Insurance Company is giving me the run around!

[Kinder]

I was in an accident (my fault ) but there was more damage to my car than the other guys. I got an estimate for the damages for my car which came to roughly $1,900 from a repair shop of my choosing. Well, when the insurance company finally got around to making their own estimate, they claimed the damages to be $3,100! Then they told me it was a total loss and that they would give me $4000 if I wanted to keep the car or $5000 if I wanted to give them the car! I bought the car used from a dealer and still owe over $9000 on it! According to NADA the car is worth about $5,300.
Why would they rather pay me off? All I wanted was for them to fix my car! I would cost them less to fix it! I've tried faxing the estimate to them and they said they would "consider it".
Meanwhile, I can't work because I'm a messenger and without my car, I'm totally up the pipe! It's been almost a month of phone tag and the general run around. What should I do? Should I hire a lawyer or just file a small claim? Can I sue for lost income? All I want is enough to pay my bills. Someone please help! My savings is down to nothing!

 

[PILawGirl]

Insurance companies use their own system to determine the value of your vehicle. If you can find a few comparables (same car, similar mileage, options, etc.) for more than they are offering sometimes you can submit it and they will take that into consideration.

The $1,900 in damages were probably just from a visual estimate, insurance companies usually have shops do a tear down to find out if there were any unseen damages. There is a certain percentage rate that insurance companies go by. For example some of them will total a car if the damages are more than 70% or 80% of the the actual cash value of the vehicle.

They won't take into consideration that you owe 9k on the vehicle. The only way you could get anyone to pay the difference is if you have gap insurance. If you do not have gap insurance and you get 5k for the car you're still responsible for the additional 4k owed on the loan.

If you really can get your car fixed for $1,900 you can always get the 4k from them, do a salvage title and get the car fixed for the $1,900. But, like I said, there may have been some unseen damages in the first inspection. Not many lawyers will handle a claim that is just property damage unless you pay a retainer.

 

[Kinder]

They didn't take the car anywhere. They looked at it while the owner of the body shop (who did the original estimate himself) was present. The owner told him that his estimate was way off but the guy didn't listen. He then called the insurance company on my behalf my was treated badly.
There is no way that the damages are almost as much as the car is worth. Only the headlamp and a small part of the fender were damaged. That's why the whole situation is absurd. Sorry, but that's not much help.

 

[PILawGirl]

I was simply giving you an answer based on the experiences I've had with property damage issues. You did not say whether or not they had it looked at by another shop or just did a visual inspection. Sorry my answer wasn't any help.

 

[lwpat]

I fail to see the problem. They are offering you 4000 to fix 1900 in damage. Wish my insurance company would do that.

 

[FRContributor]

Mine isnt even close..

 

[tinroof]

Even though they are willing to pay for the damages, you have to look at the other damages that your body shop did not look at. There could be other damage and the insurance company is covering for that. Sometimes it is easier to total out a car then to fix the damage. Did your body shop do an estimate for time and materials or just for materials. It also depends on the year make and model of the vehicle. But if they are willing to pay that amount out, buy it back from them and pocket the rest.