Car Total Loss - Insurance wants car for auction - No Money Yet

[Mark Latham]

Hello,

Last Monday I hit a buck doing 50
Car was towed to approved body shop
Auto Insurance (MetLife) Started the estimating process
2002 Honda CRV 130k miles.
The standard agent asked standard questions hen stated Friday I'd be getting a Fed-Ex Envelope with a Total Loss document.
I went to yard and took everything out and they stated "do not let them take it until you get the amount they are going to pay you and you approve. Yard will hold it for no cost. Insurance wants e to release it now.
Also, MetLife does NOT have the estimate from the shop - that I find strange. 6,700 damage.
What should I do? Release or wait? I'm researching values for it.

 

[adjusterjack]

I went to yard and took everything out and they stated "do not let them take it until you get the amount they are going to pay you and you approve. Yard will hold it for no cost.

That's BS.

What should I do? Release or wait?

Release it now. Otherwise you'll end up paying the storage charges.

Your own insurance company has a contractual obligation to pay you for your car less your deductible. A 17 year old Honda is not worth much so you probably need to resign yourself to the fact that there won't much of an argument available as to value.

Not releasing the car isn't going to give you any leverage, if that's what you think.

If you don't like what your insurance company offers you can invoke the Appraisal provision of your policy:

APPRAISAL
A. If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will select a competent and impartial appraiser. The two appraisers will select an umpire. The appraisers will state separately the actual cash value and the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will be binding. Each party will:
1. Pay its chosen appraiser; and
2. Bear the expenses of the appraisal and umpire equally.
B. We do not waive any of our rights under this policy by agreeing to an appraisal.

By the way, you get your money after you comply with your Duties in the Event of a Loss.

 

[Mark Latham]

You are most kind to reply and clear things up.
It's a small town and the body shop said to hold it until I find out the amount.
They have to tow it 7.5 hours to Copart for auction - that's each way from Denver to Durango on a good day. I got the paperwork today and will get started on it and get the title.
I also had not heard from the Total Loss Group ar MetLife and no value estimate.

Thank you.

Mark

 

[adjusterjack]

I found three examples of 2002 Honda CRVs in AZ on Craigslist:

181,000 miles for $4000
162,500 miles for $3900
168,000 miles for $2800

Figure selling price is typically 10% to 15% less than asking price. I haven't checked price guides yet (KBB, Edmunds, NADA). you can do that online. Most insurance companies use CCC for total loss evaluations. CCC has its detractors but, then, nobody is ever really happy with insurance settlements and everybody (including me) thinks their car is worth more than it is.

Insurance Carriers - CCC

With $6700 in estimated repair costs it's certainly a total loss no matter how you look at at.

Claim reps get 5 to 10 new claims a day and often have 100 pending in a month's time. If the shop emailed it or faxed it (ask them), it's in a queue moving slowly but surely up to the top of the list for handling and the claim rep might not see it for a few days.

As I wrote earlier, if you aren't happy with the offer there are things you might be able to do. You'll just have to wait and see.

 

[Mark Latham]

Thank you again.
This helps a lot and I will get this going.
Weather looks good this week and borrowing a car.
Will rent if I need to - Got a decent $25/day with tax with Enterprise.
Locally the car shop I have mine at had 6 cars with deer hits last week.
We have large amounts of them around and their goofy at this time of the year.

I truly appreciate the guidance

Mark.

 

[StarterAgentKG]

You are most kind to reply and clear things up.
It's a small town and the body shop said to hold it until I find out the amount.
They have to tow it 7.5 hours to Copart for auction - that's each way from Denver to Durango on a good day. I got the paperwork today and will get started on it and get the title.
I also had not heard from the Total Loss Group ar MetLife and no value estimate.

Thank you.

Mark

When I totalled my car, the agent called me told me it was deamed a total loss gave me the value over the phone and told me to immediatly go to the tow yard and get the plates off the car and call them as soon as I was done.

Dont forget the tow yard is hoping that your insurance company will pay the storage fees, so check if those are covered.

 

[Caleb S]

Mark,

It sounds like you are handling this correctly to start with.
I was recently in a negotiation battle with an insurance company and learned to NEVER accept their first settlement offer. Do your own homework by shopping around for vehicles of like kind and quality. Always record your own phone calls (even if they seem like simple calls). Anything you say will be used as a way to denying your claims or lowering your settlement amount.
Insurance companies are protecting their bottom line and have you down to an exact dollar amount. If they can pay less than that dollar amount (amount you have paid to them in premiums), they will. Always ask for a copy of the CL-30 which will show you what your vehicle's ACV (actual cash value) is and what exactly your insurance firm will be paying you. Also, ask for a copy of your CCC One report. This report shows how your adjuster "appraised" your vehicle.

Settling your claim is hard work, but you are saving money by not hiring an attorney. My Insurance company originally offered $12,900 for a Toyota Corolla (2017) and after five negotiations, the insurance company has raised their offer to $15,650.17.

I'm happy to answer more detailed questions, so please PM me and I will try my best to help.

 

[adjusterjack]

Always record your own phone calls

Happens to be legal in Colorado and North Carolina but anybody else reading this needs to check state laws to determine if recording is a crime or not.

 

[VolAgent]

You hit a deer going 50 in a 17 year old vehicle and it had to be towed away. For it not to be totaled would be the exception. The estimate is just a formality at this point. And yes, the shop is looking to get as many days of storage as possible. And yes, the insurance company will pay for it, as long as you don't drag it out. Go ahead and fill out the forms and get them back as soon as you can. Also, assuming your policy included rental, they will pay for your rental up until it is settled (and usually a few days after if you ask nicely, so you can get a new vehicle) or you hit the policy limit, whichever comes first.

Were I you, I'd go ahead and start thinking about the replacement vehicle. New, used, what type of vehicle, where am I buying it, etc. The last time I had a vehicle totaled, I made the mistake of not thinking of its replacement in advance. I got left buying a car over the weekend so I could turn in the rental on Monday.

 

[djs]

Yeah, what others have said. Watch storage costs! Seriously, you would be amazed how fast those "store it for free" charges add up. I mean really add up. You'll end up paying those if you don't let them move the car to their lot.

As a side note, they don't tow a car for 7.5 hours, they put it on a truck with several other cars and ship it. More likely though, they will use the co-part in Denver, why go to Durango? Or are you in Durango?