Other Insurer Upping Value for Under Insured Claim?

[bmw tuning]

So my mom was hit by another woman who ran a red light, other woman was sited for careless and found at fault. Moms car was totaled, after dealing w/ totals before and being a car dealer I expected a offer around $22k for the car and the actual value to be around 24-25k. Today the come back w/ a value of $26,150 which is really high, but hey great right? No because the person only had $25k in coverage so since they can't pay for the whole car they say we have to make a claim w/ our insurance to cover the rest. They won't give the $25k limit our only option is take about $18k and retain the salvage car or make a claim against our insurance... Its seems awfully funny the only time Ive ever go an offer I was happy w/ from an insurance co. is this time under these circumstances. The value they gave is a couple grand higher than any Blue book or any comparables in the area. So is this a normal practice for insurers to bump the amount up when its close to limit their party has to make the other insurance help out?

 

[djs]

Not sure what you are thinking here....

If the value was in the $25K range and you add in taxes, registration, document fees, whateverthedealeradds fees, etc, you are probably in the $26K range. They won't overpay, but they try not to underpay.

They should pay the policy limit, but, understand if there is other damage to other cars or other property, then that is also paid out of the limit.

File the claim with your carrier. Not sure what state you are in, it normally wouldn't impact your rates (other driver at fault, other insurance company paid to policy limits), but you might check with your agent first.

Dan

 

[Josh]

Plus one on what Dan said, especially on the point of them paying up to the $25k range. They should pay $25k (and if you want to leave it at that, great) and let their insured be liable for the extra $1,150. At that point and based on what you're saying it sounds like you wouldn't have it out for the other driver (which probably should up their limits) so you might call it a day, but your insurance might give you that and/or the other guy might actually come up with it.

One thing that might make the other carrier happy would be for you to agree to settle in the amount of the $25k. That means their insured was protected, they only paid out the max of the policy, and if you tink $25k was a fair amount then you're in a good spot too.

Definitely curious to hear the rest of this one.

 

[NCAgent]

This is why you shouldn't have minimum limits for your auto insurance. If someone else is at-fault and they have lower limits, your insurance can typically come in and take up the difference (or at least a good chunk of it). Remember, THEIR bodily injury and property damage is what restores YOU, NOT THEM.

Think about this: if that person had higher limits then you wouldn't have to go through your insurance. What if you couldn't file under your insurance, or it wasn't enough? Then you sue the ass off of him, and probably wouldn't get much, if anything, but put a lien against him. Put yourself in his spot, or imagine there being bodily injury during this accident, and you can see the value in having higher limits. People have had ruined credit and other messes over simple matters, all for saving 10 bucks a month.

Hopefully this makes you a believer in being above the minimum limits, preferably 100/300/100 or 250/500/100 with an umbrella policy. My state has some of the highest minimums at 30/60/25 (Alaska I believe is 50/100/25???) and that is not NEARLY enough.

 

[bmw tuning]

They won't let us take $25k. They said because they can't pay for the whole car they can't retain it for salvage value. Our only option was take the $18k and keep the car that has salvage value of about $8k. Seems awfully fishy to me. We already have a claim open w/ our insurer because of hospital bills and a rental, so were gonna claim the extra on the car too. It just is really odd the only time we've ever got an appraisal we feel is even more than fair this is the situation. We don't have sales tax on cars here so that doesn't equate. The blue books all put this car at $22k-24 and comparables about the same, so how does an insurance co. all of the sudden come up with an amount that puts us in this situation? Ive always, always had to fight to get what i thought was fair market value and then this happens....

 

[Josh]

The carrier is usually going to add tax and tags to the cost, so if the comparables are at $24k, then you ad even 1% sales tax that brings you over the $25k mark.

Their insurance should be covering the hospital bills and rental too.

 

[bmw tuning]

Ya so now we have to deal w/ our insurer on the value of the car and then they go after the other insurance. who wants to bet our insurance doesn't come up w/ the $26k value? I can almost guarantee it will magically start with an offer around $23-24 from ours.

 

[Josh]

Ya so now we have to deal w/ our insurer on the value of the car and then they go after the other insurance. who wants to bet our insurance doesn't come up w/ the $26k value? I can almost guarantee it will magically start with an offer around $23-24 from ours.

They might both use the same model.

 

[bmw tuning]

well farmers is the first co. and they use ccc and second co. is state farm and from my previous dealings w/ them i can almost guarantee they don't. I guess whatevers gonna happen is gonna happen. Just tired of dealing w/ low balling insurers. Just went through a 5 month battle on my own car w/ the co. trying to get out of paying every way they could only to lose miserably. I know theres alot of fraud and such out there but when they treat every customer like the enemy its just sad...

 

[Insurance-Guy]

I think if you told them you would settle for 25k, they would close the property damage portion. Your company is only going to pay under the underinsured motorist portion and they will only pay the difference. So the other company will still pay the 25k. If you want to take $25,000 just tell the adjuster you will settle for it and see what happens.