So something is so totally wrong with car insurance these days

[LynneSin]

Thru no fault of my own, my perfectly good car that is paid off, runs fine and has about 100k miles left in it (it was a 2000 Toyota) is now being totaled and the insurance company is offering me squat in replacement.

Oh thanks insurance claim adjuster. I know my car is a piece of crap but I was the owner of that car for 9 years and I know the oil has been changed and the car has been maintained. But thanks to your crappy driver I now either have to find a piece of shit car that I can afford with the squat money you are offering me or go into debt. Did you ever think the reason that not one but THREE of us, who your crappy driver hit, had 3 older cars like that is because we're not the type of people who want to have car payments.

Fortunately for me, the owners of the one car has a son & daughter-in-law who are lawyers. We found out the driver has a medical condition that could make in an unsafe driver plus he was in an accident earlier that day. We (the 3 cars he hit on that street) aren't looking for fancy new cars but something reliable to replace what we all had to give up because of that crappy driver.

[madinmaryland]

1. A couple of questions for you about your car.

I missed the threads about it getting hit. Is it completely totalled? The reason I ask, is that four or five years ago, my brother got his car "totalled" which was a 93 Toyota Corolla (and was actually my Mom's car), and he was able to work a deal that he could get it repaired with the cash settlement from the insurance company.

It can't hurt to try, especially if it can be repaired. Don't know what the exact damage is.

[LynneSin]

2. I might be able to do that - I've been having hissy fits

and I think the threat of the lawyer is starting to bother them a bit. I mean the insurance company was hoping they would get off with paying out about $20k total to close the claim - pretty cheap for someone hitting 4 cars in one day.

If I can get that I may go that route. I mean the main thing is if the engine and transmision are ok then the car should be fine.

We shall see.

[madinmaryland]

3. Well, if the drive train is ok then you should be able to do ok with it.

I ran over a guard rail fifteen years ago on i-84, completely fucking up my front suspension, and after getting it repaired the car was fine. Well, until it got stolen the day I moved to New Jersey. :mad: That still pisses me off. At least I lived a block from the train station, so I didn't need to a car to get there.

[LynneSin]

9. My mechanic finally told me what to do

The risk if I repair the car is this. Because the car is technically 'totalled', the insurance company will insist on a reissued title that says this car was rebuilt AND my insurance company will refuse to ever cover any damage to my car again. They will cover damage I have done to other cars, people and properties but I won't be able to repair my car again using insurance. As far as the insurance company is concerned they 'bought' the car and they don't want to 'buy' it again.

Whereas if I take the money, get another car, they will fix it again.

It's just a suck-suck situation.

[flvegan]

10. That doesn't sound right.

YOUR insurance company isn't "buying" your car. If your ins co writes you a check, they'll then subrogate with the owner of the car that hit you (his insurance). HIS insurance will ultimately "buy" your car, because through subrogation, they will recoup the costs from his ins co. Your ins co will be out the time to negotiate, and little more.

[LynneSin]

11. What you said - but point is, the car is technically totalled

If I decide to still get it fixed then it will get reissued a salvage title.

It's just a total mess is what it is

:cry:

EDIT NOTE: I keep saying 'my' insurance because I have the same insurance company as the guy that hit me. Ironically at first Nationwide (his folks) said they may not cover us because of the driver's medical condition but it was my Nationwide folks that pushed to not only get all 3 of us covered (the guy hit 3 cars) but give us the option of having our cars repaired.

[hippywife]

4. They look at the value of the car

vs. what it would cost to repair. At that age, the value of the car is what they pay out when they total it. There is no replacement cost option on car insurance like there is on homeowners insurance. Paying you enough to replace the vehicle would be giving you more than your actual loss.

It sucks but no company has ever done it any other way that I know of and I worked in the industry many, many years ago for quite some time, nearly 10 years.

Sorry for your loss. :hug:

[LynneSin]

5. I know that is how it works but that is so unfair

I mean the value to that car is the fact that I have no car payments and a decent insurance rate. Now I have to suffer because someone drove like an asshole. I mean jeez, I think I should sue for pain and sufferng because this is just making my life miserable.

It's one thing to have a car valued at $4k that you have owned for 10 years and know the history of the repairs and issues. It's another thing to go out there and find a $4k car that you hope will give you a few good years until it dies but who knows. I realize that the insurance puts no value on that sanity of being the long term owner of an older car but they should.

[MajorChode]

8. I don't understand your statement

"Paying you enough to replace the vehicle would be giving you more than your actual loss."

If the replacement is equal or nearly equal in value to the loss, how is that giving more than the loss? I fully understand that insurance companies want to only pay what THEY consider the 'fair' market value of the car (usually wholesale price or less), but that most certainly doesn't reflect the actual loss if the person has to buy the replacement at retail.

Insurance companies are going to pay at least what a judge or arbiter would order them to pay if it came to that. If they don't, and the case is challenged, they ultimately lose.

[Kali]

6. I'm driving a 15 year old car that was "totaled" last summer -

just has a crease in both passenger side doors but they both still work - fixing them however, would be more than the value of the car. My sister was driving it, but it belonged to my dad. He took the "total" payment and had (made - it does take a little aggression) them give him the salvage title. Then went to mvd and had it reinspected and got a new title. Viola kept the car and got a couple K for his next one. I inherited the car since driving around in the big city with creased doors is apparently only for hillbillies. I don't care - I am one, and $20 to fill it beats the HELL out of $70 or $100 that our other vehicles run!

[MajorChode]

7. Here is how insurance companies fuck you

They know you are highly motivated to make a quick settlement, therefore they will simply wait you out if you challenge their offer. The longer they wait to settle, the more interest they earn on the money they will ultimately pay.

The last time I had a car totaled, I shopped around and found a replacement at a dealership I considered equal in value to the car I lost. I financed the car and told the insurance company what the price was. The insurance company (USAA) initially said they would only pay for what they considered the market value of my wrecked car. From that point on I told them I would only deal with them in writing. I hung up and wrote up a bill for the cost of the replacement car and a rental car I had rented for a few days. I included copies of my maintenance records on the totaled car. I wrote that I expected payment in full 30 days from the date of the notice. I also stated that I expected them to pay for any interest charges on the note for the replacement car if they exceeded 30 days(I'm not sure if I could have collected those costs, but I figured it sounded good). I stated that if I didn't receive payment in 30 days, I would initiate whatever legal options were available to me. I kept a copy and mailed it certified/return receipt. I received a check from them a couple of weeks later for everything I asked.

The best advice I can give is do NOT get caught up in negotiations with an insurance company. Tell them what you think is reasonable and if they deny it in person or over the phone, deal with them only in writing from that point on. If your case ever turns up in court or in mediation/arbitration (which is very doubtful), having everything in writing is extremely helpful. It shows that you are civil and reasonable and that you attempted to work out an agreement. If you can swing it, buy the replacement car on credit ASAP. This gives you additional leverage because now you have a solid written record of what the replacement cost you and it lets the insurance company know you mean business. Just make sure the replacement isn't a significant upgrade from what you had. I don't think it matters much if it's a little better, but if you wrecked a Yugo you bought a Cadillac, I wouldn't expect an insurance company to make up the difference in value. On the other side of the coin, if you wrecked an Accord DX and replaced it with an Accord LX that is more or less equal in condition, I wouldn't consider that too unreasonable. If you can't swing buying the replacement right away, get 2-3 written quotes from nearby used car dealers.