car totaled -- insurance questions

[WOODY]

I totaled my car yesterday :frown: I was wondering if anyone has experience they could provide with dealing with the insurance company. The car has approx $15,000 in mods bbsc, aftercooler, wideband ,wheels etc...
my questions are:

1. how does the insurance company determine value? blue book? retail, wholesale or private party sale? possibly market value? and if so how is that determined?

2. do they reimburse for mods? would the s/c mod become an issue for coverage and perhaps a way for them to deny coverage?

3. how is the price for car buyback determined (I want the motor/tranny)

4. Should I be allowed to swap out my wheels (assuming they are salvagable) and remove items such as AFR gauge and nav etc?

thanks for any and all input

woody

 

[D'Ecosse]

Can't offer any insurance advice with any authority but just wanted to say sorry to hear that.
Hope it all works out for you.

 

[Edgemts]

I totaled my car yesterday :frown: I was wondering if anyone has experience they could provide with dealing with the insurance company. The car has approx $15,000 in mods bbsc, aftercooler, wideband ,wheels etc...
my questions are:

1. how does the insurance company determine value? blue book? retail, wholesale or private party sale? possibly market value? and if so how is that determined?

It partially depends on your Coverage, you can get replacement value or declared value coverage, but you can also state your case when they come up with a number and show them why its worth more.

2. do they reimburse for mods? would the s/c mod become an issue for coverage and perhaps a way for them to deny coverage?

You will at best get pennies on the dollar and most of the time performance mods are not covered at all, usually accessories only.

3. how is the price for car buyback determined (I want the motor/tranny)

2 things, keep control of the car, do not let them tow it or take it anywhere, as soon as they do there inspection, tow the car home, its still yours untill they pay you for it. DO NOT give anyone your title.
Once they do the inspection, take all your parts off, once they call to offer you a settlement you can discuss first the value of your car, do not say it more valuable because of the mods or money you put into it unless you have reciepts for accessories that they cover. once you settle on a value they will tell you what the buy back will be and deduct it out of the check.
Buyback is determined by a percentage/ salvage value. Just buy it back.

4. Should I be allowed to swap out my wheels (assuming they are salvagable) and remove items such as AFR gauge and nav etc?

Yes its your car, these items will not affect there "salvage value".
again you have a double edged sword, if you push for all this high value because of accessories your buy back will also be slightly higher, so tread lightly. If anyone says anything about the parts, wheels etc, just make it clear that you will be buying it back and you have no intention of letting your pride and joy go.

 

[Dave Hardy]

If you want to let them take the shell, then start removing the parts you want to keep now. Wheel swap, gauges and Nav pods will go unnoticed. They would probably notice a missing engine. If you want to keep the drivetrain then buy the car back and part it out. Buy back price is negotiable. Like any car negotiation, let them throw out the first price. They aren't interested in having a junk car, so if they can give it back to you and pay out a bit less, they will want to. If you're going to get the car back, I wouldn't expect any adjustment for mods that are not damaged. If they are taking the car then you may be able to get pro-rated prices for the mods.

Any chance on rebuilding it? Got any pics? What kind of wreck was it? Are you OK?

 

[nsxtasy]

I totaled my car yesterday

Sorry to hear it. I hope no one was hurt. The car can be replaced.

1. how does the insurance company determine value? blue book? retail, wholesale or private party sale? possibly market value? and if so how is that determined?

Aside from the mods (see below), the insurance company should reimburse for the market value of the car itself. It should be the price for which you can buy another, bone stock car of the same or similar year, mileage, condition, etc. So it should be based on retail or private party sale, NOT wholesale. They should also add sales tax in performing their calculation.

Note that I said "should". If you feel that their first offer is inadequate, you can negotiate with them. The best way you can negotiate is to provide ad listings for comparable cars, to show what it would cost to buy another one. (And take into account a reasonable discount from the asking price shown in the ad, because they know as well as we do that most cars for sale can be bought for somewhat less than the asking prices shown in the ads.) You can also provide a written opinion by a knowledgeable expert regarding the value of your car. If they can't provide the same kind of back-up for their offer, they should be willing to raise it. (Again, there's that word.)

Different companies vary in terms of the generosity of their settlements. Some will give you an acceptable offer to begin with. (It's good customer service on their part.) Some won't. This is why some folks purposely choose a company with better claims settlement experience. (You can see ratings by JDPower, including claims handling satisfaction, here.) With some, you will have to fight tooth and nail to get a fair offer; this is why I dropped my coverage with the "good hands" people years ago, when I had a claim and found that all I got was one carefully selected finger.

do they reimburse for mods?

Usually yes, if you have receipts for the purchase of those mods. And they do so on a depreciated basis, and not for installation. But they should adjust their settlement upward to reflect the mods. Read details in the FAQ under Ownership - Insurance.

would the s/c mod become an issue for coverage and perhaps a way for them to deny coverage?

No.

 

[WOODY]

thanks for the insights, but what do I use as leverage to negotiate the values? lets say its worth 45, they say 35. is the threat of securing legal representation my only bargaining chip?

 

[comquat1]

thanks for the insights, but what do I use as leverage to negotiate the values? lets say its worth 45, they say 35. is the threat of securing legal representation my only bargaining chip?

I'd check out autotrader and prime and find cars as similar as possible to your car (i.e. year, miles, mods). Also, make sure you have your receipts in order for the mods you currently have on your car. I think those may be your biggests pieces of evidence, with a third option consulting an appraiser and forth going the legal route.

 

[nsxtasy]

I'd check out autotrader and prime and find cars as similar as possible to your car (i.e. year, miles, mods). Also, make sure you have your receipts in order for the mods you currently have on your car. I think those may be your biggests pieces of evidence, with a third option consulting an appraiser and forth going the legal route.

Excellent advice, Doug.

If they say your car is worth $35K and you think it's worth more, ask them for a breakdown of how much is for the stock car and how much they're adding for the mods. You will need different arguments for each figure.

As Doug notes, let's say they're offering you $30K for the stock car. If you show them 10 listings in Autotrader for a similar year and mileage, and asking prices are all $40K or higher, then that's great documentation for a market value (stock) of $36-38K (which assumes that the asking price can be negotiated downward by 5-10 percent, which is realistic).

You can also refer to the pricing chart on NSXprime for a reference to the value of the stock car.

If they say they're giving you $5K for the mods and you think they're worth $15K, if you can provide them with receipts that show that the parts originally cost $25K and you bought them within the previous year, then that's great documentation for an additional value of $15-20K. The older they are, though, the greater you will have to discount them for depreciation.

If they won't break the figure down for you, you can still use both these arguments to justify your claim; just add the figures together.

THEY should be able to justify their figures the exact same way you justify yours. If they offer $35K, they should be able to show you examples where you can buy a similar car for $35K.

 

[drew]

You can kick your car loose from the impound lot and have it transported to a location of your choice for their normal charges. You will get reimbursed for the fees (except for transportation, if they catch it)

Depending on your tactics:
Start taking non-stock parts off, prior to the adjustor arriving.
OR
Wait for adjuster to arrive and deteremine value.

They will later offer you a payout. When you finally agree, they will the discuss the disposition of your car.

If you buy the car back: do as you like.

If you decide not to buy the car and they don't give you a value for your aftermarket parts....you can take them off and give them their stock car that they paid for. Please don't take parts that the insurance has paid for: it can land you in hot water.

I've gone to the impound lot and removed my goodies that I was not going to claim.

They are more than happy to remove the car from your premises as they don't pay daily storage fees on it.

Drew

 

[zahntech]

Be ready to play hardball cuz they most likely will ..sorry to hear about your loss ,,hope everybody is ok ..JZ

 

[mikec]

I'm not so sure that they wouldn't deny coverage if they found out you supercharged it.

I have Erie Insurance, and they specifically asked if I had any "power enhancing" modifications done to the such such as supercharging or turbocharging. I had to sign a form stating that the car's engine is stock.

They didn't say they wouldn't cover a modified car, but they asked the question, and I can only wonder why.

 

[MiamieNeSeX]

I feel your pain as I am on the final turn of the rollercoaster ride you are starting. Definatly get your car to your house or shop. Before you start stripping the car of the aftermarket parts, get the offer from your ins company for both the payout and the buyback amount(both of whiich are negotiable). Be patient and remember that the last thing most insurance companies want is to keep your car, its all numbers to them.


Good luck
Armando

 

[WOODY]

the appraiser is aware of the supercharger, I just walked him through all of the mods to the car. He is the one who determines if the car will be totaled. if so, it goes to another company . He stated that the value of the mods will increase the estimated cost of repair and value of the payoff in the probable totaling of the car. It seems impossible to me that coverage could be denied. I never stated that the car would be kept stock. if that was the case anyone who added headers to gain horsepower or changed performance in any way would be denied coverage. I have not seen any language to indicate this.

armando, i know your situation was different(theft) but was the s/c ever an issue?

 

[comquat1]

Can you tell if the frame was tagged by the cars that hit you? Pray that it is if you want it to be totaled. Also, how familiar was the appraiser with this car? Did it seem evident that he knew what to look for with regards to how expensive it would be to fix?

 

[polar]

Sorry about your lost.
I had to deal with the insurance company for my last car, which was totaled due to a fire. (someone drop their bicycle on the freeway, cought under my car and started the fire.)
I think it would be the best to get a lawyer.
For my case I didn't hire a lawyer, not that I didn't want to, but no lawyers would take my case (probably because i'm not phyically injured).
The insurance company sent an adjustor to estimate how much the car worth. And I had a tough time dealing with the adjustor because I had 11k of mods with receipts, at the beginning they refuse to pay any of them, because according to them, aftermarket parts lower the value of the car. Which was probably true depends on how you look at it (An original plymouth superbird probably worth more the one that has mods on it). But mine was just an Audi S4 and some of the mods' retail value actually higher than the original parts, ie. big brakes. not to mention that the accident wasn't even my fault. At the end I only got around 2500 for all the mods plus the value of the car.
Just like zahntech mentioned. be ready to play hard ball with them.

 

[MiamieNeSeX]

If you are covered, the liability is not an issue. The only issues I had was negotiating the price of the car and then the buy back
.


Armando

 

[WOODY]

he states he is a car buff, He "seems" a little too nice. I hope he is is not "working" me for some purpose I am as yet unaware of.

 

[WOODY]

it is a game, trying to get any value for the mods will ultimately effect the buyback price. I have no idea what to expect the buyback to be. I have read 5-7% of the totalled value, if the car is worth 45,000 that would be ~10,000. I hope to negotiate low buyback in exchange for limited reimbursement for mods (most are intact as the engine bay is ok)

 

[4AU4LIFE]

Woody, I can't offer any advice either. :frown:
Just wanted to say I too was sorry that happened. You haven't mentioned so I assume you and anybody else involved are alright. I know you have been working with getting your car running and looking good for a long time too. Hope it works out for you. :smile:

 

[MiamieNeSeX]

If you are planning on buying it back its is to your advantage to have your adjuster diregard the mods. Buy back is based on value of the car. If the repair cost exceeds 75% of the vehicle cost they will offer the buy back at 20to 25%.

What year is the car?


Armando

 

[WOODY]

it is a 97. i expect to get 45-50 based on the condition/mileage of the vehicle without regard to the mods. if they give pennies on the dollar for the mods, I have the right to remove them instead of taking their dollar settlement for the mods correct? IE take the stock vehicle settlement and remove all my mods

 

[WOODY]

If the repair cost exceeds 75% of the vehicle cost they will offer the buy back at 20to 25%.


20-25% of the value? ouch! I was hoping to get it for 5-8 grand. I understand it is varied based on amount of damage, but to expect full value for every non damaged piece of the car seems absurd. Can I buy back just the engine /tranny?

 

[WOODY]

the average price of 97 nsx on autotrader the last 4 days is 45-48,000

 

[drew]

I have the right to remove them instead of taking their dollar settlement for the mods correct?

I'm not a lawyer, but invoking a "right" might lead you into a bit of pain if they push back. They can allege tampering and not abiding by their agreement and deny coverage. Then you'll be out the expense of trying to prove you did nothing improper---always an uphill battle.

Step 1: get the car to your premises. NOW! Make the arangements (now!) and get the car under your full control by this Sunday at the latest.
Step 2: decide if they cover mods, if they do not or you do not want them to bolster the value of the car: remove them and make the car appear as stock as possible.
Step 3: After value is deteremined: decide if you want to purchase the salvage. If not have them pick it up.

In any event: Get cracking!

Drew

 

[drew]

Can I buy back just the engine/tranny?

Sorry, it is ALL or nothing.

Yes, the sell price is the value as a salvaged vehicle. A car valued at $100,000 prior to collision can have the plain value of scrap metal (~$300) if properly balled up. An easy roll over of the same car might be worth $30K.

So two values have to be set: Pre-collision and post-collision. They are relational, but not strongly. They will sell the car back to you for what they think they can get for it at auction (and yes, that means adding up the value of all the good parts. Which is why you might want to remove the mods prior to the adjustor arriving)

Drew