Not at Fault Car Insurance Claim Accident, Total Loss

Dec 27, 2015

  1. Sd3757
    Offline

    Sd3757 New Member

    Posts:
    2
    Likes Received:
    0
    So i was recently hit,my front end of my 2003 chevy impala which is currently financed and i owe 2000 dollars on the car. The adjuster will be coming out tomorrow 12/28/15 to check it out. I went through the at fault drivers insurance which is Progressive.

    The book value or ACV of the car according to multiple websites is right around $2100

    I went and got an estimate on my own and before the mechanic look under the car, based on body damage and my tire alone, the estimate was for $1900. So there is a strong possibility he will consider it a total loss.

    The way i see it is i have two options:
    1. Car is repairable, get it repaired
    2. Car is totaled, insurance pays my remaining loan for me which almost exactly the book value.

    If number 2 is the case, will the insurance company pay out my loan and leave me without a car? Or will they pay my loan, take my car, and give me a little extra money to at least put a down payment on something else?

    I just dont know how that would be fair that they pay my book value and leave me without a car.

    Any advice or answers would be greatly appreciated
     
    Sd3757, Dec 27, 2015
    #1
  2. djs
    Offline

    djs Super Moderator Moderator

    Posts:
    6,679
    Likes Received:
    72
    State:
    California
    For a total loss, and based on your numbers, it will be, they should pay fair market value for your car. They then add taxes, title, registration, etc to that value.

    Insurers tend not to use sites like kbb.com or others to determine value. On a car that is 12 years old though, this is a pretty reasonable estimate to use. They do make adjustments for your car based on its pre-accident condition. If it has bald tires, they will take some off. If it has an upgraded stereo, they might add a bit. If the seats are worn, take a bit off, etc.

    You can usually opt to keep the car if you want. In this case, they deduct the salvage value of the car from the settlement and then register the car with the DMV so it will be issued a salvage title. This is rarely worth the hassle on older cars.

    For payment, they will pay your car loan first and then send you whatever is left over. If it doesn't fully cover the car, then the bank will send you a bill for the balance.

    If your numbers are correct, then the insurance company will pay off your current car and then send you a check for $300-400, depending on the current condition of the car and how much taxes and fees they add in. The actual numbers are likely to be considerably different though.

    Dan
     
    djs, Dec 27, 2015
    #2
  3. Sd3757
    Offline

    Sd3757 New Member

    Posts:
    2
    Likes Received:
    0
    Thanks for response...so my biggest question here is, say they total it and give me book value..and that just pays off my remaining loan, do they care at all that im left car-less or will they pay out my bank for my loan and because i am left without a car, will they give me more money to at least find a new vehicle.

    So basically, is there room to negotiate with an adjuster about giving me more than just my book value because i will be without a car?

    So say in my situation book value is 2000 and my remainjng loan is $2000....the insurance company (Progressive) pays out my loan, but i still have no car and personally wouldnt be satisfoed without receiving around $3,000, so that pays out my bank loan and gives me enough money to at least put a down payment on something else.

    Im just worried that an adjusters eatimate is gonna be so close to my cars book value.
     
    Sd3757, Dec 27, 2015
    #3
  4. Josh
    Offline

    Josh Retired Agent, Current List Broker

    Posts:
    11,776
    Likes Received:
    62
    State:
    Virginia
    In a word, no. They're not a foundation dedicated to making sure that people have cars, it's an insurance company. They do care about repairing your vehicle to pre-accident condition or making you whole by paying you what it was worth and that's exactly what they are required by law to do.

    In simple numbers, if the car was worth $2,000, then they would pay you the $2,000. The loan is irrelevant to the amount of the claim.

    ----------

    If they're doing their job right, it should represent the cost to replace that vehicle with one of similar kind and quality. If it's a stock 2003 Impala with 100k miles they claim should be paid for what the fair market value is on a 2003 Impala with 100k miles.
     
    Josh, Dec 28, 2015
    #4
  5. djs
    Offline

    djs Super Moderator Moderator

    Posts:
    6,679
    Likes Received:
    72
    State:
    California
    They will pay fair market value for the car. It is not up to the insurance company to worry about whether you have a car or not, or even if this pays off the loan or not.

    They pay fair market value for the car. Period. No concerns about you needing to buy another car.

    It sounds cold, but it really isn't. They also don't deduct anything if its the other way around, perhaps you owned the car, heck, they don't have to give so much money.... doesn't work that way either.

    You really won't know what is up till you get the settlement offer from the insurance company.

    You can also talk to the bank and see if they will let you roll the loan into another car. This works if you have a decent loan and to be honest, a lot of banks will pay off the existing loan and then offer you a new one, if you have been making your payments on time.

    Dan
     
    djs, Dec 28, 2015
    #5
Loading...