Expert: Doctor Settlement - 6/17/2007

Question
QUESTION: My son totaled his 1995 Camry out of his state of residence.  The insurance adjuster made and offer - which we refused, but the figure he came up with was based solely on NADA.  It's my understanding that in Minnesota (where we live) adjusters look at NADA and contact 2 dealers to calculate the value.  Can this adjuster base his offer only on 1 source?  Additionally, in the settlement offer, sales tax is included; however, is the insurance company required to pay sales tax on the "replacement" vehicle as well?

Thanks in advance for your response.

ANSWER: Hi Noreen,

I hope that your son was not hurt: totaling a car can involve a big impact and it is probable that an occupant could end up with an injury.  If so, let's hope that it heals quickly.

As for valuation, YOU TAKE THE INITIATIVE: DO NOT RELY UPON THE ADJUSTER TO FURNISH THE FIGURES.

What you are aiming for is the actual cash value of the vehicle just before the accident.

Do not forget to add in for recent additions or new equipment or anything that would have increased the value of the vehicle.  Car Accidents: Handling the Accident Scene & Your Damaged Vehicle http://www.settlementcentral.com/page0007.htm

Go to local dealers, newspapers, and online for your own information.  www.autotrader.com and www.edmunds.com are two I have used.  Put in a huge radius (500 miles) in the online search so that you get some more vehicles.  Don't forget to follow-up on advertised prices to see what the vehicle actually sold for.

As for NADA, it is not too authorative for many local areas.  So you can create a more accurate record of the market.

As for tax, yes, they add in the tax on the price of your car, and also any prorated license plate fees.  But you do not get the tax on any replacement vehicle.  What you do with the money is not anyone's business, assuming you own the car.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.settlementcentral.com

---------- FOLLOW-UP ----------

QUESTION: My son is fine as is his passenger, so it could have been much worse.  Thanks for the information.  We have supplied the adjuster with a ton of comparable vehicles as well as service records, but to no avail.  I'll check out the link you recommended and we will keep fighting with him.......
Thanks again!!  

Answer
Well, now it is time to make a complaint to your state insurance adjuster http://www.settlementcentral.com/links.php

Complete the form ASAP, and send an advance copy to the adjuster's supervisor and tell her that unless you get some consideration of other relevant evidence of value, you will file the complaint ASAP.  

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.settlementcentral.com