QuestionI am being given the royal runaround by USAA. I was hit by an uninsured motorist so USAA is in control of what, or if I get paid for DOV. They ignored my DOV request in 2004 and I have brought it up to them again, along with providing my own qualified appraisal.
They are stating case law, in that the state of GA agreed that the DOV formula 17-c was acceptable and the only method to use (Mabry vs State Farm) for DOV. BY using this formula, USAA paid me $60 for a $6000 loss in market value.
USAA says they will use another formula/method if I can tell them what that might be. I asked them to do their appraisal based on market value, just as is my appraisal but they are acting ignorant of this method, saying their "department" has never heard of any other DOV method other than 17-c.
Are there any other formulas? Am I being treated differently because the at fault driver was uninsured, and USAA has to pay for everything?
Six months after the accident I was hit again and Progressive laughed at my request for DOV and said they would give me $60, too. How do I get around this 17c formula, and win my case w/o out going beserk?
AnswerDear Mary,
Here is my short answer: the ONLY WAY to get around that decision is to file for UIM Property damage arbitration. Arbitration is not all that hard to go through, but USAA may have inserted a clause to let them force you to a jury trial.
Why don't you feel out the adjuster about arbitration as a means to resolve the dispute? At least that will tell you whether or not USAA will go through the simpler dispute resolution method. NOW, for a
1. LITTLE HISTORY ON SO-CALLED GEORGIA RULE 17-C FOR DIMINISHED VALUE (DV) CLAIMS
Here is the point: no court "MANDATED OR ORDERED" USE OF 17C! On November 28, 2001, the Georgia Supreme Court made a decision regarding automobile diminished value. In short, the court's decision, made it the law that all insurance companies doing business in Georgia must assess and pay for any loss in market value for vehicles damaged in a wreck and repaired, as part of the damages of the claim. This loss in value is known as Diminished Value or DV.
Mabry v. State Farm Mutual Auto was a class action lawsuit and 17C was used ONLY FOR THE PURPOSE OF FIGURING OUT WHICH OF THE PLAINTIFFS SHOULD GET PAID AND HOW MUCH. Thus, the case was settled and the PARTIES AGREED to the use of a "formula" referred to as the "17C Formula".
NOTE: THE COURT NEVER MANDATED USE OF THIS FORMULA: IT WAS AGREED TO BY THE PARTIES.
The fact that most insurance companies are trying to use the formula in your state should tell us something: 17C FAVORS INSURANCE COMPANIES.
2. FALSE REPRESENTATONS BY INSURANCE CLAIMS ADJUSTERS REGARDING THE "OFFICIAL" APPROVAL OF 17C.
Anyone filing a DV claim will always get the earful of allegations regarding so-called "official" state approval of 17C. Tell the insurance claims adjuster that it just ain't so!
In the first place, we hear the insurance adjusters telling us that the formula 17C is distributed by and endorsed by the state insurance commissioner. FALSE: The Georgia State Insurance Commissioner will tell anyone and everyone that they "neither endorse nor authorize ANY formula for the calculation of diminished value”.
Here is yet another MISREPRESENTATION by insurance adjusters: they will tell anyone who will listen that 17C is "state mandated and in accordance with Georgia law."
WRONG AGAIN! There is NO “Georgia Law" that requires the use of this formula for the calculation of diminished value.
3. USE YOUR HIRED GUNS FOR THEIR REPORT, BUT ALSO MAKE THEM TAKE APART THE 17C ANALYSIS. You have provided no information whatsoever to allow us to know the first thing about the facts of your claim. And that is fine, since you also asked about procedures and I will go about answering those questions.
Have your hired guns attack the 17C analysis directly. For example, let's say that they use the NADA values in 17C. Don't they know that NADA varies so much from area to area and state to state that any comparison across the nation is virtually worthless?
Why don’t they agree to use a formula that is based upon sites where one can control the variable of interstate markets by using the zip codes allowed in www.edmunds.com and in www.autotrader.com?
Next, although the NADA guide does already account for mileage, this 17C group wants to make a separate deduction for mileage. Tell them to get lost on any such allegations. It just is not going to be allowed at arbitration.
Ask the insurance claims adjuster just how she intends to measure actual damages from her perspective if disallowed to use the projected or actual cost of repairs. 17C says that you are not to look to the projected or actual cost of repairs. THAT IS INANE: the market place is going to make a negative adjustment a lot sooner with $15,000 in repairs than if only $5,000 had been spent on repairs.
There are other deficiencies with the formula, and your professional appraisers can tell you. But the main thing for you would be to make darn sure that your appraisers DO ADDRESS the deficiencies with the 17C formula, SPECIFICALLY as regards the adjuster's analysis.
Finally, I would make a listing of all of the problems with 17C as I have identified them above and as further listed by your own appraisal experts. Present it in writing, and ask for a response in writing.
If the insurance claims adjuster repeats the garbage they gave you above, I would make a complaint to your state insurance commissioner http://www.settlementcentral.com/links.php
4. FINAL TOPIC—COMMUNICATE IN WRITING AND "DEMAND" NOT "ASK"
Communicate with the adjuster in writing, showing your own analysis of value. It is fine to speak over the phone, but have your ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you locate the feedback form on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D.
http://www.SettlementCentral.Com
