QuestionWe took our 1998 Chrysler LHS into the auto body shop for a valve shop and after dropping it off they called to say that one of their employee's while moving another vehicle inadvertently crashed that vehicle into our Chrysler, admitting their responsibility. They advised that the estimated repairs to the bumper and hood would be about $2,220 and the insurance company arranged for us to use a rental car until the repairs were made. This was 3 days ago. Now today we received a call from their insurance company advising that their adjustment department, because of the value of our vehicle is $700-$800, wants to total the car and give us only the money value of the car. Because the car was in their care and custody we feel that the repairs are the sole responsibility of the insured and his insurance company. We have taken excellent care of the vehicle through this same auto body shop and in fact last year spent about $3,000 for a major tune-up, etc.
What is our recourse, if any? We carry liability coverage only on the vehicle so we believe our insurance company would not be concerned in becoming involved, but we also feel that had the damage occurred while we were driving the vehicle and it was our fault then we understand the limitation of dollars be set by theh value of the car, but this was not our fault.
Thanks for any input you may have.
Answer Hello Patricia,
There are several issues here. First the theory. No insurance company, whether it is your carrier or the liability carrier, has a duty to pay you more than the value of the loss. In that sense, if your car is worth only $700-800 (regardless of what you may have done to keep it in tip-top shape)that's what it is worth. You are not entitled to a payment of $2200 for an $800 car.
But here are the catches. First who decides the value and who decides the cost of repairs? I wouldn't take just one person's word for that. Don't take either of these quotes as absolute.
In the case of repairs, what was called for in the estimate? New factory parts, too much repair time? Could the car be "saved" more cheaply? Take it to another shop or arrange for another shop or appraiser to look at it. The point is you need to get more than one estimate. If there is a reputable repair shop that can repair it for 80% of its value or less, you are in position to negotiate that with the insurance company. But beware, if that amount represents less than adequate repairs, you are going to set yourself up for future problems, not the least of which is a devaluation of the car. And, the insurance company does not necessarily have to go along with such an estimate.
One other glaring observation ... who decided that the car is worth $700-800? Was it the insurance company?
You are going to need to do your homework. Here's how to arrive at a value similar to how an insurance company would do it:
1. Using online resources, seek information for determining the value of your car.
2. Insurance companies will generally arrive at a value that lies somewhere between the dealer price and the trade-in value. But other factors are considered as well. If your car is not in "excellent" condition, deduct value. If your mileage exceeds 15,000 per year, deduct again. With this process in place, you should be able to arrive at an estimate that closely matches what an insurance company would offer.
If in the end your car really is worth somewhere in the rage of $700- 800 and the cost to repair really is in the range of $2200, prepare yourself for a total loss. The company will not pay more than a fairly determined value. And, you would not be entitled to it, regardless of the circumstances.
Hope this helps. Good luck.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
