, and informative response.  As a follow-up, I have heard of, but have always been leary of using subrogation.  I do indeed have collector car insurance with the James Grundy Agency out of Pennsylvania.  I gave them a "heads up" about this accident, and they said they would be happy to help me.  I thought I should try to claim against the at-fault party's insurance company because they were responsible, and also I've heard some horror stories about subrogation that if my comapny gets "stuck" by not being able to get her company to pay them back what they paid me, that my rates may go up, or I may be cancelled for having an incident that my company laid out cash for and did not get reimbursed properly.  Are my fears about this issue unfounded?  I have had a very good driving and lack of claims record, and don't wnat to put that at risk.  Thanks a lot!    

Ken

Answer
Hi Ken,
In my opinion, your fears are unfounded about having to pay back your own insurance if they are unable to get a full recovery through subrogation.  I've never heard of such a situation happening and you are not putting any risk on your good driving record because this was a non-fault.
I strongly recommend that you process the claim through your vintage car policy and have your repairs properly completed.  Since they will only be paying what is reasonable and necessary to repair your car, the adverse insurance company will have no grounds to deny their subrogation claim.
Good luck in your decision.
Bennie