What can I do?

Question

I was involved in an automobile accident, and my car was totaled. My company is not offering me a fair settlement on my claim. Tt was a 1999 Pontiac Grand Prix with approximately 150,000 miles on it. They offered me $1900 less the deductible. The claims rep said that due the high mileage, that's why they offered such a payment.

I'm in the state of Alabama

Answer 1

You were offered the low end of book value. Insurance companies like car companies use two books, a wholesale book and a retail book. The benefit you have in almost EVERY state, the insurance company is REQUIRED by law to give you REPLACEMENT VALUE minus your deductable. as far as the other posts claiming as much as $7,500, I wouldnt guess that high because the car is over 7 years old now and has ALOT of miles, but what you have the legal right to do, is contact dealers with SIMILAR cars (same year and about the same condition and miles) and get written price quotes to buy them. Then you can submit this to your insurance company for a claim. if they do not accept them, get a lawyer. Also, what MOST people do not know, since you paid tax on your car when you purchased it, and will have to pay tax on the new car to replace it, most states require the insurance company to reimburse you the loss value plus tax minus the deductable.

Answer 2

I went online to kbb.com and plugged in your vehicle and a Mobile, Alabama zip to get you accurate numbers. The TRADE-IN value of your car, with 150000 miles (average is 81000 so you are a bit high on miles), varies as follows depending on what model you have.

SE 4 dr. $2100.00
GT 4 dr. $2900.00
GT 2 dr. $2525.00
GTP 4 dr. $3600.00
GTP 2 dr. $3650.00
These numbers assume the vehicle was in "excellent" condition before the wreck. (no damage, rust, perfect paint, no dents, dings, clean interior, minimal wear). Most cars fall into the "good" category (minor paint flaws, signs of wear and use, but still decent overall). So, assuming your car was an SE or GT model and wasn't in totally excellent shape, then the $1900 number is about right. If it was a GTP model, then realistically they are $200-$500 low.
The problem is, (and most people don't realize this)- your insurance coverage isn't designed to reimburse you for the RETAIL value of the car, which is a higher number...it reimburses you for the MARKET value of the car. This means that you will have to come up with a few extra bucks to replace your vehicle, or take the money and buy whatever car you can afford in that range. It stinks, but unless you have a "full replacement cost" rider on your policy, you just get market (trade in) value. (If you don't know whether you have "full replacement" coverage, then you DON'T have it... as it must be specifically requested, along with your having to pay the extra premiums for it.)

Try to negotiate them up to the best number you can. Good Luck.

Hope this info helped.

Answer 3

I dont have my software in front of me so i cant check if that value is correct... but keep in mind... actual cash value (if done right) - is non-negiotable. Meaning an adjuster simply puts your VIN into the software, puts your mileage in, as well as you options- and out comes the value of your vehicle.

In addition- pre existing damage to the vehicle takes off value and will be deducted. Can you think of anything that was wrong with your car that wasnt accident related?

If you truly do not beleive they are being honest ask for a print out of how they got their offer. But dont expect for a lawyer to do anything but take away 1/3 if they even offer to handle the case.

Answer 4

You can, of course, refuse the settlement amount and re-negotiate for more. What they offer is the value of the vehicle at the time of loss, adjusted for condition. High mileage would take some off, but the amount they are offering seems low unless there are other factors, bald tires, no stereo, pre-existing damage, that type of thing.

Answer 5

That doesn't sound right. Retail on that -- even for a base SE model with no options and those miles -- is around $4,600. A loaded GTP would be nearly $7,500. If there was any pre-existing damage they would deduct for that, however.

Go to http://www.kbb.com or http://www.nada.com and look up the retail value for your car. Print that out and take it to the agent and ask them to justify their low-ball offer.

When you do get the claim settled, change insurance companies!

Answer 6

They didn't come up with that number arbitrarily. That's the value of your vehicle, what else can you do? If you think it's worth more you'd have to support that with some kind of proof. I say take it. That is a lot of miles!

Answer 7

They are trying to screw you...

NADA says the car is worth $3125.

Tell them that $1900 is completely unacceptable and that if you don't get another offer by the end of the day that they can hash it out with your lawer.

Answer 8

take the money and run...