QuestionQUESTION: Good day to you Barrett Smith, I'm located in California, My wife was in a collision on 2/7, my wife was not at fault, the insured Insurance company at fault is claiming my wifes 2000 Saturn SL2 a total loss do to the value of repairs costing the party at faults Insurance company more than what they state my wifes car is worth, my wifes Saturn was in over all purtty good condition, the only blemish the car had at the time of the collision was the clear coat flaking from the hood and the odometer reads 236000. But the engine was rebuild at 198327, I then submitted proof of the repairs to the Insurance company, them giving me a credit of $486.00, The party at fault Insurance company gave my wife a settlement offer of $3153.44, I've then been doing some searching in are area for the same type of car and there going for $4995 to $6000 witch is allot more from the settlement they offered my wife, I called the Insurance Company and told them that I did some searching for the same type of car and that there where much higher in price compare to there settlement offer, Insurance adjuster said that my wifes car had high mileage, I then reminded the adjuster that the engine was rebuild, I then stated to the adjuster that the mileage on the odometer does no longer reflex the true wear & tear of the engine nor the life span of the engine, the adjuster seem not to care... I'm question is should the Insurance adjuster settlement be equivalent to the actual market value of the same car sold at the current time. Thank you
ANSWER:
Dan,
Thank you for the question and I hope your wife was not injured and is doing well.
You are correct in that the at-fault party (not their insurer which is an important distinction!) owes to restore you to the same condition (economically) that you were in prior to the loss; No better…but no worse!
One method of doing so is for you to find several comparable vehicles of the same make, model, condition and mileage within a 50 miles or so radius. Once you find them, add the cost of a new engine (as was yours) and this is the amount it would require to place you in the same condition you were prior to the loss. Don’t forget to add sales tax and tag and title transfer fees.
Another means may be for the insurer to provide you sufficient funds to buy another “like kind, quality” Saturn SL2 and provide you sufficient funds as to replace the engine with yours…assuming it wasn’t damaged in the loss. This too would put you back in the same condition as prior to the loss.
I would also demand the insurer provide you all information they relied upon to make their offer. Once you get them, look it over carefully and blow holes where you can to show that their findings were inaccurate.
Generally speaking, we find that in total loss situations the insurer offers an average of $1,200.00 to $2,500.00 less than what the true cost of replacement is. Rarely do I find whereas an insurer has tendered their best offer first…they start off low and leave it to you to negotiate knowing that most won’t challenge them or will do so poorly , allowing the insurer to settle for a low settlement. It’s not right…just the way it is! Understand that every dollar an insurer can avoid spending becomes 100% profit to them! There’s only a few professions I know where one can actually turn 100% profit…one of them is the oldest!
If you have full coverage (collision) on the vehicle you may elect to try to get a better settlement by making a claim with your own insurer.
If you don’t have collision coverage then you will be dealing with the at-fault party and their insurer. Remember…their insurer owes you nothing (they didn’t hit you) the at-fault party owes for all your damages…their insurer owes them a defense to keep them out of harm’s way and part of that is to make a settlement with you as to protect their insured from a lawsuit from you whereas the insurer may very well be on the hook for ‘breach of contract’ or even “Bad Faith Dealing” if they fail to properly indemnify you for your loss.
The adjuster really doesn’t care about you or your economical welfare…what he cares about is making his bosses happy with his performance in obtaining a low settlement.
Couple suggestions if it were I:
*Keep a rental car or claim “Loss of Use” from the at-fault party from the date of the loss and until a reasonable settlement is made and then a few more days to obtain a replacement vehicle.
*Don’t allow your vehicle to be moved until you get a fair replacement cost, plus tax and tag transfer…the insurer will be anxious to relocate the vehicle to mitigate ongoing storage costs (if applicable)…if you allow them to remove the pressure on them…it will be on you!
*Don’t be afraid to ask for a reasonably higher value so you can negotiate to get to a value you agree with…two can play their game. Don't go crazy with this or it can bite you.
There are other things you may or may not do to make things go smoother and get a better settlement but space and time restricts me going into those herein.
I hope this helps you get a more reasonable settlement…remember…it’s your vehicle and what you are virtually doing is selling the vehicle to the insurer for the value it was worth prior to the loss so you can get another just like it.
Good luck to you and your wife! Hope this was of help. Let me know how it turns out.
Barrett
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---------- FOLLOW-UP ----------
Collision Damage
QUESTION: Barrett
I would like to thank you for the information you shared with me in regardes to my wife's total loss claim.
I would also like to thank you for your concern in my wife's condition, my wife is doing well.
Barrett I would like to share with you that the collision was very miner, with little damage on the driver side as you may see in the picture, my wife's 2000 Saturn SL2 is still drivable, the only thing that I notes is the wheel alignment a little off.
On 2/23/12 the total loss adjuster(Explorer Insurance) contacted me to inform me that some adjustments were made to are claim. The new settealment they offerd us was $3360.75.
I then told the adjuster that how could they be offering me lease that what this car is going for on the market in my state(Redlands,CA)the claim adjuster express to me ones again that my car has high mileage, I then reminded the claim adjuster that my wife's engine was rebuild, also that there was no way the odometer could reflex the true value or life of the engine.
The claim adjuster then saids to me I'm sorry but you telling me that your odometer doesn't reflex the true mileage of your car doesn't help you for your defense with use. So now I tell the adjuster I would like to know how you came up with my actual cash value of my wife's Saturn
Claim adjuster states the used a independent company(CCC Information Services)So I then ask adjuster to email me a copy of that report.
There compairing my wife's 2000 Saturn SL2 with a lower end models that don't have the exact factory features that my wife's Saturn has.
Barrett my question is can they really do that, use lower end models or same model but with less features,
My other question is do they have the right to push on me the salvage car, because I was never given the chance for me to decide if I wanted to keep the car, instead of me asking them how much would it cost me if I keeped the car, they just made there own choice and offered me the following.
Explorer Insurance Final Settlement Offer:
Actual Cash Value: $3638.43
Sales Tax 7.75%: $ 281.98
Sub-Total: $3920.41
Less Salvage: -$ 550.00
Salvage Tax 7.75% -$ 42.63
Transfer Fee: $ 15.00
Salvage Certificate:$ 18.00
Final Settlement: $3360.78
I then told them that they could keep the car and pay me out in full and they said no that if I want I could sell the car to there highest bidder.
Barrett please share some light on me with is, Thank you ones again for all your help and information.
AnswerDan,
I’m glad to hear your wife is well.
To answer your question; “Can They Do That” ; Yes, they can if people alloy them to but they should not be doing it, and the laws and regulations governing them prohibit as well.
I would suggest you Google CCC and see what litigation has occurred over this organization in the past.
As stated earlier, I am no attorney but I can tell you that as the victim of another’s negligence that you are owed to be placed in the same condition you were before the loss…no better, but no worse. If the insurer refuses to make you whole…you may seek recovery against their insured.
If your value research is accurate and applicable than stick by it! Show proof of the recent engine rebuild and demand it be considered in the vehicle’s pre-loss value.
Make a report to your insurance commissioner and report the abuse you are getting from the insurer and the bogus information they are trying to settle your claim with.
I don’t believe they can saddle you with the salvage…if they settle it as a total loss…I would see to it that they deal with the salvage.
Good luck!
Barrett
