Help PLEASE!! Auto Insurance Question?

Question

I have a question concerning auto insurance. I recently totaled my vehicle at no fault of my own. Long story short the insurance company is offering me a few thousand more than Kelly Blue Book states the vehicle is actually worth. But what they’re offering is substantially lower than that which is outlined on the Declarations for Policy paper under value. Thing is, I’ve verbally accepted the amount over the phone. Now they’re sending papers to sign over the vehicle. When I phoned the agency, I was informed by the assigned adjuster that he cannot offer more. I don’t really believe him, afterall insurance companies are known for trying to take advantage of people. Here’s the dilema, if they’re offering more than KKB and under the value on the policy. I assume they’re just trying to avoid paying what the real value is. Any help with this will be greatly appreciated. I have little knowledge in this, I just turned 22 years old and this was my first car.

Answer 1

I'm going to combine what the first two people have told you and then add a little more.  If you have a regular auto policy which you do, the policy maximum is the fair retail value for your car.  I'm not sure what numbers you are referring to.  If the other person was at fault, then unless you had a policy limits issue, you would not know how much money they have available.   If your looking at your policy, them you are likely looking at your PD limits which will only come into play if you cause damage to someone elses property.  

Next, in regards to Kelly Blue Book.  I spent 15 years as an adjuster handling auto claims.  I once never paid off the Kelly Blue Book.  Personally, I felt the amount was too high.  The industry for years has not recognized KBB as a viable source for selling cars.  Used Car  Dealerships like to reference them when selling cars because they are high.  They also like to use the NADA  when you trade the car in because it is lower (and typically more accurate).  Therefore they get a greater margin of profit.  I had a roomate that sold cars for Cadillac and understand the business.  

I would recommend securing values from KBB, NADA, Edmonds.com.  I would also look at Auto trader.com and call a few dealerships.  Tell them what type of car you had and have them tell you how much it was worth.  Have them put it on their letterhead and if the amount is more, present it to the insurance company.  The insurance company knows that KBB is not the "holy grail" for determining vehicle values.  They are hoping you will be lazy and accept what they are offering.   Now keep in mind, when talking with the dealerships, the more money they can get for you, the more you will have to spend. making it easier for them to not negotiate on your next car.  If they are way out of line be honest with the information they are presenting you.  Also, find a few local car dealerships that may have something very similar to yours and present that as well.  If you want to persuade the adjuster be honest.  If you car was below average don't ask for above average price......again, they are wanting you to be lazy....do your homework.....and good luck..

Keep in mind also, if you are going thru the other persons carrier and don't like what the are offering, you can always go back to your insurance company (if you have collision coverage) and see what they are willing to pay....your insurance company will go back against the at fault carrier for your deductible and what they've paid out.  Don't be afraid to ask the at fault carrier for your deductible on the front end.  Some might not have a problem with doing that.  I typically did as long as the person making the claim was respectful and honest with me and we agreed to disagree......

addendum:  I read your additional entry.  A stated value policy on a vehicle is typically one that is taken out on a car that will appreciate over the years.   It's like a life insurance policy but for your car.  If you have a loss on a state value policy you still have to prove the value to get that amount or they will pay you ACV.   You also appear to be in a good position with your car since your dealing with UM coverage.  Most states, you can't sue the insurance company directly under normal circumstances.  Since your dealing with a contractual issue, you would be suing your insurance company directly.  Final word of thought, most personal injury attorneys won't take your case against your carrier for just property damage claim.  You will like have to pay counsel to handle your case which in turn will net you less money.  The insurance company kinda has you over a barrel right now.....do your homework.

Answer 2

"Real value"?  The KBB price IS the "real value."  The "Dec Page" lists coverage LIMITS - it is not a promise to pay the maximum coverage regardless of the actual loss.  No insurer will pay more than ACV of the loss.

Answer 3

WHICH valuation clause does your policy have?  The STANDARD is actual cash value - likely what they are offering.  It's going to be private party resale value, considering condition and milage.

But you refer to a value listed on your policy.  A second valuation is called STATED AMOUNT.  I NEVER EVER sell this, because what stated amount means, is that you pay based on a stated amount, but if the car is totalled, you get the LESSER OF the stated amount, or actual cash value.

The third amount, which I've only ever seen on collector cars, is AGREED VALUE.  That means you state the amount, and the insurance company agrees that's what the car is worth.  No quibbling.  

So.  Take a look at your policy.  WHICH VALUE is it?  ACV, Stated Amount, or Agreed Value?

BTW, you should be discussing this with YOUR AGENT.

Answer 4

Ok, I think you're very confused. If they're willing to pay more than the retail value, consider yourself lucky, hush up and take the money!!

The declarations page NEVER says how much you'll get for your car. Are you talking about your Property Damage limit? That is the MAXIMUM that could be paid out. That does not mean what you'll get.  

If KBB is what they use to estimate the value of the car, that's what you'll get. Sounds to me like you're dealing with a very fair insurance company.

Answer 5

You are lucky, if your insurance is paying you more than KBB price. You definitely have a good insurance company.

Take the money get a new car and have another insurance policy from same company.