Life Sucks!! Car Might Be Totaled.

[User678]

12/24/15 The wife's driving our 2013 VW CC on the expressway, another driver hit her, the driver and their insurance excepts responsibility.

12/28, the adjuster contact me saying the car looks totaled but he'll take another look 12/29 and call me.

Sucks because I just don't want to fight!!!

Question 1:
Is "replacement cost" defined as the average sales price of replacing the same car considering color, interior options, tech features? The reason I ask is there is a small sample of vehicles for sale with the options I had in our Black VW. Though the prices range by $4,000, the black cars with factory two-tone interiors average sales are considerably higher.
Q2:
Here in Georgia we pay a onetime register fee. In 2013 I paid $2,000, today to register the same vehicle the fee is $1,300 should this amount be incorporated into the settlement?
Q3:
If I buy the car back as salvage title and repair it can I keep the financing in place and unchanged?
Q4:
Any advice on auto appraisal companies I could use in Atlanta would be great.

I've been a long time lark-er but first time posting a message. This site is awesome and thanks in advance for the advice.

 

[djs]

Question 1: Replacement cost is what it would take to replace the car with a similar car. On the settlement offer, they will take a variety of things into account, from the condition of the car prior to the accident, mileage, options, how good are the tires, wear and tear on the seats, etc. Very similar to the process you would use if you are buying a car. In general though, black cars tend to have a lower resale value then almost any other color. Not sure why that is and it may not apply to all cars.

Question 2: Yes, they will build this into the total offer. Make sure it is there. I'm not familiar with this in GA, they may prorate it, though probably not.

Question 3: If you keep the car with a salvage title, the bank will want to be paid in full. The collateral for the loan is greatly diminished in value. Depending on the terms and your credit, you might be able to move it to a personal loan.

Question 4: The insurance company will take care of this. Your appraisal will only serve to let you know if the insurance company offer is reasonable. They will not take your appraisal as the value though. You also will not be reimbursed expenses for the appraisal.

Dan

 

[User678]

Thanks for the responses Dan.
Belated Merry Christmas
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Current Happy Kwanzaa
or
Simply Seasons Greetings

Any other perspectives would are welcome.

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So the auto adjuster is going to total loss the car and is still working on a value. because he's 75% of his "total loss matrix" and if there's any unforeseen issues then it'll take him over his matrix.
Q5:
If the discoveries are 75% if his matrix shouldn't he just follow procedure and not assume it'll go over his threshold?

He told me that they don't pay out by replacement cost, the pay on the value of the car. He elaborated buy saying that don't take into consideration dealer fees or sales mark up. I assume this all so include the cost the register a vehicle.
Q6:
Is this standard or should I assume they're positioning their selves for a low initial offer.

Just don't understand why I should be out $2,000 -3,000 because someone hit me.

 

[Josh]

He told me that they don't pay out by replacement cost, the pay on the value of the car. He elaborated buy saying that don't take into consideration dealer fees or sales mark up.

Something isn't adding up here. Yes it can vary by state, but by saying "dealer fees or sales markup", that's another story altogether. If you're talking about upsells like an extended warranty, paint finish, etc, sure, but the cost of the car is the cost of the car and their obligation (in every state I'm aware of) is to replace indemnify you, which means getting you back to where you were before.


With respect to the total threshold, once they decide to go forward on the repairs then that's done; doesn't matter if the engine block is cracked and they have to dump infinite money to repair the vehicle, then they repair the vehicle. Judging from the totality of the context of the situation as you've explained it them repairing the vehicle might be the closest thing to what you'd like to happen.

 

[INSUREGEEK]

Q5:
If the discoveries are 75% if his matrix shouldn't he just follow procedure and not assume it'll go over his threshold?

Threshold - It's a process where the carrier looks at the value of the car first, then compares it to the cost to repair.

From the body shop side, I can tell you that some carriers will pretty much always total a car at 75%. Some will authorize a "teardown" of the car specifically to make sure they have everything needed to properly repair the car. Of course, all of that takes time and costs the company money. Some will fight to save a car. Others won't bat an eye at paying it out as quickly as possible.

Good Luck!

ETA: It also depends on the salvage value of the car = what the insurance company can get for it from a salvage yard. The more they can get back for it...after paying you.....the better THEY come out. I don't see that happening often, but it does happen. Please keep us posted.

 

[djs]

The adjuster is correct, they don't pay 'replacement' cost, they pay what is called ACV or actual cash value. In some ways, its semantics, but in reality, it is an important distinction.

Replacement cost would mean they would pay what it takes to replace the car, usually new. Simply put, they are not going to buy you a new car to replace a used car.

ACV (cash value) is what it costs to replace the car with a similar car, adjusting for some various factors, such as mileage, wear and tear, etc. In an ideal world, you should be able to take the check they issue to you and find a car to buy for exactly that amount, including the fees to obtain it. Doesn't mean every car, since some will be higher, some lower, but one at the price. That never actually happens though.

The adjuster is also correct that they really don't care about dealer markup and stuff like that. That is just dealers trying to sell for above the market value, claiming they are adjusting for market value. Its bogus $$$, the insurance companies don't go for it.

The only reason you should be out $2-3K in this is if you bought things like extended warranties (cancel and get the prorated money back), optional services that don't translate to value or if you overpaid for the car in the first place. This would include if you rolled negative equity into the car.

The other thing that happens is without the accident, you were underwater in the car. This isn't the accident causing the loss, its just the way cars tend to be financed and a problem of timing. Gap insurance tends to cover this, up to a point.

Let the adjuster present an offer, then it will make much more sense.

Dan

 

[OldGeorge1950]

Let the adjuster present an offer, then it will make much more sense.

Dan

What happens if the adjuster's offer is way too low or unfair?

Is the insurer's offer the final offer or can one appeal it or seek legal recourse?

 

[djs]

What happens if the adjuster's offer is way too low or unfair?

Is the insurer's offer the final offer or can one appeal it or seek legal recourse?

The offer usually comes with a description of how to appeal it if needed. They are usually pretty 'fair' offers though. In this case, its a 2013 VW, so its probably not hard to establish a reasonable value.

Where differences usually come in is in the determination of the condition of the car prior to the accident. This is usually pretty well itemized on the offer though, showing how they came up with the number.

He should have the offer in a (business) day or 2. Not worth worrying much about it till it is in hand. I've seen high offers, low offers but most are about right.

Patience.

Dan