Expert: Claims Guy - 7/11/2011

Question
My daughter was rear-ended in her Honda CRV on 7/1/11. It happened about 8-9 hours away from our home. The Delaware State Police established fault with the guy who hit her. Our CRV was declared not driveable. She got a ride from Delaware to D.C. and I had to travel 588 miles round trip to pick her up. (Blacksburg, VA. to Arlington, VA.)

Peninsula Insurance Co. issued a 10 day loss of use check for $370 (10*$37) and I was absolutely aok with that amount.

They then totaled my vehicle and offered a low settlement in my opinion.

They seemed to have taken the mean of about 12-15 2006 Honda CRVs, within 100 miles, that are either on the market or have recently been sold. Most in their sample included vehicles with either much higher miles than ours (ours had 60K, many in the sample ranged from high 70Ks to high 80Ks) and/or were manuals (ours was an automatic). So from my perspective they manipulated the mean, ie of course manuals and much higher mileage vehicles would have lower valuations. (as an aside, I can't find a 2006 CRV EX AT with anything near 60K, within a 300-mile radius via autotrader and cars.com)

I rejected their settlement offer and countered with NADA.com + the $$$ I paid for a new set of tires literally purchased 6 days prior to the accident (receipt faxed to them along with my counter proposal) + 3% Virginia tax that I'll pay to replace my lost CRV. My counter was $17,995.

My questions:

(1) Can/should I expect my 6 day old tires to be paid for?

(2) my loss of use check was for 10 days from 7/1/11. Those 10 days end today. Should they pay loss of use until we settle?

(3) am I entitled to be reimbursed for a 588 mile round trip to go get my daughter?

Any other advice, insight, wisdom etc. is GREATLY appreciated!

Answer
(1) Can/should I expect my 6 day old tires to be paid for?

No.  The value is based on a comparable vehicle with good tires.  They might add a small amount because they are new.  Maybe $50.

(2) my loss of use check was for 10 days from 7/1/11. Those 10 days end today. Should they pay loss of use until we settle?

This is negotiable.  They normally pay for about 5 days LOU after they make the offer.  Since there is a dispute, the question is - who is causing the delay?  If you can show they made an error in their valuation, you might get a couple extra days.

(3) am I entitled to be reimbursed for a 588 mile round trip to go get my daughter?

Yes.  I would ask for the IRS mileage allowance.  

My company uses NADA retail to make total loss offers and we are a very large insurer.  You could mention this to help supportyour point.  Also, get retail values from Kelly and Edmunds.  A mean of those 3 values might be fair.  If the vehicles they considered are not comparable, they need to make adjustments for those differences.