Expert: Claims Guy - 3/21/2011

Question
My car was hit by another person who was at fault. The 16 year old car is a total loss.  The other insurance company has used Autosource to identify the typical price for my car and then nit picked every detail to reduce the settlement amount.  I have maintained that my car was typical - a typical car has some reasonable amount of defects - it is not in excellent condition.  Furthermore, the appraisers assessment included defects that are not on my car (hail damage, smoke odors, etc.).  At best they are making a mistake, at worst it is bad faith.  How do I get them to raise their settlement offer?  Also, even though I have not rented a car, can I claim loss of use?  How long can it be claimed?

Answer
1.  Loss of use: most states have a law on this; most allow a small amount and a few allow nothing for a total loss.  My company provides 5 days after we extend an offer (not after it was accepted), as this complies with or exceeds the law in all states.  Most reputable insurers will do something comparable.  If they don't provide this, you could check with your state insurance dept to see if there is a law in your state.

2.  Settlement offer:  You could call the supervisor of the appraiser, explain your complaint, and demand that he either adjust the appraisal to correct the mistakes, or agrees to meet you to inspect the vehicle together, so you can point out the errors.  If he won't agree, then advise you will complain to the state insurance department.

As far as proving the value, there are many ways.  Autosource is one.  You can also check NADA Kelly blue book, and Edmunds.  All have free web services.  NADA tends to run high so they may not buy it.  Also check cars.com and local classifieds for comparables.  It may be hard to find comparables with that age vehicle.  You could also call a couple used car dealers and ask the to provide an estimate.  Document everything and prtovide to the insurer with your proposed value.  

Worst case scenario, you'll need to sue the other driver in small claims court.  You do not need an attorney, but the insurer will need to provide one to defend their customer.  They'll probably just settle to avoid legal fees.