Expert: Barrett Smith - 2/1/2012

Question
I was recently involved in an accident (state of Texas- btw) where I was rear-ended by a tractor trailer rig. The driver of the rig was found at fault. I have filed a claim through the trucking company's insurance. The company totaled my vehicle out. The amount they are offering is approx $2000 less than what I currently owe on the vehicle (I have only had the car for 6 months). Now, I do have GAP coverage on the vehicle, which at this point will get me to the break even point when all is said and done, but I'm still without a car. I'm feeling like I have been handed the short end of the stick by the insurance company as I feel that I should get at least a little something to put toward a decent down payment on a replacement vehicle. short of litigation, What are my options? Or am I just "SOL" as they say.

Answer
Steve,

Sorry to hear of your loss but I hope you are OK physically. Because the information you provided on your specific claim is limited and much more will be required, I will do my best to lend you my thoughts based upon my experiences.

Unfortunately, and fairly frequently, we have found that many insurers, on average, generally under value total loss replacement values somewhere from $1,200.00 to $2,000.00, as it would appear occurred in your particular case.

They do this of course to save money. They have found that for the majority, most consumers either don’t know they are being underpaid, don’t know how to combat it or simply don't want the hassle or cost to fight and as a result all too often begrudgingly accept the low-ball settlement offers which of course encourage insurers to continue the practice. Understand that insurers don't care if you go away mad…just so long as you go away!

So what can you do?:

The only way you'll get the "short end of the stick" is if you don't find out what your vehicle’s pre-loss value was and other funds do you such as sales tax and tag and title transfer fees etc.

Those consumers that do elect to seek viable information and combat low-balling most often end up obtaining a fair value settlement but do so only after getting assistance from a truly independent expert appraiser familiar with such issues to assist them.

In some states the costs for such services, while reasonable, are recoverable from the insurer if it’s found the insurer did in fact make too low of a settlement offer.

Or...you may wish to seek recovery of your loss from your own insurer if you have collision coverage on your vehicle. Making a claim under your own policy gives you certain rights and leverage you may not have when going against the at-fault party and their insurer. You may be able to get the at-fault party or their insurer to cover your deductible and your rental or loss of use.

If you would like additional assistance I would suggest you contact and independent  expert or our ADE North West office in Oregon who handles the Texas region and ask for David Smith @ #888# 868-9891 for a no cost, no obligation consultation whereas they can answer your questions more specifically.

Thank you for your question and I hope I’ve provided you some insight and assistance. Let me know if I can assist further.

Barrett