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I am looking to get some advice from people who work or have worked for a car insurance company or knows the ins and outs of one, particularly regarding total loss settlements.
My Mustang was wrecked on Monday when a driver of a big rig ran his red light. OFFICIAL fault determination is still in progress.
The car is currently at a buddies place and the insurance adjuster came out to perform her inspection yesterday. It was declared a total loss and she spent a good amount of time checking the car out to determine the pre-accident condition. Basically she concluded that the car wasn't anything showroom quality but in very good condition.
We had a really relaxed ongoing chat and in one part of the conversation she asked about having them tow the car away. I told her I wanted the car here in case we were really apart with the number so that I could have an independent adjuster take a look at it. She then asked me what kind of figure was I looking for. I told her that I really did not want to say anything until I hear an initial offer and that I tried to find a car just like mine for sale online but couldn't find any. I then told her that basically averaging KBB and NADA came out to about $12k and that might be what I was looking for. In retrospect, even though I was aware, I should have kept my mouth shut.
Anyway, she told me that it's an outside company that determines the actual cash value and that she wouldn't be able to get me a figure until Tuesday when she comes back to work. She then said the computer came back with a preliminary figure and it isn't even an offer yet especially since my mileage isn't confirmed yet because my odometer wasn't working. She said once they factor in the mileage based on my last known documented reading + 1000mi a month (which does seem to fit perfectly with the actual mileage, since I know it) and I email her a couple receipts for a couple aftermarket parts they may consider, it may go up.
The initial figure was a little over $10,700 but it wasn't even an offer yet. One thing I wasn't clear about was she said something like they pay you CA sales tax on top of the offer price??
Anyway, my question is I am ready to dance with the insurance company but I want seek advice as to what is the best way to negotiate for maximized settlement.
Now to my understanding, they do not put too much weight in to KBB and NADA values, but rather what a car like mine would ACTUALLY sell for in the market.
The thing is, my car has always been pretty hard to find. It is an 04 GT anniversary edition black on black premium, leather, with an interior upgrade package.
I have had a tough time finding something the same or very similar on the online market thus far. I did find one for $14,995 online almost 60 miles away with even a few more miles on it. I do see clean cars somewhat similar to mine going for an asking price of $13k around here occasionally.
I heard that what they really want to see is basically reasoning and evidence as to why my car is worth what I want for it.
Once they give me an initial offer which I believe might be around $11,500, I am thinking about starting the dance at $14k but what I REALLY want is $13k or high 12's rock bottom.
I had a friend with an 04 GT who was in a similar situation alittle over 2 years ago and he got paid out $14k for the car. This was during the recession so the prices of cars was lower. This was however, a little over 2 years ago so i'm hoping that cancels each other out. His car did not even have a leather interior.
I am wondering if for the reasons I stated above, would my figure me reasonable and feasible? Basically I am not gonna lie, I want to get as much as I can for my car. I do however truely know that my options, trim, and color combination is very hard to find.
You don't really get to negotiate for "maximized settlement" when your car has been totalled, especially when fault hasn't been determined. The cost to repair the damage to your car obviously exceeds the value of your car in the current market. I don't know your insurance company, but when it happened to me, the adjuster from my company spent a couple of hours determining the amount. It seemed accurate.
Basically they will not use kbb but rather the actual cash value of the car, meaning what are similar cars going for in your area. When they give you an initial offer ask them to email you a copy of the valuation to show exactly how they arrived at the value of the car. Keep in mind you the chances of those aftermarket parts bumping up the value are slim. They will add sales tax on top of the value of your car. If you do not need a rental ask for loss of use. This should be paid from the accident date until typically 3 days after they give u an offer. Loss of use rate differs. Its basically how much you could rent a similar car. If u think they lowball u try to negotiate on the loss of use rate.
The important thing is to make sure they do accept liability. Red light disputes are tricky. You basically are dependent on a witness to back up your story or pray the other driver is honest and admits to running the light. The good thing is a big rig will have good property damage coverage and not the 5k state minimum. Which is a JOKE!
Any other questions let me know, I'm pretty knowledgable on claims.
I am looking to get some advice from people who work or have worked for a car insurance company or knows the ins and outs of one, particularly regarding total loss settlements.
My Mustang was wrecked on Monday when a driver of a big rig ran his red light. OFFICIAL fault determination is still in progress.
The car is currently at a buddies place and the insurance adjuster came out to perform her inspection yesterday. It was declared a total loss and she spent a good amount of time checking the car out to determine the pre-accident condition. Basically she concluded that the car wasn't anything showroom quality but in very good condition.
We had a really relaxed ongoing chat and in one part of the conversation she asked about having them tow the car away. I told her I wanted the car here in case we were really apart with the number so that I could have an independent adjuster take a look at it. She then asked me what kind of figure was I looking for. I told her that I really did not want to say anything until I hear an initial offer and that I tried to find a car just like mine for sale online but couldn't find any. I then told her that basically averaging KBB and NADA came out to about $12k and that might be what I was looking for. In retrospect, even though I was aware, I should have kept my mouth shut.
Anyway, she told me that it's an outside company that determines the actual cash value and that she wouldn't be able to get me a figure until Tuesday when she comes back to work. She then said the computer came back with a preliminary figure and it isn't even an offer yet especially since my mileage isn't confirmed yet because my odometer wasn't working. She said once they factor in the mileage based on my last known documented reading + 1000mi a month (which does seem to fit perfectly with the actual mileage, since I know it) and I email her a couple receipts for a couple aftermarket parts they may consider, it may go up.
The initial figure was a little over $10,700 but it wasn't even an offer yet. One thing I wasn't clear about was she said something like they pay you CA sales tax on top of the offer price??
Anyway, my question is I am ready to dance with the insurance company but I want seek advice as to what is the best way to negotiate for maximized settlement.
Now to my understanding, they do not put too much weight in to KBB and NADA values, but rather what a car like mine would ACTUALLY sell for in the market.
The thing is, my car has always been pretty hard to find. It is an 04 GT anniversary edition black on black premium, leather, with an interior upgrade package.
I have had a tough time finding something the same or very similar on the online market thus far. I did find one for $14,995 online almost 60 miles away with even a few more miles on it. I do see clean cars somewhat similar to mine going for an asking price of $13k around here occasionally.
I heard that what they really want to see is basically reasoning and evidence as to why my car is worth what I want for it.
Once they give me an initial offer which I believe might be around $11,500, I am thinking about starting the dance at $14k but what I REALLY want is $13k or high 12's rock bottom.
I had a friend with an 04 GT who was in a similar situation alittle over 2 years ago and he got paid out $14k for the car. This was during the recession so the prices of cars was lower. This was however, a little over 2 years ago so i'm hoping that cancels each other out. His car did not even have a leather interior.
I am wondering if for the reasons I stated above, would my figure me reasonable and feasible? Basically I am not gonna lie, I want to get as much as I can for my car. I do however truely know that my options, trim, and color combination is very hard to find.
Thanks for the replies,
Brandon
************************************************** ***
You have a big stick if you use it. It sounds like the other driver was at fault if he did run a red light. The insurance company has already demonstrated they are willing to *********. YOU CANNOT be reasonable with insurance adjustors! Just mention you have had a sore back or headaches since the accident. It may sound unethical but you are dealing with scum of the earth (insurance companies).
Thanks for the replies. I do have a witness to back up my story. The witness is the driver of a shuttle that was driving parallel left of me who almost wrecked as well.
Awesome u have a witness so liability should not be an issue. That is why I always stick around to act as a witness because I know how important it is in a claim.
And please do not "fake" injuries. First of all u may get caught. Second of all people think they hit some type of jackpot but then are angrier when they realize what their injury claim will really net them. And adjusters are not scum. If you come at them with a bad attitude then yes they will give u attitude back. For the most part they just want to do their job. They do have their hands tied by department of insurance regulations so no they will not pay people 10,000 on a 1992 Honda civic no matter how well it ran.
Awesome u have a witness so liability should not be an issue. That is why I always stick around to act as a witness because I know how important it is in a claim.
. . . And adjusters are not scum..
I should have said some adjustors are scum not all of them. I still stand by my statement that you CANNOT try to be reasonable with adjusters. If you settle for less than FULL retail on a vehicle when involved in an accident where the other driver was at fault you lose. If in an accident where you are in the wrong that is different.
We have had to do this a couple times over the years. The first estimate insurance companies give is always a few thousand dollars low. We pulled up Vehix.com and Autotrader.com and found the same models/years in similar condition. Print them out and have them on hand to fax if asked. We just were firm and polite, and said we wouldn't accept the lower value. They have to pay what it would cost to REPLACE the car (not sell it which always shows as lower) and they pay tax and title...if you ask. Their job is to keep the cost as low as possible, but you really have to be firm and back up your requested amount with facts.
I helped an ex-gf do this after her Collector's Edition C4 Vette was totaled by an idiot in a Tahoe. If your stang is a limited edition model the insurance adjuster will generally accept comparable value estimates from other states, so start searching Autotrader, Cars.com, hemmings, ebaymotors for offers.
Also, i really hate to say this, but if the accident was bad enough for your car to be declared a total loss, be sure to contact a Personal Injury attorney to preserve your rights & get full compensation for medical bills (current & future). I don't like playing the lawyer card, but insurance companies don't really take claimants seriously until a card-carrying member of the Bar calls.
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