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Question: A car rear ended me last week. Although my car has 100,000
miles, it is in excellent condition, and I'm afraid that the insurance
company will decide it is a total wreck. What are my rights for getting
an adequate settlement so I can replace the car?
Answer: First, be sure and check with your doctor about your physical
condition. If you have any problems related to the rear end crash, the
medical coverage portion of automobile insurance will cover your
expenses.
Next, do everything you can to be prepared to negotiate a fair
statement.
When an insurance appraiser evaluates the damages to your car, he or
she will decide how much it will cost to repair the car. This repair
appraisal is compared to the "blue book" value of your car. The blue
book value is the fair market value or retail value of the vehicle. In
other words, how much would you have to pay a car dealer or individual
for a car as similar as possible to yours. If the cost of repairing
your car exceeds the fair market value, the car is considered totaled.
You then receive the fair market value.
The problem for older vehicles is that it may be difficult to find a
car similar to yours. This is where you need to get as much information
you can in order to negotiate a settlement that will help you get a car
as close as possible to the one you have.
In her book "Making the Most of Money," Jane Bryant Quinn gives the
following advice to Consumers so they can negotiate the best possible
settlement.
If an accident is caused by someone other than you, your insurance
company will negotiate with the other person's insurance company and
collect your property damage claim in full. You are entitled to a
refund for the deductible you paid. Don't forget to ask for it.
The insurance company should pay for a rental car while yours is being
fixed. Keep receipts to prove costs to the insurance company.
Don't automatically sign a piece of paper accepting the insurer's
estimate as the full cost of the repair. Get a second opinion from a
mechanic that you trust. There is an arbitration clause in many
automobile insurance contracts, use it if more work is needed and the
claims adjuster balks.
If your car is determined to be totaled, and if you think that the fair
market value offered by the insurer is too low, get more information.
Get signed statements from automobile dealers that state the value of
your car. Look in the classified section of the newspaper for prices of
cars similar to yours. Use this information to negotiate a fairer
settlement for you. Always get the information you need to support your
case. If you don't ask, you'll never get a better settlement.
If you still can't work things out, put on your Consumer advocate hat.
Complain to your insurance agent and ask for more help. Send a letter
to the state insurance commissioner stating what happened and why you
feel you deserve a better settlement. Attach copies of supporting
documents. Send a copy of this letter to the president of the other
person's insurance company.
The gist of all of this, is to get all of the information you can about
the fair market value of your car. Negotiate a fair and favorable
amount for you.
For more information, contact your local
Colorado State University Extension office.
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