What do you do when the insurance company will not pay you what your car was worth before it was destroyed?

Question

My mothers garage was destroyed in the recent tornado in Missouri, the adjuster came out the following Saturday and offered her $2000.00 less than the car is worth. First of all I doubt he is even licenesed in the state of Missouri as he made the staement that he didnt know Missouri law and was from Wichita. I am pretty certain as a hairdresser and her as an appraiser, know that we both had to know the laws regarding our professions and if he doesnt know the law of Missouri how did he get his license and pass the state exams? I have done tons of research but am still uncertain as to what to do to get the insurance to settle appropriately. She has had insurance with this company for years and has never filed a claim.

Answer 1

Sue them!

Answer 2

first id try talking with another adjuster and if that dont get your the answer then a lawyer

Answer 3

You have a State Attorney General's Office or a Insurance Licensing Office. Arbitrate with the insurance. Get a lawyer.

Answer 4

These situations are always fun after a storm but they are something that can be resolved.

Let me tackle a an issues before I get to the value stuff. These storm claims are called CAT (short for catastrophe). When they occur companies will bring in adjusters from other areas so they can get cars and house inspected quickly. The guy who appraised the car doesn't need to have a license because Missouri does not require adjusters to be licensed.They should but they don't. And to be honest with you he doesn't really need to know the laws either. He just needs to be an expert at appraising car damages and evaluating total loss damages. His inspection report should have been given to a Missouri adjuster to settle the claim with your mom since they would know the laws that would apply to the claim. If that didn't happen then your company shouldre-think their processes.

First off, everybody thinks their car is worth more than it is. Everybody, even adjusters. Here is what I suggest.

1. The biggest hurdle you have is proving your car is worth more. just thinking or feeling it is worth more doesn't cut it and it certainly wouldn't work in arbitration or court.

2. Your mom, not you, has the right to see whatever documentation the company used to put a value on the car. Most companies use CCC reports which are computerized reports based on actual cars sold, not just a book price. The report should show real cars sold and their "selling price" NOT the "asking price." If she doesn't have a copy have her get one ASAP and read it over. She will learn a lot from it. Make sure it shows the correct mileage and options.

3. You said you did tons of research. That is the key to getting more money. Find other cars for sale and compare them to the figures the company came up with. Remember that what you will see is the asking price so that will be higher than what the cars you find will actually sell for. This will give you an idea if the value from the insurance company is legit or not.

4. If she comes up with good documentation then your mom should call the insurance company and ask to talk to a manager. She needs to be polite and professional. No yelling etc that will get her nowhere. She should not tell the manager that she has been with the company for years and never made a claim. That means nothing at all. Sorry, but that is the truth.

Good Luck

--EDIT--

If she has good documentation then she should check her policy to see if it has an "appraisal clause" in it. If it does, she can request that process in writing to help resolve this claim. It's a pain in the butt process and she will have to hire an auto appraisal expert to help her, so there is cost involved on her part.

Answer 5

First things first your only gonna get the Kelly Blue Book value of the car. If what he offered is less than that, there should be a government office he is license with. You should be able to file a report with them. Good Luck, I often wonder with all of these natural disasters, if insurance companies are going to start voiding us out. When it comes to the all mighty dollar nothing amazes me anymore.