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Total Car

Discussion in 'Auto Accidents, Injuries' started by nique23, Apr 7, 2016.

  1. nique23

    nique23 Law Topic Starter New Member

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    Was hit by a driver and car was totaled. Paid 23K for the car and the insurance wants to give me 15K. I do have GAP, and also Better Car Replacement. What are my options?
     
  2. army judge

    army judge Super Moderator

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    Always, as in every motor vehicle collision in which you're involved, report the matter to YOUR insurance company.

    To NOT report the matter to your insurance often can cause you trouble with your insurer. It can also cause you to receive a less than desired result. Your insurance company will make you whole without having to result to protracted court actions.
     
  3. nique23

    nique23 Law Topic Starter New Member

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    Thanks for the quick response army judge - The accident was reported immediately. I just got a call from my insurance company that my car was totaled. Now I just don't know what questions to ask my insurance company regarding Better Car Replacement and how do I find out the value of my car
     
  4. army judge

    army judge Super Moderator

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    You say you have GAP insurance.
    You might want to see what the GAP insurer says.

    Let's say the car is worth $10,000.
    You get the value from Kelly Blue Book, or other online search sources.
    The insurance offers $8,000 to total the car.
    If GAP, or other coverage refuses to help, you sue for the $2,000 in small claims court.

    That's not as easy as it sounds.
    In many cases, people in your position end up eating the $2,000, or whatever the DELTA ends up being.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    Would it be too much to ask that you actually take out your policy and read the Better Car Replacement coverage?

    Whose insurance? Yours or the other guy's?

    How long ago did you pay $23K for the car? Cars depreciate rapidly, you know.

    The insurance company will tell you the value of your car based on its own research. If you don't agree with the assessment, you can dispute by doing your own research into the 3 price guides (NADA, Edmunds, Kelley Blue Book) and the local for sale ads.

    If you are disputing the value with the other driver's insurance company you will have to sue the driver and prove the value in court.

    If you are disputing the value with your own insurance company you can invoke the Appraisal provision of your insurance policy.

    It looks something like this:

    APPRAISAL
    A. If we and you do not agree on the amount of
    loss, either may demand an appraisal of the
    loss. In this event, each party will select a
    competent and impartial appraiser. The two
    appraisers will select an umpire. The
    appraisers will state separately the actual cash
    value and the amount of loss. If they fail to
    agree, they will submit their differences to the
    umpire. A decision agreed to by any two will be
    binding. Each party will:
    1. Pay its chosen appraiser; and
    2. Bear the expenses of the appraisal and
    umpire equally.
    B. We do not waive any of our rights under this
    policy by agreeing to an appraisal.


    You'll have to read your policy to find it.
     
  6. army judge

    army judge Super Moderator

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    That's very clear advice from someone who spent years in the profession, OP.

    I suggest you follow it to the letter.
     
  7. nique23

    nique23 Law Topic Starter New Member

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    Better Car Replacement" works like this: Instead of writing you a check for a similarly valued car, Liberty Mutual says it will write a check for one that's a year newer and with at least 15,000 fewer miles. The replacement would have to be in the same class and basic model type as the smashed one.

    The company offers an example on its website: "So if you have a 2007 vehicle with 35,000 miles on it and are involved in a total-loss accident, Liberty Mutual will give you the money for a 2008 model with 20,000 miles on it."

    "Better Car Replacement" does have conditions, including:
    • To collect the new wheels, Liberty Mutual has to declare your car a total loss.
    • The original claim must come under collision or comprehensive coverage, which are optional.
    • You still have to pay the deductible under whichever policy option applies.
    • You can't get it for leased vehicles or motorcycles.
    • It's not offered in North Carolina.
     
  8. nique23

    nique23 Law Topic Starter New Member

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    It is my insurance, Liberty Mutual. The car is a 2016 purchased in Aug 2015.
     
  9. nique23

    nique23 Law Topic Starter New Member

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    Kelly Book has the car worth 14K - 16K, Edmunds has my car at $22K, Nada has my car at $18K......

    The other drive did not have insurance, valid drivers license, possible illegal immigrant. The police did not determine who was at fault.
     
  10. nique23

    nique23 Law Topic Starter New Member

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    I also have New Car Replacement Coverage which is standard for Liberty
     
  11. adjusterjack

    adjusterjack Super Moderator

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    According to Liberty Mutual's website the New Car Replacement Coverage applies if the wrecked car had less than 15,000 miles on it. Confirm that by reading your policy. If your car had more than 15,000 miles on it you might only qualify for the Better Car Replacement.

    If you only qualify for the Better Car Replacement I suggest you start looking for a 2016 model of your car with comparable features and 15,000 less miles than your car had and submit the information to your claim rep.

    Arguing about what your wrecked car is "worth" seems irrelevant if either of the two optional coverages apply.
     
  12. nique23

    nique23 Law Topic Starter New Member

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    Adjusterjack - Do you understand what New Car Replacement or Better Car Replacement is?
     
  13. army judge

    army judge Super Moderator

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    I'm not adjuster jack.

    I know what new car/better car replacement is.
    It's a marketing ploy.
    It's not what most people take it to be.
    It isn't all that people perceive it to be.
    Take your situation, for instance.
     
  14. nique23

    nique23 Law Topic Starter New Member

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    Please disregard
     

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