QuestionQUESTION: My car was parked in front of my home, and a flatbed box truck that transports portable potties slid on the ice and side swiped my car. The damage is from the middle of the back quarter panel to just in front of my side mirror on the drivers side. I have a 1992 Ford Tempo GL. Upon talking to the drivers insurance company, I was informed that they will most likely total the vehicle due to not being able to find parts for it anymore.
How do they find the FMV of my vehicle, and should the settlement be enough to replace my vehicle with a comparable vehicle?
Also, what would be considered a comparable vehicle?
ANSWER: They owe you the actual cash value prior to the accident. This is the amount you could have sold the vehicle for prior to the accident. Some insurers use book value, like NADA or Kelly Blue Book. Others use a vendor like CCC to give them a value. You should check Edmunds, Kelly, and NADA on line to get a rough idea of the value. Also check want ads for similar vehicles. Keep in mind that want ads are usually listed higher than the amount they actually sell for. There will be somre variation aong all these sources, so a fair amount is somewhere in the middle. Also, you mus consider the condition of the vehicle.
A comparable vehicle is not relevant.
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QUESTION: so the actual cash value, based on my findings from the above listed, place it in the $300-500 range. I can not replace my vehicle with that amount. What is my recourse if that is the offer from the insurance company?
AnswerUnfortunately the law states they owe the ACV, and replacing a vehicle is not relevant. I understand your frustration but this is the law in all states. However, if the vehicle is driveable, you can retain it, and use whatever cash they give you to make it roadworthy.
