DreamDSM
February 5th, 2008, 09:19 PM
I'd hate for this to happen, but face it, if you drive on the road, there's a chance something will happen. And when that something happens, your insurance company will try their best to pay you the least amount of money they possibly can. They're trying to make money, not help you out.
Here is the best advice I can give you regarding handling an insurance claim as an ex auto claims adjuster with over 7 years experience. If you have any questions regarding a claim e-mail and I'll help you.
Information on how to deal with an Insurance company after a loss.
Total Loss Vehicles:
To decide if a car is a total the company figures out what the value is minus the salvage value. If this value is less then the repair costs, your car is considered un-economically repairable (totaled). If it is a borderline (meaning the 2 numbers are close) you can make the difference. If you don't want it saved just tell them. Speak to a supervisor if you need to. Become a polite, but consistent irritation and they will give in. Start picking all sorts of things that you think were caused by the loss (real or imagined). Start explaining how you won't accept the car unless the repairs are perfect. Tell them about how you think every ding and little dent was caused by flying debris from the loss. On a fire/flood loss tell them about a friends car that they never could get the smell out of. Tell them about how the car never ran right and it fried the computer and the stereo. They will soon get the hint.
If you don't want your car totaled you do have some choices. There is really only 1 good reason to save a borderline car and have it work out to your advantage. If there is no major damage (meaning frame or suspension) and you are really attached, you should make them aware of your desire. You are going to have to talk them into it and probably sign a release after they get a guaranteed bid (this means the shop will do the repairs for this amount or eat the cost over-run) from the shop. It is usually better to let them total it and then keep the salvage (more on that later).
Give them a few days to start getting a value for the car. Here is your dose of reality. The car has a value. This is the actual cash value. Meaning the actual value that someone would pay for it, in the condition it's in, in the area it's in. It doesn't matter that you were wronged and it's not your fault. It doesn't matter that your car is the only one of it's kind (scarcity doesn't equal more value). It doesn't matter that 2000 miles away, in whatever car show, you saw one like it sold for a million dollars. You know more about your car then the adjuster. Use this to your advantage.
The insurance company is lazy by nature. They enter your cars information in a computer (after getting the blue book values) and send it to an evaluation company. Their computer has car ads stored in it. It finds similar cars to yours, spits out those adds, comes up with an average based on those cars and values stored in their database. This is the value they send back to your insurance company. If your adjuster has extra time they will call the ads and check out the sale price (not the advertised price). When the adjuster comes back with a value you will be armed with better information. You should have already done your research. You need to look for information on cars similar to yours. You want ads from cars of similar model year, options and mileage. You want hi-priced cars. You don't owe them any favors, don't help them by giving them ads that low ball your case. They aren't going to show you the higher priced ones. Cars that a little worse then yours but asking a higher price help out more. It's hard to talk you down if you can show that cars with more miles and less options than your car are going for more then they are offering you. You need to be realistic on this. Don't find a show car to give them when yours is a daily driver. Call the ads and look at the ones that support your case. Document everything. Nothing gets the value higher then a stack of paper dropped on an adjusters desk (which then usually goes to a supervisors desk).
This also helps to educate you on what your car is worth. Remember that all the race parts you added to your car don't increase the value much at all. Modifications can add some value, but $4500 in huge wings, flares, skirts etc... don't add $4500 value to your car and may take away from the value. This applies more to stereos. A $5000 stereo in a $5000 car doesn't make the car worth $10,000. Another thing that helps is to ask for their examples and their evaluation (you are allowed to have it). Call the numbers on the ad to see the condition of the car and how it compares to yours. If you can show that their evaluation is off and those ads were nothing like your car all their numbers are suspect.
Another tip: time is on your side. The longer you wait the worse it looks to have that file sitting around on that person's desk. Don't sign anything giving them permission to remove the car from the tow yard. The longer the car sits there, the more they have to pay for storage and the more likely they are to settle. Keep hitting them with more information and keep on them. Be polite and firm. If the adjuster is rude and/or doesn't seem to be cutting it, move up to a supervisor. If not happy with them, move up to their manager and then the division manager and so on. You just have to show them that they are going to spend more money saying no then saying yes. A HUGE plus in your favor is the old 'Squeaky wheel gets the oil'. Keep moving up the chain of command. They will get more nervous. No one likes to get a call from the higher ups asking why this insured is calling them. I've seen it time and time again. Your supervisor gets a call from higher up saying "Just get rid of it. Do whatever it takes."
Never get rude, just advise them you'd like to speak with the next higher person in the chain as you aren't satisfied. You can also help yourself by threatening to file a complaint with your state insurance commission. This can have a lot of affect depending on your state. Many states will fine an insurance company for not properly handling a claim, not paying enough, harassing you, and not responding fast enough to you. This will usually shake them up and help get you what you want. Don't bother with an attorney. The attorney is not used to cars, repairs, actual cash value, depreciation, options, condition of your car vs the examples, etc... You can try it as a last resort, most times you end up just wasting time and money. It may help on a medical claim, but on a car you will usually not be helped. Document every interaction with the insurance company and how they dealt with you. Nothing gives you more credence and makes and adjuster look worse to their supervisors than you presenting evidence of abusive behavior, bad judgment, bad claims handling, not returning calls , etc...
Last tip on a total loss claim. If you have a lot of money in modifications to your car you will probably want to keep salvage. This pays off if you are smart. Have a place you can store the car. Make sure you are realistic on how much you can sell the parts off your car for (or on the amount of money you will save by keeping the parts for your next car). It usually doesn't pay to try and rebuild the car. Your car will have a salvaged title (making it harder to insure or sell). Also, call some salvage yards for bids on your car and call the company that your insurance company called. Sometimes the salvage company will pay less then what they originally bid for and this can save you money. They will take the salvage amount from your check if you keep salvage. This is because they would normally get that amount from the salvage yard. Move the car from the tow yard AS SOON as you settle. The insurance company is responsible for the tow and storage fees up to the settlement date. Make sure they have called the tow yard and confirmed the amount that is due so you can pick-up your car.
Remember, You are just a file on a desk. Your adjuster doesn't hate you, they just want to get the file handled. To the company it's all a business of numbers. They know that the more claims they can settle for a lower price the more money they make. You just have to show them you are going to be that small percentage that knows what they are talking about. Don't forget it's just a business. It's not wrong or right. There is no reason to open a business that loses money. They aren't out to get you, they aren't evil, they just get paid to do their job (just like you).
SGT Greg Rowe
'90 Eagle Talon AWD 'Little Monster'
[One thing I wondered about. If they are not willing to give you any extra money for the mods you add, don't you have the legal right to remove them from the car, even if they are going to condemn the car? -talon mgr]
Yes, the main caveat is that the vehicle can't be disabled by what you removed. Examples: If you pull off your 3" exhaust, you need to put something back on. If you pull off your 17's, you need to put some type of wheels and tires back on. All your HKS electronics can be pulled if the car will still run without it. I know sometimes the adjuster won't care and will let you pull off the whole exhaust if the engine was damaged and the car won't run anyways. This can help you get back a lot of your missing money. Sell the parts to others and ask for their stock parts. If you keep salvage you can strip anything off that you want. Salvage company may not give you as much if you do something crazy and pull the engine and drivetrain as than they can't sell that part.
Credits:
Source = www.Vfaq.com
From: Greg Rowe m1tanker@mn.rr.com Date: 02 May 2001 00:55:13
Copy and Pasted by: DreamDSM... Lol
Here is the best advice I can give you regarding handling an insurance claim as an ex auto claims adjuster with over 7 years experience. If you have any questions regarding a claim e-mail and I'll help you.
Information on how to deal with an Insurance company after a loss.
Total Loss Vehicles:
To decide if a car is a total the company figures out what the value is minus the salvage value. If this value is less then the repair costs, your car is considered un-economically repairable (totaled). If it is a borderline (meaning the 2 numbers are close) you can make the difference. If you don't want it saved just tell them. Speak to a supervisor if you need to. Become a polite, but consistent irritation and they will give in. Start picking all sorts of things that you think were caused by the loss (real or imagined). Start explaining how you won't accept the car unless the repairs are perfect. Tell them about how you think every ding and little dent was caused by flying debris from the loss. On a fire/flood loss tell them about a friends car that they never could get the smell out of. Tell them about how the car never ran right and it fried the computer and the stereo. They will soon get the hint.
If you don't want your car totaled you do have some choices. There is really only 1 good reason to save a borderline car and have it work out to your advantage. If there is no major damage (meaning frame or suspension) and you are really attached, you should make them aware of your desire. You are going to have to talk them into it and probably sign a release after they get a guaranteed bid (this means the shop will do the repairs for this amount or eat the cost over-run) from the shop. It is usually better to let them total it and then keep the salvage (more on that later).
Give them a few days to start getting a value for the car. Here is your dose of reality. The car has a value. This is the actual cash value. Meaning the actual value that someone would pay for it, in the condition it's in, in the area it's in. It doesn't matter that you were wronged and it's not your fault. It doesn't matter that your car is the only one of it's kind (scarcity doesn't equal more value). It doesn't matter that 2000 miles away, in whatever car show, you saw one like it sold for a million dollars. You know more about your car then the adjuster. Use this to your advantage.
The insurance company is lazy by nature. They enter your cars information in a computer (after getting the blue book values) and send it to an evaluation company. Their computer has car ads stored in it. It finds similar cars to yours, spits out those adds, comes up with an average based on those cars and values stored in their database. This is the value they send back to your insurance company. If your adjuster has extra time they will call the ads and check out the sale price (not the advertised price). When the adjuster comes back with a value you will be armed with better information. You should have already done your research. You need to look for information on cars similar to yours. You want ads from cars of similar model year, options and mileage. You want hi-priced cars. You don't owe them any favors, don't help them by giving them ads that low ball your case. They aren't going to show you the higher priced ones. Cars that a little worse then yours but asking a higher price help out more. It's hard to talk you down if you can show that cars with more miles and less options than your car are going for more then they are offering you. You need to be realistic on this. Don't find a show car to give them when yours is a daily driver. Call the ads and look at the ones that support your case. Document everything. Nothing gets the value higher then a stack of paper dropped on an adjusters desk (which then usually goes to a supervisors desk).
This also helps to educate you on what your car is worth. Remember that all the race parts you added to your car don't increase the value much at all. Modifications can add some value, but $4500 in huge wings, flares, skirts etc... don't add $4500 value to your car and may take away from the value. This applies more to stereos. A $5000 stereo in a $5000 car doesn't make the car worth $10,000. Another thing that helps is to ask for their examples and their evaluation (you are allowed to have it). Call the numbers on the ad to see the condition of the car and how it compares to yours. If you can show that their evaluation is off and those ads were nothing like your car all their numbers are suspect.
Another tip: time is on your side. The longer you wait the worse it looks to have that file sitting around on that person's desk. Don't sign anything giving them permission to remove the car from the tow yard. The longer the car sits there, the more they have to pay for storage and the more likely they are to settle. Keep hitting them with more information and keep on them. Be polite and firm. If the adjuster is rude and/or doesn't seem to be cutting it, move up to a supervisor. If not happy with them, move up to their manager and then the division manager and so on. You just have to show them that they are going to spend more money saying no then saying yes. A HUGE plus in your favor is the old 'Squeaky wheel gets the oil'. Keep moving up the chain of command. They will get more nervous. No one likes to get a call from the higher ups asking why this insured is calling them. I've seen it time and time again. Your supervisor gets a call from higher up saying "Just get rid of it. Do whatever it takes."
Never get rude, just advise them you'd like to speak with the next higher person in the chain as you aren't satisfied. You can also help yourself by threatening to file a complaint with your state insurance commission. This can have a lot of affect depending on your state. Many states will fine an insurance company for not properly handling a claim, not paying enough, harassing you, and not responding fast enough to you. This will usually shake them up and help get you what you want. Don't bother with an attorney. The attorney is not used to cars, repairs, actual cash value, depreciation, options, condition of your car vs the examples, etc... You can try it as a last resort, most times you end up just wasting time and money. It may help on a medical claim, but on a car you will usually not be helped. Document every interaction with the insurance company and how they dealt with you. Nothing gives you more credence and makes and adjuster look worse to their supervisors than you presenting evidence of abusive behavior, bad judgment, bad claims handling, not returning calls , etc...
Last tip on a total loss claim. If you have a lot of money in modifications to your car you will probably want to keep salvage. This pays off if you are smart. Have a place you can store the car. Make sure you are realistic on how much you can sell the parts off your car for (or on the amount of money you will save by keeping the parts for your next car). It usually doesn't pay to try and rebuild the car. Your car will have a salvaged title (making it harder to insure or sell). Also, call some salvage yards for bids on your car and call the company that your insurance company called. Sometimes the salvage company will pay less then what they originally bid for and this can save you money. They will take the salvage amount from your check if you keep salvage. This is because they would normally get that amount from the salvage yard. Move the car from the tow yard AS SOON as you settle. The insurance company is responsible for the tow and storage fees up to the settlement date. Make sure they have called the tow yard and confirmed the amount that is due so you can pick-up your car.
Remember, You are just a file on a desk. Your adjuster doesn't hate you, they just want to get the file handled. To the company it's all a business of numbers. They know that the more claims they can settle for a lower price the more money they make. You just have to show them you are going to be that small percentage that knows what they are talking about. Don't forget it's just a business. It's not wrong or right. There is no reason to open a business that loses money. They aren't out to get you, they aren't evil, they just get paid to do their job (just like you).
SGT Greg Rowe
'90 Eagle Talon AWD 'Little Monster'
[One thing I wondered about. If they are not willing to give you any extra money for the mods you add, don't you have the legal right to remove them from the car, even if they are going to condemn the car? -talon mgr]
Yes, the main caveat is that the vehicle can't be disabled by what you removed. Examples: If you pull off your 3" exhaust, you need to put something back on. If you pull off your 17's, you need to put some type of wheels and tires back on. All your HKS electronics can be pulled if the car will still run without it. I know sometimes the adjuster won't care and will let you pull off the whole exhaust if the engine was damaged and the car won't run anyways. This can help you get back a lot of your missing money. Sell the parts to others and ask for their stock parts. If you keep salvage you can strip anything off that you want. Salvage company may not give you as much if you do something crazy and pull the engine and drivetrain as than they can't sell that part.
Credits:
Source = www.Vfaq.com
From: Greg Rowe m1tanker@mn.rr.com Date: 02 May 2001 00:55:13
Copy and Pasted by: DreamDSM... Lol