Negotiating car settlement with GEICO - advice on car replacement value?

Question

I had a minor (5 mph) accident with my '99 Saab Convertible. What looked like just replacing bumper was estimated at $8000 of repairs (1/2 parts, 1/2 labor). GEICO opted to "total" the car at a value of $8300. The comps were based on 8 local cars - 2 were actual sales at avg of $8700; 3 were dealer ads at avg of $7900.

My research suggests their dealer ads as comps are bogus -- my two local dealer comps (including 1 from same deal that had their lowest comp) is ~$9500. Clearly their dealer comps were selling very bad cars, but they didn't give VIN # - just license plates.

My 5 comps indicate the value is $8700 to $9300.

Maybe if I get value high enough, I will convince them to fix my car (for $8000) - any suggesting on facts or arguments that work with GEICO (I tried good condition, new tires, new convertible top)

Answer 1

If car is drivable, take it to a dealer(s). Ask dealer(s) to write a quote on its retail value, as though it were un-damaged, on their stationary. As an inducement to get dealers to help you, indicate to them you assume the car will be totaled by insurance co. and that you want highest possible dollars in settlement. Further indicate to the dealer(s) you'll come back and see them about a purchase after you receive settlement and that highest value quotes will get the best chance at your business. Dealers will comply and insurance co. will be hard pressed to ignore car's retail value as expressed by professionals in your area.

Answer 2

1

Answer 3

Geico Replace Your Car

Answer 4

This Site Might Help You.

RE:
Negotiating car settlement with GEICO - advice on car replacement value?
I had a minor (5 mph) accident with my '99 Saab Convertible. What looked like just replacing bumper was estimated at $8000 of repairs (1/2 parts, 1/2 labor). GEICO opted to "total" the car at a value of $8300. The comps were based on 8 local cars - 2 were actual sales at avg of...

Answer 5

Most companies use NADA as a baseline for value, adding and / or subtracting for condition, mileage and options. Market value, or actual cash value (ACV) is nothing more than what the buying public is willing to pay for your car. There is NO advantage for GEICO to total your car vs repair. Companies are faced with state laws that REQUIRE them to declare the unit a total if cost to repair exceeds value or percentage of same, (usually 75-80%). Even if the car was worth $9,500.00 (which would be a real stretch), the total loss threshold is still exceeded. You can argue until you turn blue but there is NO way any insurer will circumvent state law to accommodate you. Your best course of action is to verify your research and present it to the claims adjuster in order to elevate the value if possible. If you turn combative you can forget any negotiation.

Answer 6

Generally an insurance company wil total out a vehicle if the damage is in the area of 80% of the vehicles value. You can also look at this as portection for you. We all want the highest amount in a settlement. If your research indicates a higher value and the insurance carrier refuses to acknowledge your research, consider contacting the Department of Insurance. They will look into the matter and make certain the insurance carrier is handling your claim within guideines of the insurance commissioner

Answer 7

They don't care what the replacement value is, since they are not obligated to give you replacement value, but merely the value of your vehicle at the time of loss, adjusted for condition. If the repair costs get close to that actual value, they will compensate you that amount, and then they will own your vehicle. Most often they will take it to a recycling yard where they will sell parts off it or fix it and sell it using parts in their inventory to recoup their losses. You can also opt to let them compensate you and then "buy back" the vehicle and fix it yourself. Once they have decided to go one way or the other, it is hard to get them to change their mind. I know of many cases where an owner didn't want their vehicle repaired because they didn't trust it to be fixed right that didn't have a choice in the matter. Try, but don't hold your breath.

Answer 8

Its simply mathematics- if a vehicle cost more to repair then to replace- a vehicle is totalled. In most states- a vehicle whos repairs cost 80% of the vehicles worth is totalled (this is to address the fact that most repairs will have supplements above the preliminary estimate.) There is no way to "convince" a company your vehicle is repairable. They work on two values- the Actual Calue Value of your vehicle and the estimate amount. Clearly in this case, regardless on if you get them to move up the value of your vehicle by a few hundred- your vehicle is totalled. Do you really want to drive around a vehicle that should be totalled anyways?

Answer 9

First, when a total loss is handled, it's assumed the vehicle was maintained, so basically you get a "good condition" right off the bat. Secondly, it's unlikely you'll convince them to pay for repairs vs. total loss. If you have good factual information you can negotiate the total loss settlement-A LITTLE BIT. Most total loss adjusters have heard it all.The process is the same with all insurance companies, so nothing special works with one company in particular.

Answer 10

2