Expert: Ron Cercone - 1/30/2009

Question
I was in a car accident a few days ago. it wasnt my fault and i filed a claim with the other person's insurance company. They gave me a rented car for now, and told me that they think my car is totaled. i just bought this car a month ago. and only paid the down payment,and two payments of $350. my question is... if my car is really totaled... i know they're supposed to payment the value of the car that's on the market. but im still paying for it to the dealer. so ..will the insurance company pay out the rest and pay me what i have already pay for that car?


thank you...

Answer
Hello Jen,

You are entitled to a replacement vehicle exactly like yours without one penny out of your pocket, if you want to play hard ball. Let them have the salvage if they can replace your car exactly as it was.

Your car is a total loss only if the repair cost is more than the market value of the car less the salvage value. Both of these values are very negotiable and can vary wildly.

Most insurers will greatly underpay the value and leave you with some lender lien payments left on the car, arguing this is because a car loses value as soon as it leaves the lot.

But all is not lost.

Option 1 - replace the car. Because the car is so new, and because insurers have "such great buying power", tell them you just want the car replaced with another one exactly the same with 0 miles on it.

They should make allowance for minor differences like mileage, options. You pay for the "0 mileage upgrade." Even if the car comes from out of state. But they have to pay the delivery cost. And don't accept the car without inspecting it first. Delivery truck drivers will try to get your signature without you inspecting the vehicle closely. And get a mechanical guarantee from the insurer before shipping. And make sure any warranties are transferred to your local dealer if they want to bring one in from out of state.

Option 2 - Cash settlement. Don't get sucked into a valuation that uses "comparable vehicles" 200 miles away, or away from your local market area. If you bought your car at a dealer 10 miles from your home, then you should not have to go 60 miles to look as a so called comparable vehicle. And believe me, most of the comparable vehicles listed by insurers have plenty of defects. So, you must personally inspect their best 1 to 3 comparable vehicles. Don't waste your time inspecting 10 vehicles listed on their valuation if the first 2 or 3 are not as described.

Most computerized valuations look so impregnable and professional. The truth is that most of them are full of garbage. Garbage in garbage out.

For 11 pages of really detailed information on these and other common auto total loss claim issues go to http://www.uclaim.com/products.asp and consider the automobile guides entitled "TOTAL LOSS AUTOMOBILE INSURANCE CLAIMS ADVICE AND HELP - FOR CLAIMANTS Subtitle:  HOW TO NEGOTIATE WITH THE OTHER DRIVER’S INSURER". And if your vehicle was valued using computerized CCC, ADP or another method, see the reports pertaining to those methods in the automobile product section.