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Replacement Cost by Insurance Company for Totaled Vehicle

joeciajoecia Posts: 2
Hi!
 
I totaled my new 2004 Mustang and the insurance company wants to pay me for the vehicle what it's worth BUT DOES NOT INCLUDE SALES TAX, LICENSE, DOC FEE, ETC.
 
Shouldn't they to replace the vehicle -- that's what it cost to replace it!!! I already paid the sales tax once, SHOULD I HAVE TO PAY IT TWICE ???
 
Thanks. URGENT
 
 
This is how they figured the total value:
 
17646.00 2004 Mustang
 
3500.00 rebates
 
1429.33 sales tax
 
13.75 title fee
 
500.00 Deductible
 
15089.09 ins co retains salvage value
 
 
 
4438.57 salvage value
 
10650.61 owner retains salvage value

IS THIS RIGHT ????

Thanks.
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Comments

  • You might also check in our popular discussion called Questions About Auto Insurance & Accidents. Some of our members who have expertise in this area may be able to provide more info, though it looks like mr_shiftright has given you as much as possible without seeing your policy.

    kirstie_h
    Roving Host & Future Vehicles Host

    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.

  • This is my *corrected* response to your question (too many typos and I also did some further checking for you).
    -------------------------------------------------
    It looks like they ARE giving you sales tax, license fees (remainder of unused portion of your license fees that is) and doc fees.

    You need to take out your insurance policy and read it to answer this question as it pertains in your state laws. In California they have to give you the sales tax plus the Actual Cash Value (ACV) which is not the same as "replacement cost". ACV takes into account everything associated with depreciation of the vehicle once it leaves the showroom floor. So you aren't going to get the price of a brand new Mustang + sales tax, but rather a slightly used Mustang + sales tax, etc.

    As for the actual numbers, it's kind of hard for a consumer to know what a good settlement is because most price guides, like the Blue Book, don't give values for 2004 "used" cars. So you have to figure something like the price of your car new versus how much the insurance company has knocked you for depreciation. So what I mean is that the depreciation amount has to seem reasonable.

    If you want to dispute the settlement numbers, you can always hire your own independent appraiser and then go into arbitration. This will cost you about another $500 to "fight" the insurance company but there is no guarantee that the referee in the arbitration will give you what you want. He may 'split the difference" between what you want and what the insurance company is offering, and you have to decide beforehand if this is likely to be more than the extra $500 you spent to get to arbitration in the first place.

    So read your policy and chat with an appraiser, would be my advice. Also you can contact your State Insurance Board for rules and regulations in your State.

    Good luck with this

    MrShiftright
    Host
  • swschradswschrad Posts: 2,171
    is that justice would require you to pay all the appropriate taxes, fees, etc. on the replacement car. sorry. just because I drop a camcorder in the john doesn't mean the state takes $38 out of a cop's salary because I can't put my hand through an obvious grip, and flip the strap over my neck.

    no, I paid the sales tax on the item because I bought it, and that's the law. if I have to buy another one tomorrow, there's no exemption for klutzes and fools.

    sorry to say that if somebody T-bones you as you turn on the green light to get to your own driveway 500 feet away with a new car, and you buy another car, you are still liable.

    in a really perfect world, the state's insurance law would mandate that the person at fault pay the associated processing fees, like the guy who loses a lawsuit has to pay court costs plus (usually) legal fees for both sides.

    but somehow, that seems to not transfer to indemnified torts, as they would say down around the courthouse. I wouldn't get 'em either from my insurance outfit. they will pay the sales tax on repairs to my car, however.
  • Hi - I hope I am posting in the correct place.

    My 1997 Ford Taurus LX sedan was totaled while it was parked. I'm trying to do some research and see what the insurance company is going to pay me - I'm concerned because I still have car payments left to make - not to mention need down payment for another car.

    The adjuster called and said that the car needs to be taken to another location to have a value set and they use "ADP" to determine the market value.

    The car has many options - power moon roof About 14K miles less than the norm (has 68K not 84K). Leather/power seat, cd changer, keyless entry, new tires (4 months old now) etc.

    Any ideas? suggestions? Tips on what to do or say If I don't like their quote? (BTW other drive is obviously at fault and did have insurance)

    Thank you in advance very much for any input.
  • You could appraise it here at Edmunds for starters. Just hit the "used car" button up top of this page.

    Also you can go to www.traderonline.com and check out similar cars for sale. The insurance companies use a computerized appraiser and THEY MAKE MISTAKES on miles, trim level, etc., so make sure you double check that.

    As for your loan, you can't always expect the FMV (Fair Market Value) to be enough to pay off your loan, but if you've had the loan for a few years you may have enough equity in the car by now. But since you were also paying interest, it might turn out that you'll get less than the payoff for the car.

    Be prepared to fight if you don't like the payoff, but do your homework so that you can show them comparables for sale and price guides.

    Numbers on paper work better than just words on the telephone.

    Sometimes the insurance company will cough up more if you are persistent and diligent.

    If you can't get anywhere with them, hire your own appraiser and submit that as proof. If that doesn't work, you may have to try mediation with a referee. If that doesn't work, you may need a lawyer.
  • kank2kank2 Posts: 2
    My car, 2001 Toyota Camry ce, 59k on it, is totaled by other driver.
    My question are:
    1. How much is it cost to a replacement?
    2. How and what do I do if I don't accept insurance co's unfair offer?

    Thank you very much for any suggestion.

    Kank2
  • See response #8 above Kank!

    Host
  • Hi,

    I had an accident three days ago, a woman in an SUV made an illegal left turn in front of me and I crashed my '93 Acura Integra straight into her passenger door. At first I thought the car might be drivable but, the hood, front bumper, lights etc are severely damaged and bent and the car overheats immediately when turned on then makes an awful grinding noise for about twenty minutes after the car is COMPLETELY shut off. The heater and a/c no longer work, the list goes on and on. This car is paid for and I only have liability coverage. I believe I was not at fault for the accident, and her insurance should cover my car which they will no doubt total out. I am freaking out now though because at the time we didn't have the police come out, I think she knew it was her fault and she didn't want a ticket for failure to yield right of way, and I had to pick up my little sister. So now is it up to the insurance companies to decide who's at fault? How does this work? I am completely broke and if her insurance doesn't cover me I'm in deep trouble because I can't afford to get another car. Your help and advice on what I need to look out for and any steps I can take to help my situation are DEEPLY appreciated.

    Here is how the wreck happened, I'm curious to hear who you think is at fault...
    This happened on a four lane street, I was driving northbound in the right hand lane, about 700 feet from the next major intersection which had a red light. The northbound left lane next to me had a line of about 20 to 30 cars not moving, waiting for the left turn light to turn green but my lane was empty all the way to the light. I proceeded at the posted speed limit, perhaps 5 over IF THAT toward the light to make my right hand turn, when southbound SUV appeared in a space between two of the stopped vehicles in teh left lane, and proceeded to turn left in front of me out of nowhere. The SUV did not brake when entering my lane nor did she look to see if my lane was clear to cross, and when she did finally see me she made no attempt to stop but instead attempted to complete her left hand turn and pulled her vehicle out blocking my lane completely from the front, and with the line of cars in the left hand lane I had no escape route so I tapped my brakes and prayed for the best. My front end hit her vehicle on the front passenger side door.

    Let me know who is at fault and what I can do to get my car totalled faster so I can get something else to drive to school. PLEASE HELP ME!!
  • Well we can't possibly answer the legal question of fault, all we can do is advise you perhaps on how to "work" a claim once fault is established.

    If she doesnt admit to fault and you have no witnesses or police report, you may have to resort to some legal means (small claims court?) to plead your case and hope for the best.
  • Thanks for your reply...I know you can't possibly tell me who's at fault legally, I am more interested in hearing people's personal opinions based on the events that occured, since it is now my word against hers basically and I'm wondering how an outside eye would view the situation. Now when it comes to fault...perhaps this is only in Texas, but I was under the impression that a failure to yield right of way is ALWAYS at fault in an accident. I was in an accident a few years back where I was the one who failed to yield r.o.w., and I was sued by the girl who hit me for a substantial amount of money for 'injuries' (THAT was a joke...) and her car. After almost a year of searching for a way not to pay her pain and suffering, my insurance finally caved and gave her like $10,000. AND THIS GIRL WAS SPEEDING, DANGEROUSLY! What I heard from my insurance's lawyers, the judges, and my own lawyer is a failure to yield r.o.w. means you're at fault, no questions asked. Is that wrong, did I misunderstand that? I'm not shady enough to go after fake injury money, I just need what I deserve which is my car or money to replace it. I'm afraid it's not going to be as simple as calling insurance and getting a check...please, ANY ADVICE on what I can tell them, things I can do to speed up the process, ANYTHING to turn this in my favor...I need all the help I can get!

    Thanks for listening...
  • Your best approach rests on YOU believing that you were not at fault. Without witnesses, it all rests on YOU being convincing to her insurance company or to the referee or judge hearing the small claims case.

    You should make up a very detailed diagram, showing compass direction, line of cars, stop signs or traffic lights and whether they were red or green, and then of course HER path and YOUR path. You could even take photos of the intersection and include them, with "X" marking the spot.

    This is all you can do, to give your version of what happened.

    Next time, get a witness if you can and call the police. It sounds like you *may* have even violated the law by not filing a police report (state laws vary, in my state if damage is $500 you must file a police report---I think that's the rule anyway, something like that).

    Without witnesses you are definitely between a rock and a hard place on this one.
  • In Texas, you are not required to report an accident to the police if both parties agree to exchange insurance information on their own. It's only illegal to leave the scene of the accident if you drive away without giving your info to the other party OR if the other party says they want a police report and you refuse to stay.

    We do have a witness, but I don't have a clue who's fault he's going to say it is...my lawyer friend is going to contact him for me and find out. Thanks for the advice, I never thought about going back there but that intersection is always backed up in that one lane during rush hour and cars are always cutting through the stopped cars to get into the Wal Mart...some well taken pictures of other cars doing what she did would prove my point.

    Thanks for your help, I'll let you know what ends up happening...
  • Well good luck and sorry for your misfortune. I hope justice is served.
  • My Lexus LX 470 - still under warranty - just burned, with all our possessions and Xmas presents inside. The car died on the highway and there was a fire under the engine, that spread and engulfed the car.

    There was no apparent cause. The car just died! I want to hold Lexus responsible for the contents of the car which my auto insurance (AAA) doesn't cover. I have no homeowners to cover contents either.

    How should I proceed?

    THank you.
  • You need legal advice on that one. I'm a bit surprised AAA doesn't cover you however. But by all means consult expert legal advice. This is too complex an issue for random suggestions I think.

     

    MrShiftright

    Host
  • bh458bh458 Posts: 1
    Hi,

    Just several days ago, my lovely 96 Integra GS-R was stolen. I do have comprehensive coverage. Just wondering how much I am able to get back from my insurance company. And if it offers me too little, what could I do?

    My car info:
    96 Integra GS-R, Perfect condition, Multi CD Disc, 100,000 miles.

    thanks,
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,664
    if you are offered too little, and you dispute the settlement, I'll bet your insurance policy requires you to go to arbitration. You MIGHT be able to avoid this if your insurance company tells you they will review an appraisal from your own appraiser. This may cost you about $150. If the insurance company doesn't like your appraiser's appraisal, then you go to arbitration which will cost you about another $300 or so. Generally, unless the arbitrator reallyl has it in for you, you'll get back a settlement that will usually cover the costs to get to the arbitration in the first place, but perhaps no more than this.

    If you are disputing the settlement, you need evidence to show why it's not a good settlement. This will require you to look for "comparables" which mean comparable in miles and condition and equipment to your car. Also, you can look at the Kelley Blue Book at your public library, but be sure to make all deductions for miles, condition, etc. The book tells you how to do this.

    good luck,

    MrShiftright
    Host
  • kartooskartoos Posts: 6
    My 2004 Passat is a total loss after being involved in any accident (fortunately nobody was hurt and I walked away with no broken bones....impressed with the way the car handled the crash). Anyway, my insurance valued my car (16000 miles) at 21,371 $ (after the deductible)....I am not sure if this is a the right price. KBB gives 21,555.
    Should I just take it ? or maybe re-negotiate with insurance ? Any advice would be greatly appreciated...thanks.
  • MrShift@EdmundsMrShift@Edmunds Posts: 43,664
    If they are offering you KBB retail price, that's about as good as it gets. If it's wholesale price they are offering, well, then you can start complaining. But KBB retail is actually very generous.

    Why dont you double check and use Edmunds' True Market Value system as well. It's on the edmunds.com Home Page when you click on "used cars". You'll see a tab for "appraising your vehicle".

    NOTE: make sure their offer doesn't include tax and license in that figure they gave you. You are entitled to tax and license fees over and ABOVE the value of the car. Sometimes they combine the two and try to sneak that past you...so in essence you are not getting KBB you are getting 10% or so less than that....as license and fees in some states equals almost 10%.
  • kartooskartoos Posts: 6
    thanks for the info. I just used Edmunds TMV system to for an appraisal and got a dealer retail value of $20,317. My insurance gave me an actual cash value of 20,556$, not including the tax and license...so it looks good.

    Also I was asked to sign a power of attorney to transfer my title over to the insurance company...is that the normal procedure ?
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