Car totaled in accident. Insurance company not offering enough money?
Posted on Mar 14, 2008 under Insurance Information |I was hit by a reckless driver. The accident was not my fault. The other driver and I have the same insurance company (USAA). Now the problem is we are military and we are PCS-ing next month. We had basically had our car sold to a guy on my husbands boat we were just waiting for them to return from deployment to do all the paperwork. And we had it worked out to were we wouldn't turn the car over until the day before we left island. Now I obviously can't sell it and need a rental car. The insurance company isn't offering what I feel like is enough to replace my car. I used Kelly Blue Book to determine the actual cash value of my car it said 13,900. I owe 11,700. They offered 11,300 claiming that is what my car is worth. What do I do??? All I want is to be made 'whole'… my car to be paid off and a rental until I leave.
March 14th, 2008 at 3:46 am
Kelly Blue Book is not a good guide to the value of most cars. It is a bargaining tool for dealers. They publish high prices so that dealers can advertise "BELOW KELLY BLUE BOOK!" When was the last time you saw anyone mentioning blue book without being below it?
KBB does not accurately account for ANY variation in trim, location, condition, or mileage. They try to apply some bullshit formula that just does not reflect reality.
Also, what you owe has nothing to do with the actual current value of the car. Most people who finance late-model used or new cars are upside down (owing more than the car is worth) on them at some point.
If the insurance company has determined the other driver is at fault, you should be paid enough to replace the car. However, since you're both with the same carrier, even if it is USAA, expect them to drag their feet about it.
If you want to contest their valuation of your car, look at not just KBB, but also Edmunds.com, and Nadaguides.com. And look for similar cars advertised for sale in your region. The more similar the better. Also look at completed listings on Ebay. And maybe check Pricehub.com as well. The more evidence you have that your car is undervalued, the better.
Be willing to get a lawyer if they won't concede.
But remember…KBB alone means nothing. You need real evidence, not some bullshit extrapolation (from source data which could not POSSIBLY be sufficient).
March 14th, 2008 at 3:46 am
I agree, KBB is not a great place to find ACV of your car. In reality it sounds like they are right on with the value. As far as them paying you a lower amount than what you owe, thats what gap insurance is for. 99.9% of people who finance a car owe more than what its worth. a car depreciates VERY fast. be glad you only have a $400 difference and next time make sure you get gap when you buy a car. as for the rental, they should pay you for a rental until the car is fixed or if they have totalled it until the claim is settled. I hate to tell you but USAA is a great compnay when working for you but when it comes to being the party who is trying to settle a claim with them they are very hard!!!
March 14th, 2008 at 3:46 am
#1 KBB is not the right place to get a vehicle value. Nowhere near accurate.
#2 What you "feel like is enough" doesn't matter. Feelings don't play into determining the Actual Cash Value (ACV) of a vehicle.
When USAA made the offer to you they probably based it on a CCC or similar report. If they didn't give it to you, ask for a copy, you have the right to see whatever documentation they used to determine the value. These reports are based on actual car sales, not ASKING prices or book values.
By reviewing the report you should be able to see other cars like yours and what price and where they were sold.
Just telling them you "feel" like they owe you more won't help your case, neither will KBB prices. The ONLY thing that might get the offer raised is for you to find comparable vehicles and that have a higher selling price, not asking price. It is a lot of work, but it may be worthwhile for you to do some research on your own.
BTW, they only owe for the rental car until they make you a settlement offer, so there is no way you will get them to pay for a rental car until you leave.
Cases like yours are strictly a matter of documentation. If you don't like their offer then it is up to you to find documentation to show that their offer is not correct.
Good Luck.
March 14th, 2008 at 3:46 am
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March 14th, 2008 at 3:46 am
What have you done to the car lately that may make it worth the extra 400.00? Also, check your local ads to show what the same car is going for in the area. Normally, the insurance companies will contact local dealerships and ask them what they would see the car for, and how much money they have to put into the average (year make model) to bring it up to sellable condition. Do you have anything documenting that your husband's shipmate had the intention of purchasing the vehicle for 11,700 or higher. These are all things that you can use in negotiating BEFORE you sign the papers. Otherwise, you will have to go through arbitration, or a lawyer, which would probably eat up that extra 400.00
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