How to know when to accept the Insurance co's offer

[mamacatnv]

DS's car was stolen, we have full coverage through AARP/The Hartford. The car was paid for. The adjuster made us an offer today, now the offer is about what we paid and then put into the car in repairs and good tires. We are concerned that we will still be out because the comps are slightly higher and the closest one is 110 miles away over a major mountain range in the middle of the winter. Plus added sales tax & fees and of course we are eating our deductible.

Is it reasonable for us to ask for comps that are closer to us?
Should we accept the first offer or balk just because we can?
Is it reasonable or accepted to ask them if this is their best offer or can they do better?
Do they always leave themselves leeway to negotiate?

We are clueless we have never dealt with this.

Thanks

 

[golfgal]

You probably aren't going to get a better offer. If you got what you paid for the car, that is a pretty good deal. How long have you owned the car? Cars do depreciate in value so if you put the repairs in the car say a year ago, you got a fair offer. The next step is arbitration, that is binding, you COULD go backwards. Car values across the country do not vary that much. It isn't like a house where values can vary widely.

Insurance settlements never cover taxes and your deductible is there for a reason. It sounds like the offer is more than fair.

 

[The Mystery Machine]

If you got what you paid for it, then take the money and run before the other car is recovered. Then you are really hosed.

 

[golfgal]

Also, I think you are thinking of a personal injury case where the opposite insurance company will try to get you to settle and not have to pay furture claims. This doesn't happen in auto theft cases.

 

[BelleWDW]

A used car? Take their offer.
There is NO way you will be compensated for repairs and tires and taxes!!!

 

[dawson5]

I think you can dicker with them, how much I am not sure.

I had a '90 Ford Mustang with 5-star chrome rims on it stolen in 1994. This happened at the mall, they drilled out the lock on the door and broke the ignition. Eventually it was recovered in Cleveland, missing tires, rims, maplight, windshield wiper blades, headlights, spare and misc items that would not be covered by insurance. The cost of the items to repair the car was more than the car was valued at. My husband raised a stink. This car was in perfect condition and paid off. They did allow us not to have the car written off. I would have to ask him how he did this, I can't remember if they had to fix it or if we had to accept their offer and eat the difference--I don't think so though. I do know that they did not believe that we had the chrome rims, when we bought it, he had put the aluminum ones on there and about a month later got a deal from a guy at work on the chrome rims. The difference was about $700 I think. We found a picture of our car with it on there. If the tires are recently bought, I would show them the receipt, it might help.

Another issue that might be in your favor. A friend of ours also had a Mustang that he was trying to sell. A friend borrowed the car to show to a friend who was looking for one. A deal was struck, he was in the process of taking the car back to the owner with the offer and contact information. On the way a girl (unlicensed, uninsured) pulled out in front of him (pulled out into oncoming 50mph traffic, she was cited for the accident), totaling the car. Insurance was going to give him book value on the car. They adjusted this because he had a buyer in place, details were not worked out at the time but it was a formality.

Good luck.

 

[tinatark]

They are using a service to "value" the car - much like home appraisals are done. Do some research on the comps they are using! We had a car totaled recently, and the comps used were in no way true comps to the car stolen - one had a rebuilt title, one was "in the shop for hail repair", and one was in a color no one would purchase (thus why it had been for sale on autotrader.com for over 6 months).

Get a copy of the report they are using - the comps, and the numbers of the current owners, are there.

Definitely ask for more "comparable comps"!

 

[golfgal]

They are using a service to "value" the car - much like home appraisals are done. Do some research on the comps they are using! We had a car totaled recently, and the comps used were in no way true comps to the car stolen - one had a rebuilt title, one was "in the shop for hail repair", and one was in a color no one would purchase (thus why it had been for sale on autotrader.com for over 6 months).

Get a copy of the report they are using - the comps, and the numbers of the current owners, are there.

Definitely ask for more "comparable comps"!

Insurance isn't a money making scheme--they are getting out of the car what they put into the car, which is more than generous. The point of insurance is to put back at the same financial position you were at before (minus your deductible). That is what they are doing.

 

[dawson5]

http://archives.starbulletin.com/97/01/13/business/story1.html

This article goes along with what tinatark is saying. It sounds like you don't have to take the first offer. Do check your comparables. I think this is more than likely what my husband did, our car was immaculate when it was stolen and upgraded quite a bit and the low-mileage made this a hard to replace vehicle. I think it had about 7,500 miles on it at the time with about $2000+ add ons. With ours it was only cosmetic, definitely didn't warrant the "totaling" of the vehicle.

 

[mamacatnv]

Thanks for all the input - good ol folks on the Dis!

We have had the car exactly 1 year almost to the day. We bought it used for $3500 cash, it was a Honda Civic 4 door with only 140K miles. We had to repair the sensor for the airbags $600, then we had to put new tires on it, $500 for all season mud/snow tires. We spent 3 months looking for that car. It also had an after market stereo and sound system $600. I have receipts for all of this.

The offer from the insurance company is $5000 less our $500 deductible. I agree that the offer is reasonable and we are not really out much of anything at this point. Finding the new vehicle is the trickier part and when we do then we start over with tires, stereo etc. and since last year the little cars have continued to increase in value due to fuel costs. The closest we have found is $5K, it is 110 miles away and does not have mud/snow tires and has the stock radio.

I'm not trying to soak the insurance company, I am just unclear of what the norm is and how to proceed and really didn't know who to ask. With the AARP we don't have an agent so we have no one to consult with.
I think I will call a couple of local dealerships just so I know we did our part.

This whole process is so frustrating, I hate thieves. Accidents happen I understand that, but outright theft just ticks me off and I realize that is not the insurance companies fault!

Thanks for all your advice!

 

[allison443]

To me it sounds like they are being reasonable. Keep in mind that you aren't insured for replacement value, but current depreciated value of the car.

I hope you can get a comparable vehicle for your son-I know it's frustrating being without a car! Good luck~

 

[golfgal]

To me it sounds like they are being reasonable. Keep in mind that you aren't insured for replacement value, but current depreciated value of the car.

I hope you can get a comparable vehicle for your son-I know it's frustrating being without a car! Good luck~

Exactly-for what you have in it, minus the aftermarket radio you are making up for your deductible even. I think you got a more than fair offer. For $5000 you should easily be able to find a similar car. Quite frankly the tires and the repairs are considered regular maintenance and really don't add "value" to the car anyway. Also consider that the repairs you have into the car have a year less value on them as well. Even if you figure a $50/month car payment for the last year as a depreciation "cost" that you are STILL coming out ahead of the game.