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Auto Insurance Claims/How they calculate for totaling

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Expert: - 11/4/2008


Question
My car was involved in accident with fair amount of damages. My brother in law driving at that time, so i claimed to my insurance, How insurance people calculate whether to be repaired or totaled.  Even if they want to repair can  i request them to total for the same amount of repairs.

Thanks in advance

Raj

Answer
Hello Raj,

From my experience in repairing autos for insurance companies, the insurance company is the one who decides if the vehicle's market value is not exceeded. Insurance companies get fair market value a number of ways. Kelley's Blue book is just one example that they use or the NADA (National Auto Dealers Association) guide. If the vehicle is rare, they may check local regional classifieds for like kind vehicles.
I have never seen the opportunity in which the insured got to determine if the vehicle was totalled.
Now, in some cases I have seen insurance companies let the insured buy the totalled car back to repair it himself.
From my experience except for a few cases, the owner always feels his car is worth more than it really is.
There are many things that come into play. A car from California is worth more than in Illinois because the Illinois car may have rust.
Average mileage is 15K a year. Pre-existing damage is considered.

Auto Insurance Claims

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Rob Painter, Ase, CFEI, CAFATE

Expertise

Please remember. I am not an attorney and cannot legal advice. My answers are based on my experience due to litigation I have been involved in as an expert, for both insurance companies and while oposing them opposing them. I deal with only comprehensive claims on autos related to fire and theft. I have even had the opportunity to rewrite policy coverage language as it relates to vehicle theft and forced entry for insurance defense attorneys.

Experience

Experience in the area: Working with insurance companies and attorneys on these issues for over 20 years. It is very common to have a reported stolen car with a so-called factory anti-theft system to have the theft claim denied. I have served successfully as an expert witness in the courts across the US representing the insured and their attorney revealing that the insurance expert did not take all known theories into consideration before rendering their "Forensic" conclusion. Many insurance carriers us independent "Forensic" experts to examine reported stolen vehicles commonly using flawed methodology implicating the innocent insured with the theft. My job is to determine if the insurance expert reached his conclusions based on accepted scientific principals or just net opinion with no basis other than opinion. My case record against such experts is very compelling.My resume can be seen at the catagory "Auto Theft and Prevention." In "Forensics" the scientific method must be employed. In the forensic locksmith field determining how a reported stolen vehicle was last operated, many processes cannot be duplicated and are conveniently not addressed. If they were, juries would have the opportunity to make a fair and impartial opinion at least about what the expert could or could not prove. There is a purported process determining the last key used. The chances of determining such is very rare uless the key is found in the ignition lock. Experts commonly destroy evidence as well and are rarely questioned on this event. I reveal the weakness in their testimony on such instances.

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