Son in Accident; Some Quick Insurance Questions - PeachParts Mercedes-Benz Forum

shertex · #1 03-10-2012, 10:45 PM

Son in accident, other person's fault. He's fine, I'm waiting to look at car; he claims just damage to the bumper, but we'll see. It's a 1992 300D with 233,000 miles.

Just trying to get my ducks in a row in dealing with the other driver's insurance company.

1. What tends to be the relationship between actual cash value and other values to which I have access (NADA, KBB)?

2. What's the ratio of damage to ACV at which an insurance company will total the car? I've heard 50%.

3. If the insurance company decides they want to total the car, how do I go about negotiating with the insurance company so that they pay me for the totaled car and I buy it back as one transaction? My main goal in all this is to keep the car.

Obviously, I'm thinking worst case scenarios. But I dealt with this once before when someone totaled a Civic....didn't care so much about that.

Thanks.

tangofox007 · #2 03-10-2012, 11:13 PM

Quote:

Originally Posted by shertex

What's the ratio of damage to ACV at which an insurance company will total the car? I've heard 50%.

That varies with the company, but 70-80% would be more typical.

vstech · #3 03-11-2012, 12:22 AM

be sure and have LOTS of info on the value of the car.
I had no issues with my 87 wagon's value, no mention of totaling at all. be sure and take the car to a Mercedes dealer for the estimate.

Jeremy5848 · #4 03-11-2012, 12:54 AM

When my '96 E300D was hit by a deer, State Farm at first (sight unseen) talked about totalling the car -- because 15 year old cars with 250,000+ miles usually aren't in very good condition. However, they assigned an appraiser to the case and I was at the body shop when he showed up. I let him look at the loose-leaf notebook in which I had all of the maintenance paperwork from Day One, gave him a copy of the appraisal that was done a couple of years ago, and answered all of his questions. He ended up satisfied that the car was worth saving and State Farm ended up paying almost $8,000 for the repairs (the deer was uninsured). As animal collisions are covered under "comprehensive," the work cost us nothing because our comp coverage had a zero deductible. On top of that, it was not considered a chargeable accident, so no change in our premiums.

To sum up: the claims people are happy to help you get the best possible deal but you've got to give them something to work with. They have to justify the proposed settlement to their chain of command and that means documentation, the more the better.

Jeremy

vstech · #5 03-11-2012, 01:11 AM

oh...
how's the conversation about the speakers going about now?

layback40 · #6 03-11-2012, 01:22 AM

Quote:

Originally Posted by vstech

oh...
how's the conversation about the speakers going about now?

You beat me to it John !!!!!

Desert Panther · #7 03-11-2012, 03:10 AM

Quote:

Originally Posted by layback40

You beat me to it John !!!!!

x3 hahahahhaha

shertex · #8 03-11-2012, 05:51 AM

Quote:

Originally Posted by vstech

oh...
how's the conversation about the speakers going about now?

Haha....I knew you guys would make the connection!

Let's just say that's been put on the back burner for the moment....

shertex · #9 03-11-2012, 06:49 AM

Looks like the damage is limited to the bumper....front right half pulled off.

t walgamuth · #10 03-11-2012, 09:23 AM

Traditionally the insurance company will sell back the car for 10% of the actual value. so it is like this. lets say you car is worth 5000 and you have wreck that makes 5500 in damage. The insurer will pay only up to 5000 (the value of the car can be negotiated though so you will have the chance to offer proof your car is worth 5000 as an example but you will have to ask for the chance to do so)....back to the example, so they will pay you 5000 and they get to keep the car which they will sell to a yard. The going price traditionally is .10 on the dollar so in this case it would be 500. If you prefer they will pay you the 5000 less the 500 and you get to keep the car, so you are left with your damaged car and a check for 4500.

You have to be assertive in these negotiations but you can come out fine. I have done it many times and cannot remember a time when I did not do well in the end.

One time I actually got more for the car than I thought it was worth.

I typically go find a small shop and negotiate what to be done to the car and supply many of the parts from my inventory of spares.

I just got my miata fixed from an accident over a year ago. I got more work done than was caused by the accident and for less than the pay off.

At the time of the accident I had used the money to pay for the motor rebuild and just done some bandaids myself to make the car usble.

shertex · #11 03-12-2012, 08:20 AM

I have an appointment with the MB authorized collision place tomorrow and the adjuster from the other drivers's insurance company is coming out on Thursday. Strategically, is it better to furnish the adjuster with the written estimate from MB or wait to see what the insurance company offers then counter with the MB estimate if necessary?

vstech · #12 03-12-2012, 08:40 AM

I like to have my estimates in hand, as the adjuster is only making an evaluation of the damage, having the detailed estimate for him to look over could make a difference on the report.

tangofox007 · #13 03-12-2012, 09:53 AM

Quote:

Originally Posted by shertex

Strategically, is it better to furnish the adjuster with the written estimate from MB or wait to see what the insurance company offers then counter with the MB estimate if necessary?

The latter, especially if you don't want the car declared a total loss.

Junkman · #14 03-12-2012, 10:54 AM

Gather your information but don't disclose until you have information from the carrier. If the carrier comes in with a low price, bump them up based on your estimate. They "guarantee" a shop's work but once you have the work done, you essentially own it.

You should be able to get a check & repair it as you will since you own it outright. Be sure all of the little brackets are covered in the estimate. Used OEM is better than new aftermarket. New MBZ may be more than you want to spend. - even if it is ins co money. The parts you have are used.

Bob338 · #15 03-12-2012, 12:06 PM

I'll try to give you answers to most of your questions based on "only" about 30 years experience in the insurance claims field.

Firstly, in dealing with the other person's company, called a third party claim, they're interested in actual damages. As Jeremy eloquently put it, the company wants to be fair and will treat you that way. Problems arise only with the personalities involved, such as the insurance person in contact, trying to become a star by erroneously believing he'll get brownie points if he shorts you somehow. A supervisor usually straightens that out.

No insurance company can force you to 'total' a car. It's your car! The constructive total loss is merely a calculation tool to enable establishment of the actual cash value, therefore the 'damages'. When that figure is agreed to, what you do with the car is your business. Dollars is all they are interested in. When dealing with your own company it's the very same. The only difference, if any, is your convenience in signing over a title to rid yourself of the problem of dealing with the wrecked car. They have an avenue to dispose of wrecks, usually through a network of wrecking yards, or rebuilders.

Actual cash value is the determination of damages. That's either the cost of repairs, including transportation during the repair if that be your only means. Or, the actual cash value of the vehicle. That's usually defined by price a willing seller will take from a willing buyer. Custom items usually only have value to the owner and a very limited number of buyers so that isn't a fair test nor does it necessarily add value on the open market. Some people would consider a 'boom' box a negative or with no value at all. Same with high end sound systems, and other customization. The test is either cost of repair, or a willing seller and buyer. The latter provides a good avenue for negotiation.

Repair of the damage is likely the avenue they will take and what they'd rather do. I wouldn't get into the Blue Book values on your end at all. You certainly aren't forced to sell. Give them a chance. You might be pleasantly surprised. If it's unpleasant, THEN try to establish values on your end. Use the avenues providing the most info. NADA or Blue Book are too general and cover too large an area to provide solid information but they are sometimes a good starting point. That's an easy avenue for an insurance adjuster but not particularly accurate. Craigslist will only show asking prices, as do ads in papers; those don't reach at the test of the actual price. They are aware that older car values are difficult which gives you the avenue of using values of which you may be aware in this special interest arena of Benz's.

If the repair yields a calculation that exceeds a fair value, THEN you can get into the establishment of a fair market value and you can suggest that right off the bat. Just bear it mind that it is a negotiation and has to be approached that way.

Good luck!