I have USAA, generally regarded as an outstanding insurance company.
I had an item stolen a few years back. After my deductible, they covered the cost of the item (nice road bike) MINUS depreciation based on age and wear/tear. They reimbursed the depreciation only if I replaced the item, not if I just took the cash payout.
Could be similar for cars.
TURTLE wrote:
First, it makes a difference if you are dealing with your insurer, or the insurer of someone who hit you. Since you give no indication that anyone else was at fault, it will be your insurer you will be dealing with.
They will ask you if you intend to replace the vehicle. That affects the amount they will pay you.
Buried in your policy is a description of what value they will place on the vehicle. Look that up, and go to some of the web sites that give such information. Bear in mind that this can vary with your location, and with features of the car. Look on the website for features that increase the value, and be sure you meet with the adjuster and point out all of those features. You won't have to point out the high mileage; he will find that himself. Give him a copy of your spreadsheet as an indication that the car was well maintained and in very good condition.
Most companies will pay the fair market value of the car, less any deductible, plus any costs you will incur in replacing it (if you told them you intend to replace it), such as sales tax on the FMV, and any title transfer or licensing fees you will incur.
You can also probably keep the car itself for a very nominal cost if you want to buy it from them and repair it, but you will then have to get a salvage title.
If you don't like their offer, there is probably an appeal process described in your policy, but you might have better luck talking to your insurance company, giving your reasons, and asking for a reappraisal.
All of this could vary with where you live and who your > My husband wrecked our 1995 Ford Explorer Sport last night on the ice. He
Look in the local papers for a comparable vehicle and that should get you in the ballpark. When this happened to me they offered me about 65% of what the vehicle was worth. I called them back and told them to look in todays paper and rethink this or get me the exact replacement vehicle. They called back with a full settlement. I don't know what state you are in but in California you can require the insurance company to get you an exact replacement.....Good Luck and watch that ice....Ross
You need one of those bumper stickers that are placed upside down that read "If you can read this, flip me over"....Glad you were OK....Ross
Thanks.
Having this happen to me...totaled the car, where the ex was at fault..anyway, one thing to remember is that you were in an accident and aside from the car, you may have suffer some harm. Hopefully not, but the insurance company will want to sign a waiver someplace along the line....do not do this until you have the property settled. We all know that bodily injuries cost the insurance companies much more.
Use this a bargaining chip in you talks.
John
Debbie, My daughter in law recently wrecked her 95 explorer that she bought new. The insurance gave her $7800. after they kept $1000 for her deductible. HTH, Kathy
Won't tell you much, the amount they will give you is pretty much a regional figure, the amount you pay on insurance can be highly local and individual. I assume you are looking to see what the value of the coverage was compared to the cost. The only part of the insurance that is relevant in that comparison is the collision part and maybe the comprehensive since there was a lot of glass damage. Liability, medical, and uninsured motorist may be mandated by the state.
I can give you an idea, I have a 1994 Explorer and currently the cost of comprehensive is 24.30 (full coverage) and collision ($100 deductible) is 42.60 each 6 months. Those costs have been close since 1998 when I bought the machine. So that is about $135 per year. Thats only $806 for 6 years, so if I totaled my machine, assuming I got $3800 I would be $3000 ahead. Or, another way of looking at it, is that my machine will be worth at least $2000 for as long as I have it, so I can pay those costs for nearly 15 years and break even. If you want to compare to having or not having the vehicle, it is very different since the required insurance part is nearly 150 percent of the collision and comprehensive cost.
Like I said, the costs are highly local and individual. A person in another city even with a good driving record could be pay 3 times what I pay. and I am sure some pay as little as 1/2 of what I pay.
This is Turtle.
the bic was a repair item called a part of the house. What you say comers into effect in replacing the Parts of the house or the parts of the car to be replaced. If they total a house or car a different set of rules come into play. If you repair or replace a part, item, section , or partical repaire of anything . Your words come into play but not on a totaling of a house or car. It it's totalled out. They just bought the whole house or car and the replacing of the whole house or car has no bearing on the replacement cost. Also you don't have depreation on the house because houses don't depreciate but grow in valve. Secondly. Depreciation only applies to house hold items and not on the house it'sself or a car. Please explain to me what or how you can depreciate the valve of a home or a car ? Home Appraisial valve is for houses and book valve is for cars. If you can sell the house or car at that valve to the public at that time. You can't depreciate it as being not worth the price it will sell for right now.
Let me put a deal together where your theory will not fly. My house burns to the ground and I have $40K worth of coverage and the house was valved at $100K and your short by $60K before You can build a new one. the bank will not loan me any money because of bad credit and will have to save my money up to make up the $60k to build a new house. It will take about 15 years to save up the money to build the house back. I will have to live in a apartment and pay rent till i save the money.
Now as you say the insurance company does not have to pay the full amount or not pay the depreation amount when there is NO depreciation of a whole house at all and because you don't build it back right now. You don't depreciate the valve of a whole house if it would have sold for that valve 10 minute before it burned to the ground.
if the item was a bic, lawn mower, fence, secion of the home / room, part of the house or house hold items they can depreciate it but if it is a whole house or whole car which has a set valve and can be sold at that time for the appraisial valve at that time you can't depreciate it.
TURTLE
*If* you elect to have the home rebuilt, replacement cost coverage will pay for that. If you don't you will be paid the actual cash value of the home. (In either case, you're out your deductible, and the maximum payout is subject to your policy limits.)
For example, one policy I have in front of me specifies, under Loss Settlement provisions for Dwelling coverage:
"When the cost to repair or replace is more than $1,000 or more than 5% of the limit of insurance in this policy on the building, whichever is less, we shall pay no more than the actual cash value of the damage until repair or replacement is completed.
At your option, you may make a claim under this policy on an actual cash value basis for loss or damage to buildings. Within 180 days after loss you may make a claim for any additional amount on a replacement cost basis if the property has been repaired or replaced."
Exact language will vary somewhat from carrier to carrier, but the concept is the same -- you get paid replacement cost if you replace something, otherwise you get actual cash value.
(Assuming of course that you have a replacement cost policy to begin with. Many homes don't qualify for replacement cost coverage due to condition, and they can only be insured for Actual Cash Value.)
Disclaimer: Unless you see my name on your policy declarations, I am not your insurance agent. Policy language varies by company, policy, and jurisdiction. Read your own policy and call your own agent if you need specific details of your policy.
| > I don't know of any wording in an insurance policy for a vehicle about | > replacing it if it is paid for. If it's in there it will surprise me. | >
| > A few years ago, I had put a car in a ditch. Since it was paid for they | > just gave me a check after the estimate was written. They never made sure | I | > spent the money on the car for repairs. I think they do that only if | there | > is a lien on the car. | >
| > Debbie | >
| >
3). | > | >| > | What does your policy say about paying up when you are not going to | > replace | > | the vehicle? I suspect that might make a difference in the settlement | > | amount. | > | | > | | >
| >
| | | Debbie, | My daughter in law recently wrecked her 95 explorer that she bought new. The | insurance gave her $7800. after they kept $1000 for her deductible. | HTH, | Kathy | | Kathy, Was it a 4-door Explorer or a 2-door Explorer? Was it 4-wheel drive? Debbie
This is Turtle.
You read repair section which is what I said and then total replacement section what was exactly what I said. So where is your point here ?
TURTLE
Wow! She got a good deal. I don't think I could expect anything close to that for my 4 door, 4wheel drive 6 cyl (don't think they made 8 cyl in 1994). At least I've never sold a car for anything near what I paid for it. (Paid $6,000 in 1998 at which time it had 25,000 miles , now has just over 40,000 miles).
That's pretty much what happened to me. Insurance offered a lowball value, we found comparables for several thousand dollars more, adjustor said "okay" and wrote the check. However, my car was only one year old, so it was easy to find several local comparables. Their first offer is always that - an *offer*. Even if they call it a "final settlement," it's just a first offer. Also, if they total it, they need to pay the price of the tag as well.
Tracy
If your house is a total loss, you don't get a check for the replacement cost.
If you want cash, you get depreciated cash value.
The insurance company only pays replacement cost if you have the house rebuilt, and then only after the construction is completed.
Update:
It is totaled but waiting to hear if they are going to up the amount -- I wasn't happy with the amount. I asked him if he had added the options that made the vehicle more expensive and he said they don't count those on older vehicles. My response was we pay for full coverage we should get full credit. He told me that he was glad my husband wasn't hurt and that you can always replace a vehicle ... my response "If you give me enough money we can replace it!"
Also, a lady from the insurance company called my husband to get the details of the accident. She asked about the lien on the vehicle. I told her that the vehicle was paid for in 1997 and that if we still had a lien on it after
10 years we're in big trouble. She said we could have refinanced it. She also told me that lien holders don't notify the insurance when it is paid off. I had her check our other vehicles and 2 of them still showed liens where there are none. One of them is a 1987 ATV! I called our agent to tell him to remove the liens so we don't have problems later. Just thought I would share that in case it might help someone else.Debbie
"DebbieG" wrote in news: snipped-for-privacy@individual.net:
I just had my 1996 Bonneville totaled by a dope who drove out in front of me on a nice sunny day. No other cars were on the road. He had a stop sign. Most of the repair expense would be for the air bags that both deployed. The car body wasn't bashed in that much but the crash caused structural damage in odd places such as around the windshield on the roof and also on the dash board. The hood was pushed up on the right side as well as the windshield being shattered.
Everyone keeps saying how old my car is. Well, I had it nicely maintained and it was an excellent running car that should have lasted many more years. I didn't have any scratches on it since I always parked far out in parking lots away from other cars.
I phoned my mechanic and he explained about the state law that requires a car to be totaled if the repair is a certain % of the book value. My insurance company gave me the highest it could. I had low mileage and it was in excellent condition. The other insurance company has to pay so my company I guess tried to give the most it could.
I sent my car title to my ins. co. and I should be receiving a check soon. Big deal. I still don't have a car and I'll never find a good one as I had (with the check I'll get). BTW, I'm now driving a 1978 truck instead. Talk about an adventure just to drive to the store. It has to be warmed up for at least 10 minutes or else it'll stall out attempting to drive too soon.
I was taken to the hospital by ambulance due to neck pain, and was released. The stupid part is the neck brace they made me wear for 5 hours bruised my jaw and throat. Damned stupid drivers that don't even look!! I even had daytime headlights for crying out loud. geesh! (there, i vented) Marina
If you have an older car in significantly better-than-average condition, you might want to ask your insurance agent about agreed-value coverage. Basically, you get your car appraised for what it's really worth in unusually good condition, rather than average market value for that make and model, and the insurance company agrees that if the car is ever totalled, they will pay that agreed value for your car.
It costs more, of course, but the more your car is worth, the more sense it makes to insure it to full value.
Agreed value coverage is most common for collector cars, but it can make sense for daily drivers, too.
Well, it's finally been settled. They started at $4,000 but I was insistent that wasn't enough. My husband hates dealing with stuff like this and would have agreed to their first offer so I take care of stuff like this. They came up in small increments every time I talked to them. They offered $4,400 so I called a Ford dealership to see what they thought it would be worth and the used car salesman thought that was a great offer. They finally came up to $4,750 but I wanted $4,850. My husband kept saying, "Just let it go" but I just couldn't. My parents said "It's only $100 ... settle already!" My brother said "I didn't know you could negotiate what an insurance company pays for a totaled vehicle. I'll remember that!" I think they were sick of me and finally agreed to what I wanted just to make me go away ... we got the check today!
FYI: I'm also the one that does the negotiations when purchasing a car. It's funny because when they come back with a counteroffer they always look at him and he just points to me and says "Talk to her." In fact the last car we bought, he went to look at it with me, we went back home to get some paperwork and he didn't want to go back so I went alone to finish the negotiations. His strengths lie elsewhere -- thank goodness opposite attract!
Thanks to all of you for your advice and suggestions. Debbie
HomeOwnersHub website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.