Question about car insurance and an accident...

[CoffeeCat]

I was just in a car accident and I'm wondering about an insurance matter.
I can't reach our agent, as it is a holiday weekend.

The accident was the other driver's fault. She blew a stop sign, and admitted
this to the police.

The front end of our car is very smashed. My husband said the insurance co will
probably say it is totaled.

My question is about reimbursement. Our smooshed car is a 1999 SUV. It was $65k brand
new in 1999. If this car is totaled, how are reimbursed for the damages? Does
the insurance company figure a "fair market value" for replacement?

Does the price we paid for the car factor in--at all--when they
figure how much to reimburse us?

Thanks for any info. I'm a bit stunned right now. I broadsided her, and her car
is completely gone. There was a baby in a car seat in the back, and a lot of hysteria
involved. Fortunately, the baby is fine, but was taken by ambulance, as a precautionary
measure. I am not the most stable person, but I was the most centered one at the scene--
calling 911 and trying to calm everyone down. It was really upsetting.

Thanks again...

[warrior1]

1. try looking on kelly blue book

http://www.kbb.com/

[YDogg]

2. I don't know, but thank goodness you are okay ...

... and that nobody else was hurt.

[CoffeeCat]

5. Yes, that's the most important thing...

...the mother at the scene just stood outside of her car screaming, "My baby! My baby!".
I was so freaked out because I couldn't see the baby and the car seat had tipped over.

Yes, we were all very lucky...and it's a Godsend that no kids were playing in the area.
Both cars ended up in yards and the accident happened next to a school in a residential district.

[Richard Steele]

3. It varies greatly, depending upon your insurance carrier.

You'll really need to talk to them to find out
what system they use to determine payments.

Glad you and everyone else involved is OK! :thumbsup:

[salin]

4. in theory they use the blue book value of the car

Year, make and model (what a comparable car of the same year would cost to buy today.) But I believe it tends to be a bit less than that - as the claim is the blue book value is for a car in "pristine" condition.

My mother had a three year old Prius that was totaled - and received about 3,000 less than the current cost of that model year of Prius. She took the money and bought a year younger Prius and viewed the difference as a 'lower cost' for a slightly longer to-live (so to speak) car. I would guess that if your car was in good condition that you should get about 75-80% of the blue book value.

[dmallind]

6. Generally

They will use "gold book" values for the car. These are the same used by dealers and are generally a bit lower than those "blue book" values which can be found at kbb.com but that's not a bad start.

Unfortunately $65K sticker 8 year old SUVs are likely to have depreciated pretty heavily. If it's the big Lexus it might not have lost QUITE as much but IIRC they didn't get to 65K at that time (not much more now) but anything like Range Rovers etc drop pretty badly.


Do they use the sticker price? Only inasmuch as that's where the depreciated value starts from at the very basic level.

[CoffeeCat]

10. Yes....

It's a Range Rover HSE. So they drop quite a bit, eh?

[dmallind]

25. You're not going to like this

I feel for you and obviously your well being is the most important thing but unless you are very lucky or extremely well insured you're probably going to get 15-17K out of it.

One thing you can do is try and insist on keeping the car after they write it off. I did this a few years ago when I was rear ended and I really had to push but they totaled my car and let me keep it as salvage. I sold it - a much lesser car than yours - for about $1500 to a body shop. You should be able to get a bit more I would hope.

[CoffeeCat]

26. We're are crossing our fingers...

...and hoping that the car isn't considered totaled.

We just want them to repair the dang thing, so that we can be on our way. I know that we are going to also
asked for "diminished value" damages as well. Since the car has been in an accident that will decrease it's
value--we're hoping to get additional money for that.

I was just told, by some Ranger Rover experts that our car will probably only get 10 or under. People aren't
buying Rovers as much because of gas prices and the older models are expensive to repair. So, right now their
value is tanking.

This should be interesting.

My back is hurting too. I'm feeling some pain now, and I'm pretty bummed about that. I had back surgery
in 2000--I ruptured a disc (L4-L5), and my back hurts there! I'm going to have to see a Dr on Tuesday.

Thanks for your advice and insight. You are right...the most important thing is that everyone is ok.

[Bunny]

7. I think they give you the current retail value of the car, probably per Kelly Blue Book.

Hopefully, you do not owe more than that on the car (it's called being upside-down), because you are responsible for the difference. In any case, I'm glad you're okay!

[CoffeeCat]

11. No, the car is pd for...

...so that's one good thing--from an insurance/financial perspective.

[tammywammy]

21. To prevent being upside down if your car gets totaled

Buy Gap insurance. The dealership sells it and it only adds a couple bucks each month. It'll cover any difference between what you own and what the insurance company gives as the value.

[Bunny]

22. Yes, gap insurance is well worth the cost.

I've had it on my last two cars, hopefully I will never need it!

[kanrok]

8. You should contact your insurance company

Your agent will just give you the 800 number to call the claims department. If your insurance card does not have the claims department number on it, do a google search. Most, if not all, insurance companies have a 24 hour claims center. This will get the ball rolling for you.

The settlement value of your car is determined by the value attributable to your car at the moment immediately before the crash. The mileage, condition, year, make and model are all taken into consideration. It is a good idea to go to Kelley Blue Book to get a general idea what your car is worth.

Remember the value of your car is negotiable, but within very tight limits. Keep in mind that many states also allow you to recover damages for "loss of use." Basically, this is some extra money thrown in for the BS you have to go thru to get back to whole. Make sure you ask your adjuster if they compensate you for "loss of use" as well as your property damage.

If you get up the next day or so and feel beat up, by all means get yourself checked out, just to be on the safe side. Good luck

[CoffeeCat]

16. Thanks for the "loss of use" tip...

...that's something that I didn't know.

I appreciate that very much.

Thanks again!

[cloudbase]

9. Glad you're okay.

The insurance company doesn't care what you paid for the vehicle. Depending on the insurer, they'll take the value of the vehicle and compare it to the cost to repair it. If the cost to repair it is in excess of some percentage of the vehicle's value, the company will declare the vehicle a total loss, and should cut you a check for the value of the vehicle (less deductable amount). If the cost to repair the vehicle doesn't exceed their percentage, they'll pay to have the vehicle repaired. Your state insurance commissioner's office should be able to help explain the process if you have any questions.

[Bunny]

13. When I crashed my car ten years ago, it was 80%.

I was pretty mad that the insurance company wouldn't total it, it was really crunched. They said repairs would not exceed 80% of the retail value, so they proceeded to "fix" it. The car never ran right afterward, and I had to get a new one about ten months later.

[Ms. Toad]

23. I had the opposite experience

The insurance company wanted to total mine. Since the amount they wanted to give me for my 5 year old car wouldn't have purchased an equivalent replacement I was forced to hire an attorney to fight them on it. They ended up paying not only to repair my car and medical bills (all I really wanted) but an additional $8000-$10,000 for "pain and suffering" on top of it because the attorney was instructed to get enough to pay his bills. (I told them up front my limited request, and that if they were not willing to settle with me for keeping my car and actual out of pocket expenses that I would be involving an attorney that would ultimately cost them more - they refused to settle.)

My car lasted another 5-6 years in my possession, then was passed on to two other family members before I lost track of it.

To the OP: Two suggestions: In most states if they total your car you will be given a salvage title and there is no guarantee that you will ever be able to obtain a road title again (even if you manage to keep and repair your car). If there is a chance you want to keep your vehicle, you need to get the process stopped before your car is officially totaled.

Second: Go see a doctor - even if you feel fine. Adrenalin is a wonderful thing - it allows you to function in extreme conditions. It can also mask pain. If you ultimately have difficulties, having your injuries formally documented (even if it is just documentation that you took the accident seriously enough to seek medical review) is helpful. My back did not hurt the day of the accident, but a few days later it was clear that it had activated an old back injury. Partly because I had gone to the doctor immediately, no one questioned the subsequent medical treatment and physical therapy I ultimately needed (and the pain and suffering award that I didn't really "need" (money doesn't really make living with pain any easier) - but it paid my attorney bills so I could keep my car).

[CoffeeCat]

14. Thanks so much for that info...

...I appreciate your wisdom.

Very helpful. :)

I'll keep the state insurance commissioner's office in mind, if we have any snags along the way...

[napi21]

12. Insurance companies use a book value for reimbursement, and

usually will add or subtract from that amount based upon the condition of the vehicle. ie: if it had new or fairly new tires, low mileage, etc. increases the value, and worn tires, poor appearance and high mileage reduces the value.

If your vehicle was in really great condition with low mileage, you could try to get the ins. comany to replace it wil "like kind". In other words, tell them you cna't afford another car, the one you had was GREAT, and through no fault of yours, it's gone. You want them to find another one in similar condition to replace it! It doesn't always work, but it's worth the try. Book value on a vehicle that is 8 years old is usually not very much.

Go to Google and entr car values and you should find the 3 major raters, Kelly, Edmonds, etc. and check each one. Atleast it should give you an idea what you should be looking for in an offer.

BTW, you might also try to google your ins.l co. name. All the ones I know have 800 #'s and have a contact on weekends and holidays.

Good luck to you.

[GreenPartyVoter]

15. I am so glad everyone is ok. I hope that you can get an answer to your

question soon. I am surprised you can't reach an agent. My brother is one and he has to work weekends particularly because of the higher incidence in traffic accidents.

[CoffeeCat]

17. Thanks....

...my husband is trying other numbers.

Everyone here has been so helpful. Aren't DUers great?

Thanks for your post.

[sandnsea]

18. You should call the 800 number

They should at least authorize a rental and put the paperwork in motion. Glad everybody is okay, what an awful experience! :hug:

[Warpy]

19. You'll get a reimbursement based on current Blue Book

or N.A.D.A. valuations. You will not get full remibursement for a new SUV.

You should get enough or nearly enough to buy one of the same vintage, should you so choose.

[Kali]

20. first of all do you have full coverage?

in my state it isn't required and on a car that old, a lot of folks don't pay the extra - just carry uninsured/underinsured/medical/liability.

Yes current fair market value of the vehicle original price is a non-issue - you may be able to argue them up if they lowball you. Start checkin adds/Kelley Blue book as mentioned etc.

[CoffeeCat]

24. Thanks everyone!!!

I just wanted to say that I so appreciate your responses, advice,
concern and wisdom.

I was pretty shaken up when I wrote that post. Just knowing that
people took the time to respond--helped me to feel comforted. I know
that may sound a bit sappy, but hey--there it is.

Thank you so much DUers.

I'm always so impressed with the amount of knowledge and compassion here.

It's invaluable!

:)

[The Vinyl Ripper]

27. I don't know what the laws are in your state..

But where I live, the insurance company of the one at fault pays the damages.

One way to leverage the other person's insurance is to make a medical claim for your back, the harder time they give you, the worse your back hurts, if you get my drift.

Don't immediately accept the first offer they give you, all this stuff is negotiable at least to some extent and what the insurance company really wants to avoid is medical expenses since they can run far more than replacing your car.

Quite possibly you can get your own insurance company to do the negotiating with the other person's insurance, this has happened to us in the past.

Keep receipts for *anything* remotely related to the accident. Car rental, taxi service, doctor visits, everything..

[CoffeeCat]

28. I really appreciate your post...

...there really is so much that people need to know when they get in an accident, isn't there?

That's nice that you care enough to inform people. You really can get screwed if you don't
advocate for yourself.

Yes, in my state, the insurance company of the other driver pays the damages. She blew a stop sign and
she told everyone (including myself and the police officer at the scene) that the accident was her fault.

I was wondering about the role of my insurance company. Are they really our advocate? Or are they on the
same page as the other insurance company? I hope that I can trust my agent to help us out.

I'll have to talk out my back situation with my insurance company. I have aches and pains, but I don't know
what that means right now...I don't know what that means (if anything) as far as compensation goes. I just
hope it doesn't get any worse. I wonder if it's necessary to call an attorney?

Thanks for the reminder about receipts. We're probably going to have to rent a car.

Again, thanks for taking the time to post what you did. I hope others can learn from this dialog too.
It's easy to ignore the subject of insurance, but when something happens to you, information on the
subject is so vital!