Insurance Arguments over E500 Value - PeachParts Mercedes-Benz Forum

Educaid · #1 10-21-2007, 10:36 PM

You kinda left out the part that you just got the car a month ago. I assume you paid the market price for it and therefore that's what you should get for it if its totaled. What did you pay? Sounds like you want more than what you paid for it.

remotemark · #2 10-22-2007, 06:39 AM

Quote:

Originally Posted by Educaid

You kinda left out the part that you just got the car a month ago. I assume you paid the market price for it and therefore that's what you should get for it if its totaled. What did you pay? Sounds like you want more than what you paid for it.

I paid 11k for it. I don't want more than that, I just don't want them to insist on totalling the car and giving me the salvage title if the repairs are around 8 to 10k. I want the car and I want it repaired.

I only drove the car about 250 miles.

tvpierce · #3 10-22-2007, 01:34 PM

Quote:

Originally Posted by Educaid

You kinda left out the part that you just got the car a month ago. I assume you paid the market price for it and therefore that's what you should get for it if its totaled. What did you pay? Sounds like you want more than what you paid for it.

You can't logically make that assumption. Maybe there were extraordinary circumstances that affected the price (estate sale, seller moving out of town, seller lost job… needs money, etc.). Maybe the seller just didn’t know what the car was worth.

When the car was purchased, and for what price are immaterial. If he was able to negotiate or leverage a deal on the purchase, that’s his business – it in no way affects the value.

By that logic, if he bought it through an estate auction for $1000, that would be the value? Absolutely not!

And a very important point about retail value versus private party value: There is a certain amount of risk associated with buying any used car. Buying from a dealer minimizes that risk because you get some sort of warrantee – usually 30 days. But you pay for that reduction in risk. If you settle for the “private party” price you’re assuming an unreasonable amount of risk so that the insurance company can save a few bucks. Remember, you were sitting at a stoplight doing nothing wrong. Part of making you whole is NOT exposing you to an unreasonable degree of risk.

Another quick note: The insurance company is going to want you to sign off on the work, so they can close the claim quickly. There is no advantage to you by doing this. Let it lay for a few weeks or a month. Make sure no other damage crops up that is a result of the accident. Because once the claim is closed, you’re out of luck. Don't be unethical, but don't be stranded either.

Again, good luck.

remotemark · #4 10-23-2007, 11:13 AM

My shop estimated $6-8k barring any big surprises. Looks like I may have to have the valuation fight.

As for the recent purchase issue, I agree with TVPierce, why should the valuation be based on something other than value? At the end of the day, I am not looking to make a profit over my 11k purchase price, but I did also spend $850 in registration taxes and $700 to have the car trucked to me. I can't view those costs as amortized in any way as they came out of my pocket a month ago. If they total the car, I won't feel unethical arguing for a payout which includes those additional costs.

nhdoc · #5 10-23-2007, 12:36 PM

You haven't even been made an offer yet and you're already anticipating a fight. State Farm is probably one of the better companies, so sit back, relax, let the adjuster do his thing and see what they say. Why get worked up over an issue that may never develop? You may just be pleasantly surprised with the way the whole thing gets handled...if not then you at least know what direction you can go.

It seems to me that if you paid $11,000 for it and only drove it 250 miles since then you have a pretty convincing case right there for establishing its minimum value...nobody will want to argue with a straight face that the car depreciated substantially in 250 miles.

remotemark · #6 10-27-2007, 09:05 AM

Well, State Farm authorized the shop to spend $7500 on a "first ticket" with $2500 available supplements with backed up estimates. They're being a little coy about what the driver's policy limits are. I'm now just worried that the bill will get to ten k and then more will be needed but they won't pay. Then I'll have to go to my comprehensive policy and its deductible. Anyway, NHDoc is right, I am good at imagining the potential problems.

nhdoc · #7 10-27-2007, 05:37 PM

Quote:

Originally Posted by remotemark

Well, State Farm authorized the shop to spend $7500 on a "first ticket" with $2500 available supplements with backed up estimates. They're being a little coy about what the driver's policy limits are. I'm now just worried that the bill will get to ten k and then more will be needed but they won't pay. Then I'll have to go to my comprehensive policy and its deductible. Anyway, NHDoc is right, I am good at imagining the potential problems.

I really don't think you have to worry...they admitted fault and have authorized repairs...it was their call to total it out before the repairs began and apparently they felt it could be fixed for less that it was worth before the accident. It's questionable to me whether that is prudent or not since you paid $11K for it and they are basically now committed to $10K to fix it but who knows...time will tell if it even gets to $10K.

If the shop keeps finding stuff to charge them for I don't think they can just decided to "stop paying" and stick you with it at this point. Again, wait and see what happens...hopefully you have a collision shop you feel comfortable with and who does good work. Just make sure it gets fixed correctly and you are satisfied with the job. Typically the insurance company will need to approve any additional charges, just make sure they do that should any come up and you should be good to go.

Since they admitted fault they have no basis to stick you with any liability now...in fact I hope you are getting reimbursed for a rental car while yours is out of commission. You'd typically be entitled to that too.

You're really talking nickels and dimes to them...they are so relieved when an accident doesn't end up with an injury that property damage claims are usually handled fairly well routinely. They would take a different stance if you were seriously injured because that could cause them serious money. An extra $1000 to fix your car is not a problem for state farm...

Educaid · #8 10-27-2007, 10:43 PM

I wouldn't want a car that costs as much to fix than its worth. Tell them that if it costs more than 11k to fix it that you want them to pay for it or you want them to total the car for 11k. Then warn them that if the car is not fixed after they put 11k into it that you will have to sue them to finish the repairs. They won't want to take the risk and will probably total the car and you'll get your money back. You can then take the 11k and buy another one, if that's what you want to do.