Insurance Company Totaled Car, Now wants to Change Offer?

Question

Our 93 Saab was rear-ended and we did not get the other driver's insurance information. The bumper appeared intact, undamaged except for some scuff marks, though slightly shifted. What was damaged, however, was the gas tank which began leaking after the collission.

We contacted our insurance company to report the accident and file a claim; we wanted the gas tank replaced, and wanted the car checked for frame damage, or other non-visible damage.

The car was towed by the insurance company to their authorized repair center. The repair center prepared an initial estimate to replace the gas tank and do "body work" and "painting" to repair the car.

We told the insurance company no body work was needed, nor painting, and only the gas tank was required.

The insurance company insisted the car was damaged, and that it would be totaled due to the car's ~$2000 value, and the likelihood that further damage would be found once the bumper was removed.

We spoke to the adjuster who supposedly viewed the car, he stated that it appeared the rear-body panel was damaged behind the bumper assembly, and it was his opinion the car was a total loss.

Again, we protested, and told the adjuster the bumper didn't appear damaged to us, that they could deduct the cost of painting the bumper, etc., from the estimate, and just replace the gas tank.

This went on back and forth for a week, at least, until the adjuster agreed to install a used gas tank if further damage was found.

We agreed, the car was disassembled, and the body shop compiled a new estimate for a new rear bumper assembly, new gas tank (they would not install a used tank), painting, gas tank straps, fuel hose, etc...

This new estimate exceeded the value of the car and we were told the car was a total loss. Again, we protested and insisted that we didn't think the bumper was necessary, but that we found used parts totalling $465 shipped that would bring the repair cost to less than a total loss repair.

The insurance company refused and refused to allow us to repair the car ourselves (I am handy with cars). They also stated that even if we withdrew the claim, they would report the car as a total loss to the State of Florida and our title would be revoked.

We protested and they said that the car is a total loss, talk to us if you can find someone to repair the car cheaper with used parts. We contacted an independent saab mechanic and they said liability issues would prevent them from installing a used gas tank, and they recommended against having anyone do this.

At this point, we calculated the cost of purchasing another 93 Saab 9000, and it didn't make sense as we have invested over $5000 in our Saab over the last few years, including installing a brand new transmission. What made sense was buying a used Prius, and using the gas savings to compensate the interest.

So, we negotiated a final settlement with a total loss value plus we would keep the car and the salvage value was waived. We figured we could always repair the vehicle with salvage title, or sell it to someone else who wanted to replace the gas tank and bumper and have an otherwise excellent Saab.

We agreed to the settlement and were told we would receive fedexed paperwork the next day, and were told we only had a few days left on our rental car. That day we put a deposit on a used Prius as there were 15 buyers behind us, and received the car back from the auto body shop.

Over the weekend, while we awaited bank funds to finalize purchase, we inspected the Saab. There was no damage to the rear-body panel, and no damage to the inner portion of the bumper assembly. Further, the auto body shop had failed to return nuts and bolts, and had damaged the fuel feed line. We also learned in the State of Florida once the car is declared a total loss (over 80% of value), that it could not be repaired to be driven.

On Monday morning we picked up our Prius, finalizing payment, and contacted the insurance company to state that the body shop and adjuster had mis-represented damage and that we never received settlement paperwork.

We stated we were fine with the settlement, as long as the title would be corrected to a "repairable title" vs a "certificate of destruction".

The insurance company said they would send an independent appraiser to verify damage and get back to us.

The independent appraiser arrived the next day and viewed damage. He stated there was no damage to the car other than the cracked gas tank (from force of impact), and that body shop had inflated damage.

His repair estimate, with used gas tank, was $498, $2 less than our deductible.

Insurance company wanted to deny claim. We protested, and claims person read file and realized the problem.

They have now withdrawn the settlement offer and are giving us three options:

1. repair car and waive deductible

2. total vehicle (minus deductible) and retain vehicle

3. total vehicle (minus deductible) and sell back the car at $800 salvage value.

What are our rights here? We fought for a month to convince the insurance company the auto body shop and adjuster were inflating damages. We were told the car would be totaled by State even if we withdrew claim. We were told we were running out of rental car days. We purchased a new car due to the position we were put in, plus stress of fighting insurance company for a month.

It's nice of the insurance company to fix the car and waive deductible, but we just spend $23K on a Prius plus $1500 tax and tag.

Naturally, they didn't force us to buy a Prius, but what do we deserve here?

Your thoughts, we just want a fair settlement.

Answer 1

If I am understanding you correctly, I would certainly take option 1; If They will waive your deductible and fix the car, you would be making out like a bandit.  Would the title be changed to a Salvage title?   As for the Prius, since they are such a hot seller, you would have no problem selling it even making some money on the sale.  I'm guessing that your  older Saab that  is more valubale to you to use and drive, than it is for re-sale.  why should you be concerned if you end up with a salvage title?  

Answer 2

seems like you got what you asked for.  why are you complaining?

Answer 3

There are so many things wrong with what took place but that has already happened and is not your question here. I would agree with prior reply, option 1 seems like your best option at this point. You can have the vehicle put back in it's $2000 pre-accident condition and sell the vehicle for that amount. You were ready to accept your vehicle as a total loss and this is why the new vehicle was purchased. The insurance company would have paid the $2000 value less your $500 ded or $1500 (but would have included taxes, title fees, tag fees, etc). But still, the amount probably would have been slightly less then $2000 due to your ded. Doing this puts you back into the situation you were in when you were going to have the carrier total out the vehicle.

Again, from what I can see the insurance company made a _ton_ of mistakes and was not willing to give an inch when they could have easily given a mile. Also, I don't see that you did anything wrong here.

Answer 4

The offers they gave you are very fair.

By law - they can not total the car and give you a repairable title.

Also - if they went along with your plan - totaled your car but lied to the state and gave you a repairable title -- the person you sold the Saab to - gets it fixed - gets into an accident with it -- finds out about its possible total loss history -- then turns around and sues the pants off the insurance company.

They are not going to break the law.  They are not going to risk getting sued because they broke the law.

It sounds like they sent the IA to inspect the car after making the total loss offer b/c you continued to push the issue. You should have - taken the money, kept the salvage --- towed the Saab to the nearest scrap yard and sold it for scrap - pocketed that money - driven around in your new car and gotten on with your life.

Sorry -- but it sounds like you created this problem.

Here's what I'd do -- call a scrap yard. Find out how much they would give you for the car as scrap. You may also want to call a used parts dealer and see what they would give you for the car.  At that point, is it better to keep the car and sell it as scrap/parts or sell the car back to the insurance company.  The Saab is 15 years old -- you got your money out of it.   It did what you paid for it to do.  Then drive the Prius until the wheels fall off.  

EDIT: true some states award triple damages on bad faith suits. However, you do not have a bad faith situation. There was no bad faith committed.

What you were asking for is illegal. You wanted the insurance company to give you the money for a total loss but to lie to the state - write an estimate for less than a total loss so it was not actually a total loss. You wanted the total loss money but not report it to the state as a total loss.