Posted: 6/5/2012 1:59:04 PM EDT
| Stupid insurance just did their inspection of our cars and came to the conclusion that both our 2003 Lincoln LS and 2002 Continental Collector Edition have more damage from the hail than the cars are worth. Keep in mind both cars, especially the continental, were in amazing condition for their age. So now the insurance is going to estimate the value and write them off which is going to be much less than the real value of the cars because of their condition pre-hail. We get to keep the cars but we will have to pay for repairs to windows and plastics out of that money which will leave us with not a lot of cash and two formally awesome cars covered in huge dents with no real resale value. |
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We got the cars because they had been garage kept and meticulously cared for and despite being older they were in like new condition. The plan was to drive them until we decided to upgrade and since the condition of the cars was so good they held their maximum trade in value. Now they have almost no value other than being mechanically great. They haven't told us yet how much the payoff will be but they said it will be considerably less than what the repair cost would be.
I agree...I think this is going to get nasty...maybe we'll be a lawyer. It may seem arrogant but I really don't want to drive around a beat up car no matter how well it runs. Gonna have to consider seeking replacement transportation.... |
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Ill lay it out for ya.
1 - You pay them for a service. That service is to help pay associated costs past your deductible for repairs or replacement of your insured asset. 2 - Fair market value is accessed for what it will cost for a duplicated auto to be replaced in and around your zip code. 3 - They are on the hook until you are happy unless you just take what they will give you. 4 - If you owe more than its worth then you will have to cover the remainder of what you will get as they will only give you the value of what it costs at the date of loss for a replacement in as good condition. 5 - If you threaten a lawyer you better have done your homework in advance and already have a good one on retainer. Dont try to bluff them or you will effectively be transferred to their legal dept and from then on you will be dealing with a lawyer thats gunning for you until you have one of your own to use in your mediation. Example Ted buys a honda civic. Its a new civic and he drive it off the lot NEW. The next day Ted is hit my a truck in his civic. The civics estimated damages total more than 75 % of what a like model civic will cost in his area as his civic was new when owned by the dealership but was used as soon as it was titled to Ted to leave the property. Ted over paid for his civic to the tune of full MSRP + dealer options for a total of 38K. A comparable model is available locally for 24K. Ted did not get gap insurance. Ted is screwed and now responsible for the remainder of the loan. Its up to Ted to try to negotiate a better settlement on his behalf but unless Teds care is much more special than the one they can buy him as a replacement his bargening chip is toast. Ted got used like a cheap whore by the auto salesman. Now Ted knows he screwed up but instead of taking his lesson learned, Ted threatened to lawyer up. Teds insurance cuts Ted short and offers to buy Ted the replacement auto. The problem with the short above is that Ted is a dumbass and did not examine his insurance agreement. The insurance company is in the clear and they know it and can back it up in court and win. Ted is screwed and had better figure out what he is going to do with his newly used car and enjoy his insane loan for a used auto. Example 2 Steve buys a grand national Buick for 15K. It is in very good condition with 50K documented miles. Its older but is in fact a very rare special edition. It is stolen overnight. Steve calls Ted and gets an ear full about how insurance is the devil and how Steve will soon be screwed just like Ted was. Steve calls his insurance and files a claim. A week later Steves car is recovered burned to the frame under the bridge. Now Steves insurance company needs to find the fair market value of Steves ride. So they check the markets and value rags. They can only find one other comparable to his that is for sale for 25K two hours away. Guess what car Steve is offered as a replacement auto? Yep the 10K more grand national the next city away. That or a cash sum that they think Steve will let them go on. Steve wins all the way around in this scenario. Now more to the real point of the exercises here. If your car is not a piece of crap then they owe you another like it, they can not replace it with a lemon and you should not accept less than what it will actually cost to replace your auto that was destroyed. But if you are ignorant and lazy they will rule you and you will end up like Ted above. Dont be blinded by $$ or let your feelings get the best of you. The first one to lose their temper has lost. Hold your own, stick to your guns and do your homework, be nice and explain your findings and have them do the same. Find the common ground and work out a solution that will work for you. Dont ever pay more than you should for a new auto. Do your homework first. Dont try to bluff a company that has more to lose than you do. Read the fine print. They are in the business of making money, not spending it. The will always look after their ass first and if they can catch you bluffing or misleading them they will own your ass in court where you will not only be out the $$ for your car but also legal fees etc. |
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There are also other avenues you can pursue such as buying y our car back after they total it out and pay you.
Having a salvage buyer brought in to sell it to them while still being compensated by your insurance company. However in your case with your cars being as common as they are you would most likely best be served by getting a fair market review done and going over it to determine if the offer is in deed fair or having them buy you a comparable replacement. |
| Yeah...we'll see how it shakes out. We did tell them that there was no way we were going to accept a 'payoff' on our 78 Jeep Grand Cherokee. It's been almost completely restored within the last year with exception of the interior and the book value is nowhere near the collector value. After looking at the Jeep they agreed not to write it off but couldn't tell us what they could do because it's "unknown territory ". They said they will have to think about how to handle it. |
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Yeah...we tried to insure the jeep through Hagerty but they said because it had a tow hitch installed it isn't eligible. Then they said if it was used to haul anything even something like bringing home a new tv in it is enough to void the policy....the rules they put on driving the Jeep if it was insured with them were crazy, otherwise we would have used Hagerty.
I'm not going to get too worked up until I hear their offer. Everything has gone so bad lately I'm just having a hard time staying positive. |
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Agreed value insurance. I have used it on multiple cars and trucks over the years. Mainly Hagerty, but there are lots of other companies. Ack............................Grand National is a Buick, not a Chevy  Lol you did your homework . . . Both cars are shit boxes that go fast. 
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Does it have to have 'antique' or 'classic' status to get the agreed value insurance from Hagerty? We may have to switch our Jeep and the Corvette over. I suggested having the tow hitch removed (it's welded on) to qualify for Haggerty. When I restored my 76 Vette, I had it insured with Hagerty. There were lots of rules, another vehicle for a daily driver, garaged, etc. But it was a no hassle, agreed value policy. You're learning the hard way that "regular' insurance sucks for any type of special vehicle. |
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Agreed value insurance. I have used it on multiple cars and trucks over the years. Mainly Hagerty, but there are lots of other companies. Ack............................Grand National is a Buick, not a Chevy Lol you did your homework . . . Both cars are shit boxes that go fast. No homework Bubba. I know these things.  Been hotrodding longer than you've been alive.
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Agreed value insurance. I have used it on multiple cars and trucks over the years. Mainly Hagerty, but there are lots of other companies. Ack............................Grand National is a Buick, not a Chevy Lol you did your homework . . . Both cars are shit boxes that go fast. No homework Bubba. I know these things. Been hotrodding longer than you've been alive. since you was waist high to Dan huh? |