Maximizing Insurance Return - Totaled Vehicle

[Guest Kingsley]

I have just placed a thread on the Buy/Sell Forum mentioning the availability of parts from an '89 coupe that has just been rear ended and totaled by the insurer.

I gather the insurer has indicated a figure of $5,000 which they translate into a $1500 cash offer. Owner would appreciate some advice on best way to counter this.

Perhaps the first approach is to play hardball against that $1500 figure but any other ideas for bettering the settlement would certainly be appreciated.

This subject is perhaps of interest to quite a number of us.

Kingsley

'89 and '90 Coupe

Member AACA, BCA and Reatta Division

www.reattaspecialtyparts.com

[DAVES89]

I would take the $5000.00 cash and have the insurer tell me what yard it will go to and then buy what you want from the yard. IMHO it is too hard to get $1500.00 in parts [especially when you figure your labor] from a car, even when you factor the remaining scrap value of $400.00 for the remaing body and frame.

[Guest Kingsley]

Dave, thanks.

Not unusual but believe I did not make it as clear as I should. The insurance company is apparently using a $5000 figure, obtained probably from "the book" and equating that into a $1500 cash offer.

A $5000 figure from "the book" sounds good for a starter but it goes downhill from there in arriving at a cash settlement. Owner wants some, or more, of that difference.

Hardball may the difference.

Kingsley

'89, '90 Coupe Member AACA, BCA, Reatta Division

www.reattaspecialtyparts.com

[waltmail]

Is this his/her insurance company or the other person's company?

[Guest Kingsley]

Walt - thanks. This offer is being made by the insurance carrier of the car that was responsible for causing the damage.

Worth going to your own carrier for a possible better settlment and letting them subrogate against the other insurance company? My thought, only.

Neither the owner nor I have prior experience in matters of this nature.

Kingsley

www.reattaspecialtyparts.com

[DAVES89]

Two weeks before the Packers playing in the Super Bowl I was invoved in a front end collision where a lady cut me off. The damage was for $2900.00. Her insurance company willing wrote a check for damages. At the time the Reatta [the Black] had about 200k on the odometer. There was no offer from the company to total.

Your clients car is worth more then $1500. I would settle with my company and have them go after them.

Or do a good job of finding fair market value of othjer Reattas.

[harry yarnell]

Wait, the insurance company says the car's worth $5,000; and they want to offer you $1500?

What's wrong with this picture?!!

[jonlabree]

It depends on what state this happened in.

In Illinois the insurance Co has 30 days to settle with the insured. They may offer cash or if the insured wants, they have to supply him or her a list of cars that are the same model and can be bought for the same amount as offered.

[Ronnie]

I wish Tennessee followed the same rules as Illinois. Here you are paid for ACV (actual cash value). They look the car up in the NADA book, deduct or add for mileage and condition and that's what you get. The policies I've see, including mine, state they will pay "ACV". As far as I know they are not obligated to find cars or buy them for you if you aren't satisfied. I guess, depending on the agent, some are more willing to work with you than others.

[Guest jimmyk]

Is the car is a economic total loss? Meaning that the damage exceeds the fair market value of the car? Then the (Reatta) owner would get a check for the value of the car. Then the insurance co owns the car and it goes to a salvage auction.

If the (Reatta) owner wants to keep the car, the salvage value is deducted from the value of the car and the check is less by that amount. This way the owner does not have the hassle of tracking down the car and "buy it back".

Each state has different laws, but generally this is how it works.

You can PM me if you'd like.

Working on the "Dark Side", Auto insurance Reinspector.

Jim

[Guest Corvanti]

"your state may vary"

1989 Buick Reatta 2 Door Coupe Prices, Values & Specs - NADAguides

in my experience, with "classic cars", NADA values are very high to what actual value is.

i'd give a call to the reatta owner's agent to see if they will pick up the ball (if he has collision on it), to get a realistic settlement. here in NC, when my daughter was hit in our Rav4, my insurer didn't want me to make a claim unless i wasn't satisfied with the other's insurance. (would possibly raise my rate). i thought the Rav was totaled, but (in NC) if it costs less than 72% (i might be off a % point), to repair. they have to repair.

if the other's insurance won't budge on the $1,500, a quick call from an attorney (or his agent) acting on the reatta's owner behalf, may be all that's needed.

i lived in so-cal 'til '86, so i don't know what the heck your state gov't regulators have messed up since then.

again, your state may vary...

[wws944]

...if the other's insurance won't budge on the $1,500, a quick call from an attorney (or his agent) acting on the reatta's owner behalf, may be all that's needed....

What Corvanti said. Your client should NOT accept the initial low-ball 'cash settlement'.

[Guest TheCapnVideo]

NADA says $6325 for a 20 footer. Even if you let the insurance company get away with a $2000 deduction for the paint delamination that is still $4300 not $1500!

It is my son's car.

[Barney Eaton]

Our car club toured a collision repair shop last Saturday and I learned that in Texas if the repair cost (estimate) is $1 over the cars value, it is totaled. The trick here is the insurance company gets to establish the car value.