Expert: Anne - 1/2/2009

Question
I have a 1998 ford taurus sho in michigan. the vehicle has 140000 miles on it. I researched the car value after getting into an accident. My brother in law wrote the car up for AAA to inspect. The value of the car is between 5300 and 4500 depending on if you use kbb or N.A.D.A. The insurance company had offered me 3300 for the car. The issue that I am having is that I have reciepts for putting in another motor with 50000 miles, and another trans that has 75000 miles. THe insurance company will not except either receipt since they were not done within a years span of the accident. My main question is that, does the insurance company use what the value of the car is, or do they determine that by what the value of the car being sold in your area is worth? that is a signifigant diffrence.

Answer
Hello David,

You are in a difficult position. Insurance companies do not have to take the N.A.D.A. or the Kelly Blue Book values. They are national directories based on arbitrary evaluations. What they must value is the value of your car in your local market.

Now, I asked you this, would the fact that putting a car at 75000 would increase the value of a car that you are buying? I believe it would. Why is the insurance company only allowing one year? This is arbitrary and there is no law in Michigan that allows them or requires them to NOT look at your receipts and compensate you for that. They must take this into account. A new motor is not a simple repair and it is pretty expensive!

I suggest you get this eBook. It would help your claim and settle the total loss http://www.auto-accident-blog.com/go/Total-Loss-Ebook.php

Also visit: http://www.auto-insurance-claim-advice.com/totaling-a-vehicle.html for more information.

Good Luck,
Anne.