Looks like if I want to add it to my policy with $30,000.00 value and 5k miles a year, it would run me $900 a year. Definitely thinking of doing this!
Got hit and insurance wants to salvage my TJ
- Thread starter myjeep3
- Start date
So they are saying $6.6K or $3.9K if you keep it. That means they are valuing your Jeep at $6.6K and it's totaled residual value of $2.7K. Meaning they will give you $6.6K, for the Jeep and you can buy what remains back for $2.7K. This nets you $3.9K.
The problem here is the valuation of $6.6K. It is completely wrong for a fully restored Jeep. They are taking the low mileage Jeeps and subtracting for your current mileage. This is no way correct for your restored Jeep and you should push back on that number. Don't spend too much time on the buy it back for $2.7K. Focus your negotiations on the value of the Jeep before the accident. They say it's $6.6K. That's bullshit for a fully restored TJ!
The problem here is the valuation of $6.6K. It is completely wrong for a fully restored Jeep. They are taking the low mileage Jeeps and subtracting for your current mileage. This is no way correct for your restored Jeep and you should push back on that number. Don't spend too much time on the buy it back for $2.7K. Focus your negotiations on the value of the Jeep before the accident. They say it's $6.6K. That's bullshit for a fully restored TJ!
Vtx531
TJ Addict
Sorry didnt read through every post but:
Car insurance is a state law. I just went through this in Michigan which will be different than MA but should be the same general idea. The percentages might be a little bit different. (The following is all my experience a couple months ago in MI)
1. They are required by law to declare total loss if the cost of repairs exceeds 75% of the value of the vehicle. You cant tell them or ask them not to. It would be illegal. So the title of this thread “Insurance wants to” is a bit misguided because they have zero choice/decision/wants/desires as far as that part goes.
If total loss...
a. You can buy it for scrap value if you want
b. If the car is less than 7 years old, they are required to apply for a salvage title. Otherwise you should be able to keep the title clean. Probably still show up on carfax as a total loss vehicle.
c. If salvage title, You have to get it repaired and you cant drive it until repaired and inspected and then you apply for a repaired title
2. They are required by law (as everything here) to declare total loss and apply for scrap title if repairs exceed 90% of actual cash value. This means it can never be registered on the road again. Only for parts and scrap metal recycling.
3. As for the actual cash value, I have liberty mutual and they used a third party company whose job is to value cars. That company uses proprietary software to compare to similar vehicles and make adjustments based on mileage and options. It is very similar to a house appraisal or comparative market analysis.
4. My own opinions and experience: You can try and push back a very little bit on specific things for the cars value but I found they are not willing to outright negotiate. At the end of the day you are going to have to agree and accept their calculation unless you want to take them to court which costs a lot of money and of course they are experts at this and their legal team. There might be arbitration clause in the insurance or a clause that you pay their legal fees so this isn’t a very good option. On top of that, it would be hard to argue against the professional valuation company and would require expensive expert testimony. If you have to take time off work it makes it even less worthwhile. Plus the stress..
Car insurance is a state law. I just went through this in Michigan which will be different than MA but should be the same general idea. The percentages might be a little bit different. (The following is all my experience a couple months ago in MI)
1. They are required by law to declare total loss if the cost of repairs exceeds 75% of the value of the vehicle. You cant tell them or ask them not to. It would be illegal. So the title of this thread “Insurance wants to” is a bit misguided because they have zero choice/decision/wants/desires as far as that part goes.
If total loss...
a. You can buy it for scrap value if you want
b. If the car is less than 7 years old, they are required to apply for a salvage title. Otherwise you should be able to keep the title clean. Probably still show up on carfax as a total loss vehicle.
c. If salvage title, You have to get it repaired and you cant drive it until repaired and inspected and then you apply for a repaired title
2. They are required by law (as everything here) to declare total loss and apply for scrap title if repairs exceed 90% of actual cash value. This means it can never be registered on the road again. Only for parts and scrap metal recycling.
3. As for the actual cash value, I have liberty mutual and they used a third party company whose job is to value cars. That company uses proprietary software to compare to similar vehicles and make adjustments based on mileage and options. It is very similar to a house appraisal or comparative market analysis.
4. My own opinions and experience: You can try and push back a very little bit on specific things for the cars value but I found they are not willing to outright negotiate. At the end of the day you are going to have to agree and accept their calculation unless you want to take them to court which costs a lot of money and of course they are experts at this and their legal team. There might be arbitration clause in the insurance or a clause that you pay their legal fees so this isn’t a very good option. On top of that, it would be hard to argue against the professional valuation company and would require expensive expert testimony. If you have to take time off work it makes it even less worthwhile. Plus the stress..
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Vtx531
TJ Addict
Yea - I don't know as I'm a recent transplant here. How much force of law does this have? I was able to fight back and win against this nonsense in Commiefornia in 2011, but if the InsCos have a "bigger stick" here with bought and paid for laws, then I'd be SOL in similar circumstances.
still waiting. i declined their offer, they asked me to find 2 other jeeps to compare with, I did, and they rejected them saying the price is higher then market value, LOL.
In these cases who to sue for the difference, the insurance or car owner? just curious.
In these cases who to sue for the difference, the insurance or car owner? just curious.
Not that I'm advocating this, but...
Years back, a neighbor had a similar problem - don't remember the details. Went to a lawyer who placed a phone call to the InsCo while he (the neighbor) was in the office. Told them something to the effect that "My client, Mr. xxxxx, needs his car fixed. I suggest you fix it and get this claim signed off before any delayed medical problems surface..."
End of problem. Sometimes you have to fight fire with fire.
For the amount of money involved, it wouldn't be worthwhile to sue. Without injury, you'd be hard pressed to find a lawyer to even touch it. Injuries are where the money is. Unless you personally know someone who will essentially do it for free, it'll likely cause you more money, time and aggravation. Don't take this the wrong way but a lawyer friend once told me one of the reasons they are rich and are in business is because of people pursuing what equates to moral victories...the lawyer is the only one who actually makes out in the end. People will spend more on lawyer fees to prove a point/get the win than it's actually worth. That's why there are settlements...keeps the lawyers out of the middle and benefits both parties in the end.
I completely agree with @Zorba on the attorney threat call.
Also, their market value is taken from a bunch of rust buckets in MA. Show them comparable fully restored or lower mileage rust free examples. If they don't like those, have them show you some examples similar to yours. Send them photos of the undercarriage and body after your work was done.
Have you talked to your Insurance Company? They may be able to help you. And, they may be able to help with an arbitration instead of a lawsuit.
To answer your question, you will typically sue the driver or owner of the car, but like above (@GeorgeB), only the lawyers win with this size claim.
Also, their market value is taken from a bunch of rust buckets in MA. Show them comparable fully restored or lower mileage rust free examples. If they don't like those, have them show you some examples similar to yours. Send them photos of the undercarriage and body after your work was done.
Have you talked to your Insurance Company? They may be able to help you. And, they may be able to help with an arbitration instead of a lawsuit.
To answer your question, you will typically sue the driver or owner of the car, but like above (@GeorgeB), only the lawyers win with this size claim.
Unfortunately when it comes to any sort.of insurance, many do not know what they have until it's needed. It's a buyer beware game. Generally speaking, "retail" insurance companies like State Farm, All State, Progressive, etc. use the underlying assumption of market value of an OEM equipped vehicle when settling a claim. That's because if an OEM vehicle is worth $10K and you put on $10k of modifications, they won't base the claim on $20k because you've only been paying premiums based on the OEM value. Anything above and beyond you need a "boutique" policy like Haggerty that has been mentioned to insure up to the true value.
It's always a good idea to sit down with your agent every few years to review your coverage and make sure it's relevant to current conditions. Homeowners for example, you set the value of the home on the day you execute the policy. You live in the house for 10 years and market values have increased by 15%. You have a total loss from a fire and now.you find that you've been under insured all this time. On top of that, you find out you were only paying for depreciated value vs. replacement value. You're screwed. Same for jewelry, a base policy will cover jewelry up to a nominal amount. Anything above that amount you need to have written into the policy and.pay additional premiums for that additional coverage. You had a sports card collection...out of luck because a base policy won't cover it...should have had a separate policy on it all along. For auto a classic example is lost wages due to injury. Once again you set the base policy years ago and in the meantime you income has risen but you're not covered up to that level...screwed again.
Be extremely careful with the companies like the General, Liberty Mutual, etc. that promote state minimum requirement policies. They will carve out individual pieces of coverage to lessen the cost of the premium. The problem is that you have an accident and your policy is stripped down and won't cover the.damahes/injuries. You'll end up.losing a lot more than the money saved on the annual premium reduction.
It comes down to that old saying ....you get what you paid for. Always know the details before signing the bottom line.
It's always a good idea to sit down with your agent every few years to review your coverage and make sure it's relevant to current conditions. Homeowners for example, you set the value of the home on the day you execute the policy. You live in the house for 10 years and market values have increased by 15%. You have a total loss from a fire and now.you find that you've been under insured all this time. On top of that, you find out you were only paying for depreciated value vs. replacement value. You're screwed. Same for jewelry, a base policy will cover jewelry up to a nominal amount. Anything above that amount you need to have written into the policy and.pay additional premiums for that additional coverage. You had a sports card collection...out of luck because a base policy won't cover it...should have had a separate policy on it all along. For auto a classic example is lost wages due to injury. Once again you set the base policy years ago and in the meantime you income has risen but you're not covered up to that level...screwed again.
Be extremely careful with the companies like the General, Liberty Mutual, etc. that promote state minimum requirement policies. They will carve out individual pieces of coverage to lessen the cost of the premium. The problem is that you have an accident and your policy is stripped down and won't cover the.damahes/injuries. You'll end up.losing a lot more than the money saved on the annual premium reduction.
It comes down to that old saying ....you get what you paid for. Always know the details before signing the bottom line.
Very nice post. Something else to consider on homeowners... Water in the basement. A general policy only covers a certain amount of water in the basement (mine was only 3"). I have a sump pump and live in a high water table area. I have an additional rider to pay for up to a foot of water. It's time to review that policy again. Plus... You guys with shops... Contents typically are not covered on out buildings, so all those expensive tools your accumulating will be gone. Anything with an engine is not covered... So that 10,000 dollar zero turn is a total loss with no recovery.
There is a reason all the biggest buildings in a down town area are banks, insurance, and lawyers.
I just don't see this as the case here. They hit you and damaged your vehicle. How much insurance and what type you have doesn't apply. Therefore, they have to make you whole regardless of the insurance you carry. The person who hit you may have a very small policy and that could be a problem. It would mean that the vehicle owner will have to make up the difference. However, I cannot speak to a "no fault state". I would strongly recommend you speak to an attorney regarding your specific case and your state's laws.
I think it's time to get your insurance company involved. See what they say about fixing vs totaled. If you still want it fixed over salvage I would get some estimates together using your insurance. I'm surprised it would cost that much to fix the damage you have. I feel like if you went to a specialized 4x4 shop and talked to them about how you want to keep the jeep they could put a better estimate together than some random body shop. They would also know what parts to double check for damage.