Expert: Richard Hixenbaugh - 11/25/2009

Question
My 2002 F350 Lariat Crew Cab Long Bed 7.3L Turbo Diesel (loaded) truck was totaled early last month and the insurance company is offering me approximately $5,000 less than my market research indicates my truck was worth.  They won't make any adjustments for mileage (my truck had only 41,745 miles on it), factory installed equipment, or trim/style (i.e., XL vs. Lariat).  They first sent me a report from CCC that was so full of errors, that after I pointed them all out, they decided to do their own market research.  That consisted of averaging Kelley Blue Book (they used excellent retail value), NADA (they used clean retail), and "one" 2002 F350 XLT Crew Cab Short Bed with 67,746 miles that was listed on Autotrader.com.  There was no adjustment made for mileage, equipment (i.e., limited slip axle,  electronic shift on the fly, chrome cab steps, telescoping mirrors, premium sound, roof clearance lights, reverse vehicle aid sensor, heated seats, camper package, and upgraded tires), or trim/style (XLT vs. Lariat).  They put right in their offer letter that they don't make those kind of adjustments.  I've sent several requests to the insurance adjuster asking for clarification and without any response to date, they've hired an appraiser.  The appraiser used four 2002 F350's of various configurations and eight 2003 F350's of various configurations, with no obvious adjustments for the above mentioned items.  The appraiser indicated the truck was in "very good condition, inside and out, was clean, had low mileage, & great tires".  My market research consists of fifteen 2002 F350's, mostly Lariat Crew Cab Long Beds.  I did find other configurations, but made adjustments to the values based on either Kelley Blue Book or Cars.com info.  I adjusted the mileage at .15 cents per mile based on input from local used car dealers. Do you have any advice on what I should do?  I honestly believe that fair market value would include adjustments for mileage, equipment, and trim/style.  Am I correct?  If not, please set me straight.  Thanks in advance!

Answer
Hi Landis,

You are absolutely correct. All those things should be taken into consideration. For the adjuster to put in writing that they do not take to items into consideration is like admitting he is an idiot.

You should file a formal complaint with your State Insurance Commissioner's Office. Express your concerns about the item not being considered. If they are unable to help, you may need to hire your own independent appraiser to come up with a figure then you can use that to try to negotiate a better price. An independent appraisal will cosy you $300 to $400.

I hope this helps
Richard Hixenbaugh