Auto Insurance Company Lowballing me??? What do I do?

Question

I have a 2001 porsche and this lady just tboned me going through a red light. Now My insurance company wants to offer me about 5000 dollars less then what I can replace it for. I sent them 10 ads in the area close to my car to show them, and they in turn had me appraised by an independent agency. This agency, BIG BLOCK, came back with a dozen examples that all had more miles then mine, and adjusted me .16 cents a mile. After doing depreciation calculations on their examples, the average dep per mile was .60 cents per mile!!!! This changes their evaluation by about 7-8000 dollars overall.
Its been two weeks since they totaled my car. What should I do if they keep trying to low ball me?

Obviously, I just want to replace the car and cant for the amount theyre offering me. I know what the car is worth and the insurance company is trying to get me to look at cars in places like new mexico and texas in order to bring the price down. Where I live, the price for these cars is much higher. There isnt a single car in a 3-400 mile radius like mine even within 5000 dollars of what they are offering. To the person that says am I sure I know whats it worth, Ive done more research then you so are you sure thats not what its worth?

Also, if you can address the .16 per mile depreciation for a 2001 porsche my figures come up with more like .60 per mile

Answer 1

You can hire your own appraiser and submit that appraisal.

If they reject that appraisal, you probably have to go to arbitration, as stated in your insurance policy.

The appraisal and the arbitration will probably cost you an additional $450--$500.

You and your appraiser have the right to reject their referee and you can nominate your own referees. If you and the insurance company can't agree on a referee who is impartial, the court will appoint a referee for you both.

Once in arbitration , it is a crap shoot. You might get more or might get less.

You have to understand that the insurance industry is rigged against you, from the policy through the arbitration process. And there is really no appeal against lowballing. It is illegal and there is no one to punish them for it.

Welcome to laissez-faire capitalism.

If I were you, I'd see if I could get within $2,500 of what you want by negotiating. Perhaps your own appraisal will accomplish this.

HOWEVER---while the insurance industry might screw you, you still have re-course in the courts, since you were hit by a third party, to which you never contracted. You don't have to accept the arbitration ruling, as you would if you caused the accident.

You can sue the other insurance company for bad faith, whereas you cannot usually sue your own.

Answer 2

I recommend you to try this internet site where you can get quotes from the best companies: http://INSUREQUOTE.INFO/index.html?src=2YAgwpggRM55

RE :Auto Insurance Company Lowballing me??? What do I do?
I have a 2001 porsche and this lady just tboned me going through a red light. Now My insurance company wants to offer me about 5000 dollars less then what I can replace it for. I sent them 10 ads in the area close to my car to show them, and they in turn had me appraised by an independent agency. This agency, BIG BLOCK, came back with a dozen examples that all had more miles then mine, and adjusted me .16 cents a mile. After doing depreciation calculations on their examples, the average dep per mile was .60 cents per mile!!!! This changes their evaluation by about 7-8000 dollars overall.
Its been two weeks since they totaled my car. What should I do if they keep trying to low ball me?
Update: Obviously, I just want to replace the car and cant for the amount theyre offering me. I know what the car is worth and the insurance company is trying to get me to look at cars in places like new mexico and texas in order to bring the price down. Where I live, the price for these cars is much higher. There isnt a single car in a 3-400 mile radius like mine even within 5000 dollars of what they are offering. To the person that says am I sure I know whats it worth, Ive done more research then you so are you sure thats not what its worth?
Update 2: Also, if you can address the .16 per mile depreciation for a 2001 porsche my figures come up with more like .60 per mile
Follow 9 answers

Answer 3

The insurance company does not owe the replacement cost of your vehicle. They owe the actual cash value (avc). That means, what you could have sold the vehicle for - just prior to the accident given the vehicles options, mileage and condition.

The ads you submitted are fine - but no one pays the advertised price - what they owe you - is not the advertised price but what the vehicle actually sells for. I could run an ad in the paper trying to sell my 2006 vehicle for 1 million dollars - but no one would pay that for it - it's value is how much someone would actually write the check for - for that specific vehicle.

You may want to check your policy. Most policies have an appraisal provision in them. If yours does, here's how it usually works: you hire a competent appraiser, the insurance company hires an appraiser (they will probably use the one they have already hired -Big Block). The 2 appraisers pick a 3rd appraiser. The 3 appraisers determine the value of the vehicle. A decision by any 2 of the 3 wins. You pay for your appraiser - and your insurance company pays for their appraiser. You both split the cost of the 3rd. The appraisers can not rule that the insurance company pay your appraisal costs - even if they agree with your value - you still have to pay your appraisal costs.

Someone above mentioned lawyer - no lawyer is going to take a property damage only case. A lawyer's fee is 1/3 of the settlement - in a pd case, all the lawyer could get is the value of the car and then he would get 1/3 of that. If you were going to do that - go ahead and take the offer that has been extended.

In addition - most policies say that you can not take legal action unless you have met all conditions in your policy. The appraisal provision is one of those conditions. It can be invoked by you or by the insurance company.


Here's a cheap option - You may want to talk to your agent and see if he can help you out. The agent can't tell the adjuster what to do or how much to settle for - but he can touch base with the adjuster and see what's going on and how the offer was determined.

Answer 4

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RE:Auto Insurance Company Lowballing me??? What do I do?

Answer 5

Oh lord, whatever. That person above me really got on my last nerve. I am a claims adjuster and i would NEVER try to cheat anyone out of what they are owed. Thats ridiculous. If you saw how my company worked youd see it was nothing like that.

Unfortunately, our job is not to paid you OVER what you are owed either. Its amazing how people try to take advantage of bad situations.

Sounds like they are doing everything right here- they even got an independent appraiser involved that has no ties with any party... are you sure your "baby" isnt worth more to you emotionally then it really is in the market?

I see people everyday who think there car is worth tons more then it really is.. and its all in their head.

Ever step has been done here.. there isnt much more to do.. you can either accept the offer.. or not. Sure, you could always try to "sue" them or something.. but it sounds like theyve done their research- your not going to have much luck.

As for the lawyer... no lawyer will even take a property damage case b/c they know they cant get any money. Even if they did take it.. youd end up losing money. They cant magically make your car worth more and if they could.. theyd charge more then they got you.

Sorry dude.. sounds like your outta luck

Answer 6

If your insurance company is one of the major insurers in the U.S. then it's highly unlikely they are 'trying' to low-ball you. It's to no advantage whatsoever NOT to pay full market value to their poilicyholders. Remember, a vehicle is worth only what someone will pay for it, not what you WANT for it.

Answer 7

Get your insurance company involved. Keep up the pressure on them and tell them you won't settle until you get a fair value for your car. They will want to settle quickly and it will take some time to wear them down.

Answer 8

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Answer 9

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Answer 10

Insurance companies always try to cheat you out of what you deserve and what is rightfully owed to you by your policy. They try to take advantage of you. They try to get you to take a lower amount to get you off their back. I work for lawyers and I know how they operate. You should get an attorney to help you to make sure you get your full coverage amount from your insurance carrier. Your policy states what is owed to you in case of an accident, but its in such legal and complicated jargon, its hard to understand. Get someone to help you!!!

AND DONT SIGN ANYTHING!