NT Is this why auto insurance is expensive?

[AnnieR]

On May 5, my husband was driving our (technically my) car when another driver ran a red light (made a right turn on red, but did not yield right of way) and hit the passenger side front wheel of our car. We found out how much it was going to cost us to fix the car..a '92 Buick Park Ave., excellent condition with 102,000 miles...$750.00. Adjuster came out, looked the car over and left. I got a call from the insurance co. (AIG-21st Century), he told me that the adjuster had judged the car to be in exceptional condition, low mileage, etc, and they were totalling it for $2225. I explained that all we wanted/needed was $750 for repairs plus a rental, that offer was turned down and told if we wanted any settlement we had to agree to total the car and accept the $2225. So, in order to get the settlement, I had to get a salvage title. The car is now being fixed, and we will have to get it inspected and make sure the parts we paid for were used and a new title issued. It cost AIG a rental car for 2 weeks, plus 2 towing bills, plus $2225, AND if we buy a NEW car, they'll pay the sales tax on it. Is this the bailout at work????

AnnieR

[jainen]

>>Is this why auto insurance is expensive?<<

No, it is not the reason--not a crumpled fender on an old car. Why, your claims adjuster probably got a bonus for saving the company so much money! When you described the settlement offer, you forgot to mention that you had to sign a medical release. No doctors or lawyers involved--THAT is why auto insurance is expensive.

[AnnieR]

>>Is this why auto insurance is expensive?<<

No, it is not the reason--not a crumpled fender on an old car. Why, your claims adjuster probably got a bonus for saving the company so much money! When you described the settlement offer, you forgot to mention that you had to sign a medical release. No doctors or lawyers involved--THAT is why auto insurance is expensive.

The fender isn't even crumbled and no, I did not have to sign a medical release. Gee, I missed that part!

Annie

[jainen]

>>Gee, I missed that part!<<

Oh yes, you missed it. Not that it matters to you--you weren't going to make a medical claim anyway because there were no injuries. But no insurance lawyer will sign away thousands of dollars WITHOUT a release.

Don't tell us they never said, "Thank God nobody was hurt." After you agreed, they never mentioned it again and offered you a full settlement of all present and future claims. You decided to take the extra money before they changed their mind, when all along they were praying to the God they had invoked that YOU wouldn't change YOUR mind!

[Kea]

In 2005 a driver fell asleep and hit the car behind me at a traffic light. That car hit me and pushed me into the car in front of me. I was driving a 93 Honda Civic Del Sol with 105K miles on it. The front and rear damage totaled around $4000 and State Farm wanted to total it out for $4200. Since the amounts were close I was trying to get them to raise the amount a few hundred $ to cover the recent paint job and the fact that the car had been in excellent condition. The agent told me that everyone thinks their car is above average. Sorry, in my case it was true. My husband was a body shop mechanic and always keeps all our cars in excellent condition. Anyway by the time I bought the car back from State Farm and got their check for the difference, I had to pay about $200 - 300 extra for the repairs. Then had to get a new license plate and new inspection sticker and a salvage title. But I didn't want to buy a new car - especially because I couldn't find one (at that time) that could get the 35 mpg I was getting on my then 12 year-old car. I'm still driving that car. It still makes me mad that through an accident that wasn't my fault I had to pay a few hundred $ to get my car back to it's previous condition - except for the salvage title. That is a very unnecessary decrease to it's value.

Good luck with your repairs.

[Gail in Virginia]

In Virginia, a car can be totaled just because of the monetary value of the repairs and the title will stay the same. My son just "totaled" our Chevy Tahoe. The difference between what State Farm would pay me to total the vehicle and what the repairs would have cost was fairly minimal BUT they would have had to guarantee the repairs as long as I owned the vehicle. I think that is what tipped them over to totaling the car. However, I talked to them about buying it back and that was an option. None of the damage was severe enough to warrant changing the title - I would have kept the same title as before had we chosen that route and done the repairs ourselves.

[mcb39]

Annie, the saddest part of this whole thing is that you "lost" a car that you really liked; in excellent condition, which cannot be replaced for $2225 (or probably any reasonable amount). Several years ago a lady ran a stop sign and "totalled" my Delta 88 Royale Diesel which had a brand new engine and a flawless body and interior. Because of the condition and the fact that there weren't any more around, her insurance company paid top dollar for my car; and let us KEEP the car. We put that new Diesel engine in my son's Olds Toronado and it is still running and now a collector car. We partsed the rest of it out and I didn't have another car that I liked as well for years.

Having a husband who has been in the car business for over 35 years; I know that you own a really top-notch, also irreplaceable vehicle and I feel your pain. I know it's a blessing that nobody was hurt and it is only a "hunk of iron", as many like to say, but to you it is like losing an old friend. This is life and we do get over these things, but that doesn't lessen the anger and regret that we feel at the time. I now drive a Jeep Grand Cherokee Overland which has finally topped the feelings that I had for that "old" Olds.

[jainen]

>>which cannot be replaced for $2225<<

This is also part of why insurance costs so much. You're in the car business so you know well how far above the real market owners value their old cars. At least here in California ancient Buicks in excellent condition but topping 100K miles can be easily acquired for $2225. That is obviously true in Ohio too since the insurance company thought (correctly) such a sum would encourage Annie to settle.

[mcb39]

>>which cannot be replaced for $2225<<

This is also part of why insurance costs so much. You're in the car business so you know well how far above the real market owners value their old cars. At least here in California ancient Buicks in excellent condition but topping 100K miles can be easily acquired for $2225. That is obviously true in Ohio too since the insurance company thought (correctly) such a sum would encourage Annie to settle.

In Wisconsin, it is pretty difficult to find a 92 Buick that isn't riddled with rust from the road salt. You can hardly buy anything even fairly decent for less than $2500 nowadays around here, but, of course, the region plays a big part. My demolished Delta 88 was purchased in Okla; hence the excellent condition. I wonder if insurance companies make regional adjustments. If Annie keeps the repaired car until it dies, she will be fine. However, trying to sell a car with a salvage title (at least in WI) opens another entire can of worms., especially for a dealer.