Expert: Claims Guy - 6/18/2011

Question
Hello:

I am wondering if you can give me some guidance.  My wife's vehicle was t-boned by a 16-year old who ran a stop sign.  He was cited by the police, and his insurer accepted full liability.  The appraiser determined the vehicle to be a total loss.  However, his appraisal seems low by about $1200.  I am basing this on numerous sources, including what my insurer said to use for a value (they said roughly the average of Kelly Blue Book dealer retail and private sale values#, the NADA guide, comparable cars currently for sale in my area, and even a list of comps the appraiser gave us #which I averaged#.  He is using CCC values, and none of his adjustments to the comps have any justifications listed #in some cases, cars with more miles were valued higher than what he appraised our car for#.  All of these sources give me values between $900 and $1500 over the appraisal.  And even this does not take into account that the appraisal missed a couple options on our car, which should be worth a few hundred dollars.  Our car is in good condition #well, it was before the accident anyway), and even his own appraisal took off no deductions, and added $800 for the good condition.

Interestingly enough, his value is exactly what I came up with for the trade value on NADA.  I cannot believe this is a coincidence, and I don't think trade value is equivalent to actual cash value, is it?

Is this typical of a first offer from an appraiser?  Should I demand that he justify how he compared the comps to our car?  Should I counter with a higher amount to negotiate with him, hoping to meet in the middle?  Or just say "look, this is what I come up with - I'm not trying to make money, I just want to replace my car, and this is what it's worth based on all these sources"?

Also, should we be asking for reimbursement for time spent looking for a new car, miles put on our car while looking, etc?  Not to mention the costs of a notary for transferring titles, registrations, etc?

Thank you very much, in advance, for answering my questions.  You help is truly appreciated!

Sincerely,
Shane

Answer
Interestingly enough, his value is exactly what I came up with for the trade value on NADA.  I cannot believe this is a coincidence, and I don't think trade value is equivalent to actual cash value, is it?   NO, TRADE VALUE IS MUCH LOWER AND YOU SHOULD GET RETAIL

Is this typical of a first offer from an appraiser?  Should I demand that he justify how he compared the comps to our car?  Should I counter with a higher amount to negotiate with him, hoping to meet in the middle?  Or just say "look, this is what I come up with - I'm not trying to make money, I just want to replace my car, and this is what it's worth based on all these sources"?   LAST OPTION IS WHAT YOU SHOULD DO.  TYPICALLY INSRUERS DO NO NEGOTIATE TOTAL LOSSES LIKE THEY DO INJURY CLAIMS.  SO YOU NEED TO SHOW WHY HE IS WRONG.  BE POLITE BUT FIRM.  DO NOT MAKE IT PERSONAL AS THIS WILL ONLY GET IN YOUR WAY.  IF HE IS NOT REASONABLE, ASK TO SPEAK TO HIS MANAGER.  WORST CASE SCENARIO, YOU MAY NEED TO SUE THE OTHER DRIVER IN SMALL CLAIMS COURT.  THE INSURER WILL DEFEND THEIR DRIVER BUT JUDGES WILL TYPICALLY BE MORE FAVORABLE TO SOMEONE IN YOUR POSITION - THEY KNOW HOW THIS WORKS.

Also, should we be asking for reimbursement for time spent looking for a new car, miles put on our car while looking, etc?  NOT ELIGIBLE.   Not to mention the costs of a notary for transferring titles, registrations, etc?    YES FOR THIS.   ALSO THEY SHOULD PAY FOR A RENTAL CAR THROUGH A FEW DAYS AFTER THEY MADE THEIR OFFER.