Auto Insurance Claims/Total loss claim

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Expert: - 5/30/2011


Question
I was involved in a T-bone accident on the passenger side of my 2009 Pontiac G5 (the other party ran a red light and admitted fault).  When the damage estimate reached $8500 it was falgged and assessed as a total loss.  I do not know what the insurance offer will be (many minutes spent on hold given the vast number of claims due to tornado an floods recently) but I plan on going to the claims office to find out.  I have a car loan that will need to be paid off (lucky I opted for the gap insurance) however I have no money to put toward the purchase of a replacement vehicle.  Is there any way I can negotiate for a down payment for a new vehicle?  Is there any leverage in the fact that 2009 was the last year for Pontiac models?  I live in PA and would appreciate any advice you can offer.  

Thanks,
Michele

Answer
I would not go to the claim office without an appointment; they probably will not be able to help you.  You need to speak to the person assigned to your claim.

The loan is not relevant to the settlement.  They will pay you the actual cash value prior to the loss.  This is the amount you could have sold it for on the open market.  They will use some sort of valuation service to determine this.  You should check a few of the free ones online, like NADA or Kelly to make sure their offer is fair.

The gap coverage wll pay the difference if your loan is upside down - meaning you owe more than they pay you.  You cannot negotiate for a down payment - they don't owe this.  The fact that 2009 was the last year may actually work against you - this sometimes means a lower market value.  But each car is different.

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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.

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