Insurance Super Low Balling Me for Totaled Car.

[scand1]

So I was rear ended a couple months ago, at first they were going to repair it, the repair estimate came out to a little over 8,000. but then they found out there would be a 3 month wait for a specific part from germany so they decided to total it.

I should also say that my insurance is progressive, the other party's insurance is state farm. i only have liability (which was a mistake on my/my insurance agents part, i asked him to set me up with the appropriate coverage for my car, but i guess he didnt look at the value as you cant really find my car for any less than about 15)

my car is a pretty rare enthusiast/collectors car, and they have been shooting up in value over the last couple years. for my mileage and condition you see them going for 18-25. their first offer was for 6,000, i obviously said no, this was a super obvious low ball considering that they obviously valued the car at a bit over 8,000 at least if they were going to pay that for repairs. next offer was 12, and i said no again. and basically im stuck now, they wont go any higher. i talked to the insurance commissioner, they said i can go to small claims court, which if it means getting paid the right amount i will do. i just dont know how well i'll do in court.

i also got a private appraisal that valued my car at 20. they said its not in their policy to look at appraisals or even consider them so they dont have to look at it. state farm used NADA to determine the value of the car, but its absolutely clear that its an inaccurate source seeing as my specific car was valued at 20 and you cant even find a complete rust bucket with a half missing interior for 12k.

so im just seeking some advice, should i go to small claims court? what argument do i have? that im being treated unfairly or that they arent paying the true value of the car/using inaccurate sources? i dont know what insurance companies are legally required to do when handling another party's case.

or should i try to squeeze any extra money i can out of state farm?

 

[VolAgent]

They are legally obligated to make you whole. They have to return you to your state before the accident. They feel they are doing that with their offer of $12,000. You feel that $20,000 is more appropriate. It sounds like it is time for a third party to decide if they won't budge.

You basically have three choices: 1. Accept their offer. 2. Ask them what they would accept to establish fair value. 3. Take them to court.

Also, unless the judge found State Farm to have been unfair in handling their claims, the most you can expect to recover is the fair value of the car plus any attorney fees and court fees.

 

[djs]

I'm assuming you had the wrong type of policy on your car. In fact, I know you did from your description.

Here's the problem, you only had liability coverage on a car you are now saying is worth $20K. This doesn't make much sense to me. You can blame progressive, but, you bought the policy and were probably aware the rate was significantly lower than what other agents presented.

At the time you bought the policy, did you mention the car was worth significantly more than 'bluebook'? If not, nobody would have thought to offer what is called a stated value policy, which is what you need for the type of coverage you are looking for.

Also, at $20K, they will do the $8K in repairs, so it won't be a total anyway. I'm not sure what part you need, but odds are, they can get one from a salvage yard much faster than 3 months.

What kind of car is it? Just curious.....

Dan

 

[b61mack]

Take the 12, plus the salvage, they will give it to you for about 200 dollars. and get it fixed yourself.

 

[Josh]

Just adding to the already good advice above, what the car is appraised at means nothing UNLESS you have a stated value policy. ACV is what most cars are and that's what they pay out. If you had a 92 Chevy Corvette it might only book out at around $5k plus tax and tags, but it could be worth three times that if you've had work done on it. That said, if you have a standard policy it'll only pay based on an approximation of the book value. If you're going to own cars like this, make sure you go with a "Stated Value" where the carrier and you agree upfront what the value of it is in the event of there being a claim.

Odds are you can't take them to small claims court. The amount in dispute is over that a small claims court would have jurisdiction over in every area I'm aware of, you'd have to take them to big boy court. They'll win. Contrary to public opinion, insurance companies can't just make up numbers and screw clients. If you're getting offered 12k for it they probably are well within their rights to pay you the 12k and you probably will never win a fight with them in court. It sucks, but it's the truth.

If I were in your situation I'd take the $12k, learn the lesson, and make sure I got a stated value policy on the next interesting car I bought.

I'm also curious about what this car is.

 

[b61mack]

You have to negotiate with the insurance company yourself. Be firm but don't yell and carry on. You have to prove the value, Go on e bay, craigslist, etc. you have to find cars like yours that SOLD. To prove its value, They will send you like comps, Thats how you negotiate, with an insurance company. They sent me comps that sold 800 miles away!!! I told them fine go buy me one, they won't.

 

[djs]

Correct, you can use real comps to argue the value. They will listen to that. It pretty much has to be sales though, not just someones wish list price or a friends opinion.

They will also make adjustments, just like you would if you were buying the car.

At the same time, if the repairs are about 8K, and you go above 12, the car won't be a total, they will do the repairs. At that point, it depends what you want.

Dan

 

[xrac]

Take the 12, plus the salvage, they will give it to you for about 200 dollars. and get it fixed yourself.

That is one of the ways to solve this.

 

[scand1]

here's a little update, I talked to an attorney, he said he wont deal with this kind of case, but gave me some basic advice. he said that in my state if i were to take them to court it wouldnt be state farm, i would have to sue the person who hit me, and be able to prove that state farm would not fully reimburse me for my damages.

i feel like I do have a pretty strong case regarding the value of the car, I spend a couple hours yesterday looking everywhere i could on the internet, and i did not find ONE car selling for 12,000, the closest i found was 13,000 and the paints badly faded, chipping off all over the place, interior is ripped apart, rusty, etc..

any similar condition car i found was going for anywhere from 18-30k.

 

[Josh]

What type of car is it?