You are here:

Auto Insurance Claims/Mom involved in crash

Advertisement

Expert: - 12/14/2008


Question
My mother was involved in a accident that was not her fault. She owns an older model car that the adjuster has stated he considers a total loss. I am concerned that the adjuster will try to settle for a low amount on the vehicle.
The car is a 1992 Olds 88 Royale and has 130000 miles on it which is very low for this year of auto. Also, mechanically the car is very sound,as we have kept it very well maintained for her over the years. My question is, What if any options do we have it the offer is as low I am afraid it will be? I have checked classifieds to try to find comparatives. Will this help?
Thanks, Mark

Answer
Hi Mark,

The offer will be based on the actual cash value of the vehicle immediately before it was damaged.  This is the retail value she could have sold it for.

Unfortunately, a car of that age and mileage will not be worth very much to other people, even if well maintained.

The adjuster will either use a vendor to come up with the value, a book value (like NADA or Kelly), or he will call dealerships and get some quotes.  You can do the same to make sure the offer is fair.  Newspaper ads are not helpful because this is the asking price, and the selling price is often much lower.  Thats why calling dealers is helpful for their opinion.

If the value is lower than you like, you might be able to retain the salvage and get the car repaired.  But keep in mind the insurance company will deduct the salvage value from their offer, so you will get less.  Also, make sure that you only use a reputable repair shop and they assure you the care will be safe to drive.

Auto Insurance Claims

All Answers

Answers by Expert:

Ask Experts

Volunteer

Claims Guy

Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

©2012 About.com, a part of The New York Times Company. All rights reserved.