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Replacement Cost by Insurance Company for Totaled Vehicle

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  • Yep, they came from NADA.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    The initial repair estimate on my '04 Mustang Coupe is $8,520

    The operative word is "initial". After the body shop tears into it, the chances are very good they will discover hidden damage so why wait to declare it a Total?
  • My question exactly! I finally made contact with my agent yesterday and he's wondering the same thing... he was going to call their claims department today and find out what their reasoning is. He thinks they ought to go ahead and declare it totaled. Maybe his opinion can sway them into taking some action here sooner rather than later.
  • does anyone know if the 2007 vue cd player is mp3 compatable and if not can the dealer install the option or is there a good after-market option I can consider?
  • kyatskyats Posts: 3
    I have a 1997 Dodge Dakota 4x4 SLT that was involved in an accident last week. The estimate came in at $5100...which I think is way to high. The autobody shop quoted all new parts on the vehicle....front quarter, hood, grill, front bumpber, paint etc. The NADA value is between 5100 and 6450. The insurance adjusted will be looking at the vehicle on Monday. Mind you I have no experience in repair costs, this is my first claim in 30 years...but in looking over the vehicle with the autobody shop there is no damage to the front differential or frame. The auto body shop indicated that the insurance company may ask to have used parts installed on the truck. I don't understand the 5100 estimate based on the NADA value.
    :sick:
    Is this an acceptable insurance practice...since I have been paying full coverage on the vehicle?

    If the truck is a total loss, can I buy it back from the insurance company for the salvage value?

    Do I have any other options
  • cccompsoncccompson Posts: 2,388
    $5100 is, sad to say, not much these days when it comes to damage.

    The vehicle is a total loss. Decide whether you want to keep it or not. The insurance company will be happy for you to take it and less money from them.
  • njeffreysnjeffreys Posts: 2
    last week someone hit my car in a parking lot and left..no note..no witnesses..
    ins co says they very likely will total it. My situation is I am not in a position to buy another vehicle. what are my options?

    I have a 99 Mercury Villager Estate- ir runs fine but had 95 k milelage.. I really like it and hate to let it go..tires are good, ac works, tinted windows...

    if they allow me to "buy" it back for salvage, will I then be unable to get even liability ins which is required by law?
    I am a senior citizen and on fixed income.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    Sure. Liability covers your personal financial potential obligation as a result of a crash deemed to be your fault. The vehicle has nothing to do with it.

    Does your policy include Uninsured Motorist Property Damage Liability? If so, make your claim under that coverage because the deductible is a lot less. Usually, no more than $100.
  • njeffreysnjeffreys Posts: 2
    someone referred me to the Texas State Ins Dept who told me while ,.we are required by law to have liability insurance, ins companies are not required to sell us liaability insurance...
    so if I "buy" back vehicle as salvage...there is no guarantee I can obtain liability since my ins company will report it as salvaged...aghhhhhhhh...

    If I had known this I would not have filed a claim and would have driven the darn thing til it fell apart..

    now it appears I will be looking for a very very cheap car...

    thanks for your help...

    I do have uninsured motorist coverage and that is what I am using...
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    report it as salvaged = ususlly pertains to and regards Comp and Collision, not Liability coverages.
  • Is it possible to get the insurance company (GEICO) to replace my Honda Civic hybrid. It is a 2008.
    thanks.
  • I was involved in a highway speed accident 1 1/2 weeks ago. I feel lucky to have walked away as a guy a mile up the road died in his accident. Weather quickly changed and there were 6 accidents in a 10-15 minute period.

    Anyway, I have a 2005 FX4 F-150 4WD Crew Cab with 32,000 miles.

    Current estimate to fix is coming in at somewhere between $11,000 and $12,000. The body shop is using $20,800 (Year, model, miles, options and sales tax) as pre-accident value. In Kansas the threshold to total a vehicle is 75%.
    Which means using his value he could repair up to $15,600. I believe even the 75% ($15,600) is valued too high for a 2005.

    I am prepared to just have them pay me the cash, satisfy the loan and be done with the vehicle. Plus they need 26 working days to fix the thing!

    Does Kansas have a diminished value option? I know that the guy at the body shop sees this is a great chance to have a big repair in the shop. He said I could always sell it once it is repaired so I don't lose too much money. I said great have one of your guys give me a bid, he should know you are good for the work. Of course he says, They will not bid until the damage is fixed. Let me take a wild guess, it will be bid at less than the repairs estimate.

    Thoughts or ideas?
    Thanks, Paul
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    I was involved implies the crash was not another driver's fault. Thus, you don't have any Rental Car expense to claim from another company.

    Ask the body shop what percentage of estimtate usually involves "hidden damage"?

    Don't expect your insurance company to pay off your loan if the balance exceeds the worth of the vehicle.
  • I was at fault for my accident. I would just like the insurance company to utilize the repair funds to satisfy the loan rather than repair a vehicle that I will have doubts about for as long as I own it.

    Luckily, we have three vehicles so there is not the need for a rental car.

    To me, putting $12,000 into a 2005 Ford Truck is a not a good idea. There would undoubtedly be more repairs as they begin to fix things, so I would imagine it is cheaper for the insurance company to just pay-out the initial estimate and be dome with the claim.

    Is it my option as a policy holder to have the truck repaired or not? Provided the loan is satisfied I think this would be a moot point?

    Paul
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    The final cost of repair is an estimate of value lost due to the crash. You have the option of applying any and all monies that would have been paid to repair anywhere you like such as a savings account, loan payoff, or what have you.

    Suggest you pay off the loan and seek bids from salvage yards for the remains.

    Any storage fees will be up to you so don't sit on your next move.

    Remember to pro rate the license fees and if applicable the Sales Tax.
  • here my problem...

    I bought a brand new 2007 saturn ion. I'm half way through my payments. I also purchased a 5 year extended warranty. On the 24th of december I parked my car in front of my house which also happened to be underneath a light pole. at around 530-545am a car rear ended my parked car then proceeded to flip over and hit another car some 15-20 feet away. the impact had enough force to move my car about 10-15 feet from where i parked it. This all happened while i was sleeping in my bed. I woke up and checked to see if the driver was okay, and she was. I found out yesterday that my car has been totalled but they didnt give me an amount. Im afraid that the amount i get will not be enough to pay back saturn for the car i purchased and i dont have enough to buy another car. what are my options, and is there any way i can get reimbursed if the remaining balance is indeed more than what i get for my car being totalled? I'm really worried... I had a perfectly fine working car practically new and i woke up to a totalled car...
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    Two separate and unrelated facts.

    1. Balance owed on your loan.

    2. Value of your vehicle.

    They were not related before the crash & they are not dependent on each other after the crash. When you owe more than the value of the vehicle, you still owe that amount. Insurance companies do not care about your loan balance and why should they?
  • I was unfortunate enough to be broadsided 5 weeks ago by a lady in a Mercedes who ran a red light. There was a witness and she was cited.
    My car is a 2010 BMW 335 d that I ordered, waited for, finally received, and drove for less than one month before it got jacked. It only had 1100-1200 miles on it (I didn't even get to put the new plates on yet). It had to be flatbedded off.
    Her insurance company (the "Good Hands People") jacked around so long that I had to go ahead and file the claim with my company (USAA). That's All State's stand. USAA said that they expect no problem settling up with them later.
    After the tear down, USAA wants to call my vehicle a total loss but only want to pay me $40,000. This is a $54,000 car, essentially brand new. Edmunds prices a similarly equipped 2009 model at $46,560 retail.
    Options anyone?
    Smashed by texter in Ohio
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    Direct USAA to buy you a new one & that you will expect a depreciation deduction of $ per mile. I don't know the rate of deduction, but don't expect a brand new one without some depreciation involved.
  • I was staying at a well known hotel chain when the hotel and valet manager came to get me to tell me that my vehicle was totaled by one of their valet drivers while moving my vehicle to a secondary garage a few blocks down from the property garage. I am in discussion with both the Valet company and their insurance company about settlement, outside of litigation at this point. I want settlement in the amount of retail value of my vehicle plus my original down payment and the two years of payments made into the vehicle since I am now going to have to start this process all over again.

    The insurance company only wants to pay a low ACV (Actual Cash Value) and the valet company is "stuck" because they just want to allow the insurance carrier to pay the ACV and the settlement claim be done. I am not asking for more than what I feel should be provided with consideration that they had full control of my vehicle. I was not planning on "selling" or "trading-in" the vehicle anytime soon, but paying it off and keeping it for a few more years.

    I am having a difficult time negotiating the amount since insurance companies are used to low balling the values, regardless of fault (valet driver was at fault in this case, and three cars involved) and there are not precedents on insurance companies paying any more, outside of litigation. However, this is not a normal situation.

    Why should I be in an upside down financial situation because of this companies negligence, especially when they are in the business of driving other people's vehicles? I have line item justified my settlement requests and am still in negotiation mode with valet company upper management and legal counsel. I also have all the pictures of the totaled vehicle which is completely damaged, since it was flipped and rolled and had a traffic pole fall on it after it knocked it off the base on the sidewalk.... and the hotel chain is taking an interest in whether the valet company is attempting to settle?

    I would like to provide Replacement Value assessment to the insurance carrier so that they can "line item" there settlement within their companies policies but having a difficult time finding that. I am using a current vehicle, less two years old with same mileage as what was on that vehicle when I bought it in 2008, two years old.

    Any suggestions, recommendations, links, etc... are welcome.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    Why should I be in an upside down financial situation because of this companies negligence

    You are in an upside down financial situation because of YOUR
    financial negligence.

    The valet/hotel/insurance company does not consider your loan balance. That it is more than the car is worth is not their concern. Nor should it be.

    Because you are making a claim against the hotel/valet co/ insurance carrier, it is up to you to factually establish a current market value for the destroyed car. That's right, YOU are burdened with proving to them the value you place on the vehicle.

    Meanwhile, they are in the fair market area by offering you what they offered because there is no trade in involved, no car rental involved, no financing for them involved, yet you have the right to present evidence showing how your car was worth more than they value it. So, get to work & prove your case.
  • fordfoolfordfool Western New YorkPosts: 240
    The insurance company only wants to pay a low ACV (Actual Cash Value)

    You are entitled to be "made whole." So in addition to the actual cash value of the totaled car, you should ask for all fees (dealer and state) including sales tax connected with acquiring a replacement vehicle as well as the cost of an interim rental vehicle.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    As for the cost of an interim rental vehicle, once the offer to settle is made, the cost of an interim rental vehicle ceases. Continuing the rental cost only perpetuates the claim enabling the claimant to drag her feet, negotiate, & perhaps sue.
  • taximombutlertaximombutler Posts: 9
    edited April 2010
    This is exactly where the problem lies.... the "made whole" is up for interpretation. The carrier feels that a low ACV is making me whole. It is not. I had a downpayment into the vehicle as well as 2 years of interest payments. Paying off my vehicle, plus the interest and downpayment would be making me "whole".

    This is a different situation in that the valet company is responsible for my vehicle since their driver totaled it. If the vehicle was only damaged, they would pay full value of the replacement "bumper" for example, without deducting for depreciation. However, because it was a total loss, they are now allowed to deduct for depreciation in this case. I disagree, in this case, replacement value, not ACV should be provided for.

    I will keep everyone posted on outcome.... I am ready to set some new precedents!
  • dtownfbdtownfb Posts: 2,918
    As euphonium pointed out, the insurance compan will pay the fair market value of your car at the time of the accident. The fact that you are upside down is your issue since you were upside before the accident. It would be no different then if you ran your car into a telephone pole and totaled it.

    I would use Edmunds and KBB as well as checking your local used car dealers to see what they selling your car for. Compare these values to what the insurance company is offering.

    I would talk to the valet company directly about "making you whole". Possibly negotiating an additional sum that pays off the "upside down" portion of the loan. Not sure it will work but it's worth a try.

    What was the make, model and mileage of your vehicle? Some of the folks may be able to give you an idea of it's value and if the insurance company is lowballing you.

    Good luck.
  • dtownfbdtownfb Posts: 2,918
    As euphonium pointed out, the insurance compan will pay the fair market value of your car at the time of the accident. The fact that you are upside down is your issue since you were upside before the accident. It would be no different then if you ran your car into a telephone pole and totaled it.

    I would use Edmunds and KBB as well as checking your local used car dealers to see what they selling your car for. Compare these values to what the insurance company is offering.

    I would talk to the valet company directly about "making you whole". Possibly negotiating an additional sum that pays off the "upside down" portion of the loan. Not sure it will work but it's worth a try.

    What was the make, model and mileage of your vehicle? Some of the folks may be able to give you an idea of it's value and if the insurance company is lowballing you.

    Good luck.
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    Paying off my vehicle, plus the interest and downpayment would be making me "whole".

    You are wrapping up into a single package items that need to be considered individually and separately.

    1. The ACV of the car = Private Party Sell price, not asking, but sell price.

    2. The interest and down payment on a loan which was used to buy the car does not affect the car's value. You could have used the loan money to buy a boat.

    3. The indirect result of the crash involves the interest and down payment, but as it does not increase the value of that which has been totaled, does not get considered.

    I am ready to set some new precedents! You are ready to learn old rules.
  • Kirstie_HKirstie_H Posts: 11,042
    I understand why you're upset, but as others are pointing out, you're fighting a losing battle. If you had not put down a downpayment, then the only difference would be that you'd now owe MORE on your vehicle. The insurance company will not reimburse you for that.

    The issue with your viewpoint is that if insurance companies operated that way, insurance would be unaffordable for most people.

    Let's say you and I buy the same car at the same price. I put down $5,000 and have an 8% interest rate. You put down $2,000 and have a 5% interest rate. Both cars get totaled 2 years later. Using your logic, I should get back my $5,000 and my interest (which would be more than your interest), and you should get back $2,000 and your interest - for the same car. This is, quite simply, not logical and not how insurance works - never has, never will.

    Your options are to negotiate the ACV of your vehicle, by providing evidence that their estimate is too low. You can also talk to the valet company and see if you can get them to reimburse you, but that doesn't sound likely.

    Either way, you will find it difficult to set new precedents, given that you aren't likely to find a lawyer who will take your proposed case against the insurance company. I'm not trying to be unkind - just stating reality.

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  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    entered a long term lease for a private garage to house her car, would she expect the insurance company to pay for that?

    We still wonder what the year, make, model, mileage, & condition of the car in question? :confuse:
  • First... let me provide an update on this situation. I completely understand the logic by which all the responses have been presented.

    I have now settled with the valet companies insurance carrier, after 5 adjusters later and 6 offers later.. with over a $5,000+ difference in the ending fair market value. It did not come without a lot of research and work, but that part of the issue is settled.

    The second part of the settlement I am looking to receive is under "Bailment Law", within tort law, where I would be claiming negligence by the valet company, also known as the bailee, where they are under strict liability to return the property in the same or better condition than it was given to them. In this case, I am looking to recover the other monetary damages (down payment, two years of interest, loss of use, etc.. ) from both the primary and secondary bailees, which is the hotel chain and the valet company. In this case, the hotel chain is also responsible since they are in partnership and administer the collection of the valet charges through the guests hotel room, so they are the "implied" bailee. Under this law, both the valet company and the hotel are liable. The valet companies insurance carrier is not liable in relation to the "vehicle" loss coverage so far, however, they most likely have general liability or hospitality coverage as well.

    The tough part of this situation is that most attorneys don't want the case because there was no personal injury to me personally, thus not a big enough settlement.

    I am retaining the vehicle information for now, until further into the legal process. It was only 3yr old vehicle and an expensive one!

    Just becuase insurance companies have primarily treated cases like this as standard "property damage" liability cases where fair market value of the property is all that is considered, doesn't mean that this is the way it should be. Let's face it, when someone totals your vehicle, there is a much larger financial loss than just the value of the vehicle. I will keep posting updates.
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