What is a fair insurance settlement for a wrecked scooter?

Question

My husband was rear-ended on his scooter. The other driver has accepted responsibility and their insurance company is ready to settle. They offered high blue book, which is not current market value (I found ads at a number of dealers with higher $$). Also, they did not offer anything for loss of use. The only place in town that rents anything comparable charges $100 a day, plus insurance. My husband just bought the (used) scooter last October and the insurance company is offering 25% less than what he paid for it. I've countered with copies of current listings, as well as the quote from the rental company. No reply from the insurance company (but it's only been a day.) What is fair here?

Answer 1

The insurer only has an obligation to pay the MARKET value of the scooter, not new price. Find comp. units (used) for sale in your area and use that for a guide, NOT new scooter prices. If you can actually show the adjuster that the bike is worth more than he's offering then they will pay. No insurer is going to pay someone $100 a day for ANYTHING, especially when a car can rented for $29.00 a day. They don't owe you for insurance coverage so forget that. Try and settle on a reasonable rental amount and keep an open mind about the value of the scooter at the time of the accident (mileage plays a HUGE factor in value). If you don't accept the offer then they will NOT pay any rental (standard procedure). If you feel like you simply cannot deal with the adjuster then ask for his/her manager. Do this until you get a satisfactory answer about the settlement offer.

Answer 2

I'm very sorry to hear about your hubbys accident, however one thing people don't realize is that insurance companies do not typically pay the best. One thing to your benefit is that the other company has accepted liability. If you are not in a hurry to get your check--do not settle. You have a right to get a fair price. I would also continue to pursue the rental issue. It is the insurance companies job to provide you with a vehicle comparable to the one you were unable to use as a result of their insured. Remember you did get some use out of the scooter, so you want to be fair, but don't feel like you need to accept the first offer. Good luck!

Oh and by the way, if you are really unhappy, I would say go thru your insurance and pay your deductible. The insurance companies will then work it out with each other and you will eventually (usually not more then 4 months) get your deductible back. This should not be your first option, however it is an option.

Answer 3

It's sounds like you're doing everything right. You can also point out that since the price of gas is going through the roof, scooters are commanding  higher prices that are not yet reflected in the book values. I doubt they'll agree to $100 per day loss of use (You can rent a whole car for $25 p/d) but it's an excellent negotiating point.

You may not get exactly what you paid for it (it's 8 months older than when you bought it) but keep talking to them and you should be able to work something out. Be persistent  but polite.