UPDATE: Sister's car totalled; Received $33k; Bought 2010 Merc E350; Love insurance!

[Safeway]

UPDATE:

I was a typical attorney; blowing a situation out of proportion.

It all worked out great. She received a rental car the next day. The insurance company cut her a check for $33,000 for her 2008 Lexus IS350 with under 19,000 miles, navigation, packages, etc. We went car shopping over the weekend and ended up buying a certified pre-owned 2010 Mercedes E350. Good trade.

No pictures of my sister. Stop asking.
_________________________________________________

A girl ran a red light and smashed into the front of my sister's IS350.

She paid the final car payment not even a week ago. The car was free and clear!

Although the red light runner was fully insured, my sister is going to get royally fucked over. We are 99% sure they will total the car out and offer her some paltry sum of money.

Why the fuck do we even carry insurance if the payouts are so worthless? Even though the incident was 100% not her fault, she will end up down over $10,000 when all is said and done. The car insurance industry needs its ass kicked. Home owners insurance actually does what it should in most cases if you have adequate coverage. Car insurance, however, does jack shit even when you are covered.

Venting.

 

[z0mb13]

Does she have full coverage??

 

[Safeway]

Does she have full coverage??

My sister and the perp both have full coverage.

The problem is, when they total the vehicle, they will cut a check for 60% of its replacement cost / value.

 

[Safeway]

2008 Lexus IS 350s with low miles, navigation, leather, etc. run from $25k to $30k.

She'll be lucky if they cut her a $15,000 check.

 

[Apex]

2008 Lexus IS 350s with low miles, navigation, leather, etc. run from $25k to $30k.

She'll be lucky if they cut her a $15,000 check.

Why is this? Is it because she doesn't believe in negotiating with them?

 

[jlee]

My sister and the perp both have full coverage.

The problem is, when they total the vehicle, they will cut a check for 60% of its replacement cost / value.

Since when?

 

[Safeway]

Since when?

It's a fact of life. Based upon my prior experience, insurance companies like to dick you over.

For instance:

My grandparents owned two identical 2007 Buicks. An intoxicated college female ran her SUV off the road and ended up hitting and totally four vehicles before coming to a stop. Two of the totalled vehicles were my grandparents' Buicks. The insurance cut a check insufficient to buy ONE replacement Buick. Out of pocket expenses.

For instance:

My mother's Nissan Maxima was totalled in a hit and run accident. The offending vehicle was found but the driver "was the owner's cousin, and he fled to Mexico." No charges could be filed. Our full coverage, high quality insurance company cut a check for roughly half of replacement cost.

 

[ReggieDunlap]

Granted it was many years ago, but my wife's car, 2003 Honda Civic EX sedan, was totaled before she completed paying off the loan. We had Full Coverage and the insurance company covered the Full Book Value of the Car (about 14K). From there, the remainder of the loan was paid off (5K) and we got 9K.

I dont know what insurance company you're with, but most wont pay the retail value of the car but the book value. So even though that 2008 Lexus IS350 might sell for 25K-30K on a lot or privately, you will still only get the Book Value of the car.

From where I used to live in PA, that year and model with 75K mileage, rated excellent condition on KBB.com gives a trade in value of just over 20K, 19.7K for very good condition.
http://www.kbb.com/lexus/is/2008-le...sedan&pricetype=trade-in&isnotabs=true#survey

 

[Safeway]

Granted it was many years ago, but my wife's car, 2003 Honda Civic EX sedan, was totaled before she completed paying off the loan. We had Full Coverage and the insurance company covered the Full Book Value of the Car (about 14K). From there, the remainder of the loan was paid off (5K) and we got 9K.

I dont know what insurance company you're with, but most wont pay the retail value of the car but the book value. So even though that 2008 Lexus IS350 might sell for 25K-30K on a lot or privately, you will still only get the Book Value of the car.

From where I used to live in PA, that year and model with 75K mileage, rated excellent condition on KBB.com gives a trade in value of just over 20K, 19.7K for very good condition.
http://www.kbb.com/lexus/is/2008-le...sedan&pricetype=trade-in&isnotabs=true#survey

That's my point. Insurance companies do not provide an enabling amount of money.

 

[Apex]

You can quite often negotiate replacement value, as long as you hammer that point. You need the amount of money required to replace the vehicle.

I had to negotiate with AAA when my car was stolen. When they wouldn't give me what it was worth, we ended up going through arbitration (basically, a 3rd party "expert" to determine the car value). They ended up paying replacement for the vehicle, plus 60% of retail on all of the aftermarket modifications on it.

Yeah, it took a little extra effort, but we ended up at almost 70% higher than they originally offered.

 

[Doppel]

Maybe it's different on an uninsured driver but this is the first I've heard of them cutting way below book value. If they do that, fight them. They should pay what it costs to replace it.

 

[HarryLui]

It's a fact of life. Based upon my prior experience, insurance companies like to dick you over.

For instance:

My grandparents owned two identical 2007 Buicks. An intoxicated college female ran her SUV off the road and ended up hitting and totally four vehicles before coming to a stop. Two of the totalled vehicles were my grandparents' Buicks. The insurance cut a check insufficient to buy ONE replacement Buick. Out of pocket expenses.

For instance:

My mother's Nissan Maxima was totalled in a hit and run accident. The offending vehicle was found but the driver "was the owner's cousin, and he fled to Mexico." No charges could be filed. Our full coverage, high quality insurance company cut a check for roughly half of replacement cost.

Start buy saying "No, I will not accept" and hire lawyer if needed. You can't agree to the first deal they put in front of you, ever.

 

[SearchMaster]

I've never had a problem with insurance. I had a claim a couple of years ago and got a fair value for my older car. Same with my wife's claim 15+ years ago. Hell, my mom had a year old Civic that someone totaled and she got more than she paid for it.

But yes, if they don't give you a fair value, document your case by finding similar cars for sale in the area and you should be able to get them to come at least close to a fair value.

 

[LTC8K6]

What does the plan say about how the value is determined? Is it replacement cost, or acv? A lot of people have an actual cash value policy, and not a replacement cost policy.

http://www.carinsurancequote.net/actual-cost-value-versus-replacement-cost.html

 

[luv2liv]

all good advice here. i pray i dont get into an accident.

 

[Zivic]

2008 Lexus IS 350s with low miles, navigation, leather, etc. run from $25k to $30k.

She'll be lucky if they cut her a $15,000 check.

BS....

if their offer seems low, find a 3-6 comps in the area and you will be more than fine. I have seen PLENTY of people get more than fair market value for their vehicles based on condition/mileage.

You are being way over dramatic with your 60% claim

 

[Gillbot]

You can quite often negotiate replacement value, as long as you hammer that point. You need the amount of money required to replace the vehicle.

I had to negotiate with AAA when my car was stolen. When they wouldn't give me what it was worth, we ended up going through arbitration (basically, a 3rd party "expert" to determine the car value). They ended up paying replacement for the vehicle, plus 60% of retail on all of the aftermarket modifications on it.

Yeah, it took a little extra effort, but we ended up at almost 70% higher than they originally offered.

BS....

if their offer seems low, find a 3-6 comps in the area and you will be more than fine. I have seen PLENTY of people get more than fair market value for their vehicles based on condition/mileage.

You are being way over dramatic with your 60% claim

Yep, you can negotiate with them. Just go to dealerships or look online in your area and print out the sale pages/ads, etc. Take them with you and show them.

 

[Fenixgoon]

So you're pissed even though you haven't seen what the insurance provider is offering yet? You shouldn't be pissed then....(yet)

 

[amdhunter]

I've never seen anyone get 60% from insurance. She'll be OK.

 

[ViviTheMage]

My sister and the perp both have full coverage.

The problem is, when they total the vehicle, they will cut a check for 60% of its replacement cost / value.

You can fight it, if they offer you 11k, show them craiglist listings/ebay listings of recently sold/posted cars for your car you can get it up to what it's worth, ie if it's REALLY worth 20k.

 

[Safeway]

Thanks for the advice.

I was up until 5:30am this morning working on some M&A intellectual property due diligence. Alarm set for 7:30am, and back at the office by 8:30am. Blurgh.

I'll talk my sister through the process. I spoke to some attorneys here and they offered their services free of charge if the insurance is unwilling to negotiate. If I wrote a letter to the insurance, it wouldn't carry much weight coming from the same surname. If a fellow associate writes it, it would appear more threatening.

 

[Safeway]

So you're pissed even though you haven't seen what the insurance provider is offering yet? You shouldn't be pissed then....(yet)

It's reflexive. Insurance? Pissed.

 

[Safeway]

You can quite often negotiate replacement value, as long as you hammer that point. You need the amount of money required to replace the vehicle.

I had to negotiate with AAA when my car was stolen. When they wouldn't give me what it was worth, we ended up going through arbitration (basically, a 3rd party "expert" to determine the car value). They ended up paying replacement for the vehicle, plus 60% of retail on all of the aftermarket modifications on it.

Yeah, it took a little extra effort, but we ended up at almost 70% higher than they originally offered.

Wow, that is better than you could have hoped to do in a private, third party transaction.

This gives me hope.

 

[RKS]

Truthfully there isn't much incentive to move without threat of litigation. In most auto accidents I will help my clients negotiate a higher claim for their property damage but only make money on any injury claims.

 

[angry hampster]

Allstate gave me 100% of KBB "Good" private party value for my GTI when it was totaled in 2010. OP, calm down before you even know what they're going to offer.