OT: State Farm and totaled car

[MinnieVanMom]

What is the policy and procedure for State farm when a car is totaled? Did they give you a fair value price? How long did it take? What if we don't agree on what the value?

 

[taximomfor4]

I used to work for a large insurance company. Simplified version: A car was "totaled" if the estimate to repair the damage is greater than the kelly blue book on the car. It gets complex if there's a lienholder on the car. The lien gets paid, then you get the rest (up to the kelly blue book value). IF, however, you were upside down on the loan, you'd be responsible for the difference. Unless you'd purchased Gap protection.

They know your car's options, etc, because you tell them all the nitty gritty when you insure the car. They use that to rate your policy, and to find the blue book value.

This is the basics for a DIFFERENT insurance co, when I worked there. There may be differences between companies, and things could be done differently now.

 

[tlbwriter]

I have been there twice - two totaled cars with State Farm. SF is my insurer, but neither claim was my fault (one car was in a wreck where the at-fault driver also had State Farm, and the other was stolen and wrecked).

Both times, when the cars were declared totaled, SF's offer was lower than the cost of a comparable car (same model, same year, same miles, same options, same condition - NOT a new car!). Both times, we said "This is unacceptable" and showed them printed comps (you can get these pretty easily online) to prove it. Both times SF coughed up the full RETAIL value of a comparable car (plus tag and carseat). However, the first time, it took a lot more effort and we had to work our way up the ladder. The second time, we faxed the comps to the adjustor and he said "okay, looks good to me." So be prepared for anything.

 

[a1tinkfans]

You got good info here. You can run a value yourself on Kelly to get an idea of what your veh was worth. Be prepared, any vehicle seems to be "less" than what you thought. Good Luck, hope no one was hurt!

 

[MinnieVanMom]

My estimate is $17 less then what I paid for the car. I think that is total. However I did get a great deal the car, I am seeing that now.

That is exactly the information I needed. I have looked at both NADA and Kelly Blue book.

I had spent a lot of my own money over time making my car perfect. I would have my body man repair little scratches and dings. I cleaned and detailed my car every other weekend. It was as close to perfect as you could get. My body man has records of all the work. It was just a deluxe car. I save for a few years and paid cash!

When I am on Kelly and NADA, do I look at retail, private or trade in? I will be prepared to tell State farm no and prove what my car retails for in the mountain west area. We also just put on studded snow tires last month.

What a headache, but that is the only injury.

 

[tlbwriter]

What you paid for the car isn't relevant unless you have gap insurance. But if the repair estimate is that close to the price you paid, then it's almost certainly going to be totaled. Did you get more than one estimate, or go to a SF-designated shop? If not, you'll need to do that.

You want to ask for the retail price. We checked online car sales like Yahoo cars to get prices for similar cars (which ended up being higher than KBB for our area) and printed out the information sheets to give to the adjustor.

 

[MinnieVanMom]

I think I will also check Car max and few other sites for prices and have it all in order.

I paid cash for my, no gap coverage because there wasn't a gap. I have never had a vehicle that was totaled before. Where we live you just bring the car to the shop, no adjusters come out. I know my body man's work and his prices are in line with the 2 other shops in the area. State farm was fine with my choice for estimate.

Thanks for all the help.

 

[seashoreCM]

It should be retail value.

 

[MinnieVanMom]

Thank you all for keeping me on my toes. I just got off the phone with State farm and got full retail value, no debate. You taught me well and I will have a check in a week or so.

Well done!

 

[tlbwriter]

Good news! Did you have to ask, or is that what they offered right off the bat?

 

[MinnieVanMom]

He asked me for the details about my car. I told him all the spec, the brand new tires and the fact that I had taken two years to get the outside perfect! I also told them the price I had researched because you good people told me to find out.

SF knew I had my homework done and they didn't play games. I just needed it to be over. I got full retail of 13,1810 and $600 for my new tires, then some allotment for tax and title.