My Own Little Budget-Buster (Final Update - 02/16)

[JB2K]

Just when you think it couldn't possibly happen to you -- it does...

Late last week, my wife was in an accident involving our SUV -- while she emerged from the accident unharmed, the vehicle, however, was another story.

It was deemed a total loss by the repair shop. My insuance carrier (USAA) concurred.

Now, the fun part - the vehicle is a 2003 model. I purchased it new and have kept it up, over the past (nearly) 8 years of ownership. I am being told by the repair shop that all insurance companies (USAA included) will do their best to "low-ball" the value of my vehicle (I own the title free and clear).

After reading some consumer reviews on the 'net over the weekend, I am now getting the impression that USAA is "great for rates -- not so great come claims time". I guess I have little choice but to wait and see (and fight, if necessary). Regardless of what they pay me, it will not be enough to replace a 1-owner vehicle -- and buying a new car is simply not in the budget for at least the next couple of years. We do have a second car (if you want to call it that) - my wife's POS 10-plus years old Chevy Cavalier that can't even be relied upon to get you across town.

My wife will not be at fault, as the other driver already admitted fault to the State Police (the investigating authority), To add insult to injury, the party who hit my vehicle is a member of my local law enforcement (he was operating his personal vehicle, as he was on his way home from work).

As Disney goes, that was our long-haul vehicle for trips and family transport, in general. As that is now kaput, I see little need of discussing travel that won't be happening for the next few years with the rest of you.

I am not looking for hugs, pixie dust, etc. I just wanted to share how things can (and do!) turn-around and bite a person in the butt. And for those of you who have said that I was "mean" in the past -- well, I guess you can finally get out the popcorn and have a laugh on me!

 

[JamesMom]

I got sandwhiched between two cars in a Mazda Protege in 2006. We had ONE payment left on the 5 year loan! We have USAA and they paid us a reasonable amount for the total IIRC. First, check out what is a good amount for your car - check Kelly Blue Book. USAA should give you at least the kbb value.

 

[Marionnette]

Just when you think it couldn't possibly happen to you -- it does...

Late last week, my wife was in an accident involving our SUV -- while she emerged from the accident unharmed, the vehicle, however, was another story.

It was deemed a total loss by the repair shop. My insuance carrier (USAA) concurred.

Now, the fun part - the vehicle is a 2003 model. I purchased it new and have kept it up, over the past (nearly) 8 years of ownership. I am being told by the repair shop that all insurance companies (USAA included) will do their best to "low-ball" the value of my vehicle (I own the title free and clear).

After reading some consumer reviews on the 'net over the weekend, I am now getting the impression that USAA is "great for rates -- not so great come claims time". I guess I have little choice but to wait and see (and fight, if necessary). Regardless of what they pay me, it will not be enough to replace a 1-owner vehicle -- and buying a new car is simply not in the budget for at least the next couple of years. We do have a second car (if you want to call it that) - my wife's POS 10-plus years old Chevy Cavalier that can't even be relied upon to get you across town.

My wife will not be at fault, as the other driver already admitted fault to the State Police (the investigating authority), To add insult to injury, the party who hit my vehicle is a member of my local law enforcement (he was operating his personal vehicle, as he was on his way home from work).

As Disney goes, that was our long-haul vehicle for trips and family transport, in general. As that is now kaput, I see little need of discussing travel that won't be happening for the next few years with the rest of you.

I am not looking for hugs, pixie dust, etc. I just wanted to share how things can (and do!) turn-around and bite a person in the butt. And for those of you who have said that I was "mean" in the past -- well, I guess you can finally get out the popcorn and have a laugh on me!

I'm glad that your wife is okay. Only a sick person would take any delight in another's misfortune. I hope things turn out okay for you.

 

[MyDizneyBoyz]

Expect the worst from the insurance carrier and start building your case to justify your car's value. Maintenance records, any photos you have, etc.

The situation stinks but so long as the people involved are unharmed, that's what matters in the end.

 

[MickeyMomOfThree]

I can relate, our van was a total loss in an accident my DH had (withour 2 and 4 year olds in the car at the time!) We had a very small commuter car only (that was brand new though, ugg.) We had to buy a family car, get got a van but it was tough having 2 car payments for so long. They are both paid off now and hoping to be able to remain car payment free for a while to boost up the savings.

BUT, as bad as it seems, the most important thing is you DW is OK, and while it all seems bad now, things can be replaced. Hopefully you so well with the insurance.

 

[msmayor]

The sad truth is that a car's true value is never going to be enough to replace it...and even demonstrating how much money you 'put in' to the vehicle won't change that. You shouldn't expect any more than blue book value, and perhaps even a small amount less.

I will say that USAA has consistently demonstrated fairness in any claim I've had. Years ago my car was totaled with only two payments left. I got a fair amount based on the car's age and condition. Even though I had JUST put four brand new tires on the car, it didn't matter that the $600 I'd spent was now gone. Tires are a necessity and regular maintenance item and the age of the tires didn't figure in the overall value of the car.

Best of luck to you in finding another vehicle.

 

[bettymae1121]

In addition to Kelly Blue Book and Edmunds prices, also get quotes from dealers in your area and see what the same year/make/model with similar mileage is going for. I know my car goes for at least $1k higher than the Blue Book value in my area (values at $2k but I see it listed for $3k or higher).

Glad your wife is okay, that's the most important thing!

 

[Disneychix]

If the other driver is at fault wouldn't it be his insurance company that you would be getting the check from?

I'm glad the result is your wife is fine and the car is the only thing damaged!

 

[dis-happy]

We have USAA. My dd was rear-ended at college 2 years ago, driving our older model but extremely well cared for 1 owner car (a 1998 Accord). We had it towed to a highly recommended repair shop that does a lot of the insurance repair in the area. The woman at the desk had a lot of experience with claims (she also used to work on the insurance end) and said she could tell the car was well cared for and she would do what she could. Anyway, she did work it out and the car was repaired, but it could just as easily (probably would otherwise) have been totalled. Can you fight for the repair? Or at least make sure you find out what the fair value is and push for the fact that the car was in excellent condition. GL

 

[SSRFred]

In addition to Kelly Blue Book and Edmunds prices, also get quotes from dealers in your area and see what the same year/make/model with similar mileage is going for. I know my car goes for at least $1k higher than the Blue Book value in my area (values at $2k but I see it listed for $3k or higher).

Glad your wife is okay, that's the most important thing!

ITA. This is exactly what I did several months ago when my car was totaled. I was able to get Allstate to agree to 20% more than they were offering. I found a car for sale that had the same exact options and was manufactured within a month of when mine was.

It was still below the highest blue book value but at least it was thousands more than I was originally offered.

 

[POOHDRMR]

My dh had an accident last week and his car was totalled.He was fine thank goodness.He was in traffic and when traffic stopped in front of him the guy behind didn't stop.He was hit from behind and then pushed into(and under) the car infront of him.We had 3000 left on the loan for that car and we really were not ready to have to buy another car.We are getting 6,000 after they paid off the remander of the loan but he travels 82 miles daily to and from work and needs something with low miles.Now we have to take out another loan and we are looking at another 2,000 probably out of our bank account to put down to keep the payments low.It wasn't anything we needed right now and my dh loved his car(2006 hynudai sonata with moonroof and leather seats)Then to top it off the person that hit him tried to say he caused the accident and hit the car infront of him firstWe had to get the police report to dispute.Glad everyone was okay but I understand how much it sucks!

 

[NVDisMom]

You may not want the hugs, but I bet your wife does! I think most of us have been in your shoes at one time or another. When DH was hit, the at fault party's insurance paid, including our $1000 deductible directly to us. We had a second car and didn't want to fuss with a rental, so they even reimbursed us for our personal car use instead. We couldn't have been happier, until we picked up the car. The accident happened a couple of hours from home and repairs were done there. Unfortunately, the car has never been the same. I was so scared it might get totaled, but looking back it may have been better. I would definitely price out comparable cars in the area and be prepared to counter the ins co's offer. All things are negotiable! If you are the squeaky wheel you will probably get your way, or close to it.

 

[thebeesknees]

We had something similar happen a couple of years ago. I was stopped to make a turn, got hit from behind by a delivery truck that was going 45 mph and never slowed down. I had all 3 kids in the back seat (including my 7-week-old). Fortunately, we were all OK. The other driver's insurance paid us. They initially offered us a very lowball amount, telling us that a 9-year-old car was not worth that much. DH disagreed, as he has always taken immaculate care of it. He argued that we should not be out the $ for a replacement vehicle, as we were not at fault. We wouldn't have been looking for another car if the accident hadn't occurred! He found 3 other vehicles for sale that matched our make, model and year and submitted them as comps to the insurance company. They finally agreed to give us the amount that the middle-priced car was selling for. We were able to negotiate a good deal on our replacement vehicle and came out $400 ahead in the end, but it was a process full of headaches for a good 3 months or so. Hope you are able to get it all straightened out in a timely manner, and I'm glad your wife was OK.

 

[akcire]

In college (in May), my legally parked car was backed over by a school bus. No I am not even kidding. The best thing I did, and this was before digital cameras, was take pictures of the bus, the car, heck I even had a photo of the police officer that responded (but that was because he was cute).

Immediately the bus companies insurance offered me a settlement, since no one was in the car it was a simple property dispute, no injuries. The settlement offer was ridiculously low. Keep in mind the bus driver received a multitude of tickets, as he had a bus full of kids. I called the bus company, spoke to the manager who agreed the amount was low and provided me his insurance agents name, to try and get the settlement resolved.

Now since I was too young to rent a car, I purchased a $200 junker from a friend to drive for the summer (I needed transportation for work, and cabs were not an option). The insurance company did agree to reimburse me $25 a day, since they could not secure me a rental car.

Fast forward to August. Now I am just mad. So I called the local newspaper. They ran my story complete with my photos, and all my notes from 4 months worth of calls to the insurance company. Needless to say the Vice-President of the insurance company called me directly. She agreed that the initial settlement offer was too low to replace my car, my words to her were if she could replace my car for the amount offered--to go ahead and do it. This shocked her. I told her I would take the same model car in settlement, with similar miles and similar features; but I wanted to see the receipt. She increased the amount by $2500 (which was more than I was asking). Ironically the "rental car" money they paid me, which increased every day, while they blew me off, was almost as much as my settlement for the car. I received a fed ex the next day with a check. Worse for the insurance and the bus company was all the bad press they received.

Had it not been resolved with that phone call, it would have ended up being a lawsuit for the insurance company. The newspaper article brought me offers from 4 or 5 local attorneys who were willing to represent me for free.

OP-my advise is to document everything and stick to your idea of price (but be reasonable). You can even tell the adjuster to find your "new" car for you, it doesn't mean you have to take it; but if they have to look they will get a better idea of price. Your settlement will likely be coming from the insurance company at fault. Also since this was a moving accident they will want you to settle a release from injuries; until you get a fair value, don't sign.

 

[JB2K]

If the other driver is at fault wouldn't it be his insurance company that you would be getting the check from?

OP, here - I failed to mention that the person at fault is insured by Erie Insurance (I had never hweard of them until this). It is to my understanding that USAA may tentatively pay me until they get a paid by Erie.

 

[tonilea]

My wife will not be at fault, as the other driver already admitted fault to the State Police (the investigating authority), To add insult to injury, the party who hit my vehicle is a member of my local law enforcement (he was operating his personal vehicle, as he was on his way home from work).

Out of curiosity, why does the fact that the other driver was a LEO add insult to injury? If he had tied to "good ole boy" the trooper or tried to deny fault, I would agree. But, he admitted fault, he is insured, and didn't try to do anything wrong. Clearly he made a mistake, but LEOs are not perfect. They are human. They make mistakes.

In fact, considering the sheer number of miles they put on a vehicle, it is an expected part of law enforcement. It isn't if they will be involved in a motor vehicle accident, but when.

 

[msmayor]

JB2K, that is pretty much exactly what USAA will do. When I had my accident, the other driver was ticketed and at fault. I can't remember who his insurance carrier was, but the claim remained open because he wanted to try and fight the ticket in traffic court (he was clearly in the wrong though...left turn across my lane, he literally turned right into me).

USAA cut me a check for the value of the now-totaled vehicle less my $500 deductible, and also paid for 30 days of a rental car (this is an option we have on our policy). Once the case was settled USAA went after the other insurance company for reimbursement and the sent me back my $500 deductible a few weeks later.

 

[JB2K]

Out of curiosity, why does the fact that the other driver was a LEO add insult to injury?

It's something called "holding certain people to higher standards" (as a retired military person, I tend to do that with servicemembers and cops) -- that's what seperates them from other professions. If they don't want to be held to that standard, I'm sure they can find a career, elsewhere.

If he had tied to "good ole boy" the trooper or tried to deny fault, I would agree. But, he admitted fault, he is insured, and didn't try to do anything wrong. Clearly he made a mistake, but LEOs are not perfect. They are human. They make mistakes.

Seems to me you may have an LEO in your family/household -- yes, they, along with the rest of us make mistakes. But you'll have to forgive me for not being so understanding, as we had a similar problem involving a State Trooper in our local area, recently.

As I cannot seem to make a hyperlink at the moment, go to http://www.stltoday.com/news/local/...cle_411f2abe-ff3b-56fe-9b4e-f016d4b12e6b.html and try telling Kim Schlau and Brian Uhl "these guys make mistakes".

In fact, considering the sheer number of miles they put on a vehicle, it is an expected part of law enforcement. It isn't if they will be involved in a motor vehicle accident, but when.

You must've missed the part that this was his personal vehicle, and he was on his way home from work. The weather in this area hasn't been great over the past few weeks, meaning someone in his position needs to excercise more caution than usual. Despite what some may think, cops aren't invincible...they, too, need to slow down...

The reason I am passionate about this is that had my 4 year-old son been in the back seat of the car (my wife was on her way from work to his daycare to pick him up), the story I am sharing with you, today could've been far, far uglier.

 

[*Seanaci*]

Wow. Glad your DW is ok.

Sucks that it was an off duty officer. However, I would be relieved that he admitted fault and didn't try to deny it or cover it up. KWIM? That to me would be a bigger insult to injury.

That being said. Good luck.

 

[collegejunkie]

have you considered leasing something for now? the car i share with dbf was totaled in july of last year and it was only 2 years old. the insurance company deemed it a total loss, and the money i received for it was laughable. we decided to lease a toyota corolla -no money down, $80 a month, 12,000 miles per year for 3 years. it's very doable. i realize it's not a SUV, but if you can find a good deal, it may be worth it to lease it for a longer period of time and then maybe buy it off at the end.