Expert: webfoot - 9/7/2006

Question

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FOLLOW UP, SECOND TIME....
Just letting you know where we are at. The car has $7000.00 damage. INS. CO. will not total, they say they want 80% damage, since they say car is worth $10,500 no total......The body shop says the ins. co. will give me after my ded. $6500.00, and the shop will give me a $1000.00 for a total of $7500.00...Body shop says that is good money for a 99 integra LS with 27K mile. Says i could notget that kind of money if it was fixed and i tried selling it...Other option is to fix and keep......I have to decide by friday....I may have to take the money...Just do not know how the car will eb if i repair...Just wanted to follow up and thank you for your help......I gave you perfect ratings..and would again..Thanks!

Steve



Followup To

Question -
Hi,
This is a follow-up question to my others on above vehicle around 8-20. As of today, the damage is $5928.00. As far as the body shop is concerned (ALLSTATE AUTHORIZED), they say the car is a total loss. Problem being the value is somewhere between $9400-$10,200,minus salvage, the adjuster has told the shop to do additional teardown, the shop said off the record, he is trying to NOT total it....They still say no frame, but the only reason this car has a good value is the miles (27,500), i am really worried if this car gets repaired i will be looking at problems. Do i have any recourse, or am i stuck on whatever the adjuster decides? This is in the state of Florida...Thanks again for your help!

Answer -
The decision belongs to the insurance company.  They owe for the repair cost or total loss cost, whichever is less.  If you still don't want the car once it is repaired, then you always have the option of selling it.  If the car is repaired correctly, there is no reason why you should have any problems.  If anything, this has even lessened the chance of future problems as you are going to have a bunch of new parts.  Even though the car was low mileage, the cooling parts usually fail around the 6-8 year mark and now you won't have to worry about that.  

As far as the body shop comment that the adjuster is trying "not to total it".  The adjuster is following the policy.  If it totals, it totals.  If it repairs, it repairs.  The adjuster has no incentive either way other than to follow what the policy says.  I've never known an adjuster that would try not to total a car.  For us, it's the quickest and easiest solution.  Unfortunately though, the numbers just don't work sometimes and the car has to be repaired.  However if it does total, we as adjusters have to answer to our bosses as to why and by getting further teardown, we can justify our decision either way.


Answer
Some of the total loss numbers that insurance companies come up with are very high, but I checked NADA and because of the mileage, the car does have a book value of around $10k.  The body shop is right though that as a private seller, you would never get that kind of money for it.  I would say that you could likely sell that car for between $8000-$8500.

Are you saying that the shop is interested in buying the car as is for $1,000?  They certainly do see an opportunity to fix it and turn a profit.  If this is the case, I'd tell them that you'll take $1,500 (plus they absorb any current charges due) and they'll likely go for it.  Figure that and the $7,000 from insurance and you would be getting the $8,500 then subract the deductible that you'd be paying either way.

If you could swing that deal, then that may be the way to go.  With that much damage, you will have a harder time trying to get $8,500 on your own and the Florida courts have already ruled that your insurance company doesn't owe for diminished value so that will not be considered on a first party claim.

Good luck!