Frequently Asked Questions!

What is Diminished Value and how do I collect?
What is considered fair market value for my car?
Why wasn't my car totaled?
I didn't do all the damage the other guy is claiming! How do I prove it?
It worked before the accident! How do I prove it's related to the accident?
I'm a young driver. Why are my rates so high?
Can the insurance company allow  used parts for my car?
What is a computerized value?
How much is my car worth?
Which car model is best that I am looking to buy?
How do I get the best rate?
They totaled my car. Now I can't get it back!
My car has a factory paint defect, what recourse do I have?
I think my car had a recall, but when and for what?
I am buying a new car. Has it been crash tested?
How do I file a claim with the insurance company and get what I deserve?

Consumer Input by Debra

I recently wrecked my car and the damage was substantial and at one point I verbally agreed to total the car. I changed my mind and now the salvage yard refuses to relinquish my car because they say that they paid for the storage and the towing. They do not have the title nor have they been paid by the insurance company. I do not want to total my car and both my insurance company and the salvage yard refuse to release my car. Incidentally, the car, supposedly totaled, was driven out of the salvage yard by the owner to his own home where it has remained. My plates are still on the car. The insurance company has given me an ultimatum that I have to decide today what I am going to do and sign over the power of attorney and that is that. Help!! I feel like I am being taken to the cleaners. Should I hire an attorney?

Response by Norm Wetzel

Its difficult, but not impossible to reverse the path of a claim settlement once it is put in process as certain commitments and obligations are made by the interested parties. In this case once you agreed to a total loss settlement the wheels started turning. However, as long as you did not relinquish the title to anyone you are still the legal owner of the car. Your statement may have now obligated you to paying the reasonable charges your actions triggered but they should only involve reasonable storage charges over and above what the insurance company would have paid based on a total loss settlement which is usually 5 to 7 days. The towing, at least that portion, from the accident to a repair facility is still their obligation. You may have to pay towing from the original site to the present storage facility as you triggered that action. I would strongly suggest you get your agent involved as they should be sensitive to your desires and also be able to advise you,based on the terms of your policy, what your rights are. Whether you want your car totaled or not at this point is not an option. If the damages plus the salvage equals the value you car it would qualify as a total loss and the company could care less what you want unless you can prove the vehicle is worth enough to qualify it as repairable. However, if you want to retain the salvage as the vehicle owner they cannot deny you that, unless it is spelled out in your policy or is a matter of state regulation. Your agent should be able to advise you on this. Hiring and attorney, in my opinion, will not help you as you are dealing with a contract you agreed to when you paid your insurance premium.

Consumer Input by Brian of Canada

We are about to purchase a 1998 vehicle, and it is also our first vehicle. The question is how does an insurance company determine the value of the car as opposed to the dealership, or for that fact, the going market? What can we do to get the best insurance rate, besides our driving record? I know being from Canada will make this difficult, but we our just looking for a couple of tricks of the trade in the car business.

Response by Norm Wetzel
Brian: Although you did not state it, why do I get the feeling you are going to buy and insure a car in the states versus Canada? Canada is so regulated I will assume I am correct. As far as valuation is concerned the insurance companies in the states settle losses based on "market value" and in some cases on "replacement value" of the vehicle insured. In either case if you purchase
a new vehicle you cant get hurt to much until this vehicle starts turning over in the used car market if you have a total loss. As far as rates are concerned don't be afraid to pick up the phone and make a few calls. The agents basically will ask you the same questions and as long as you give them all the same information you should get a reasonable comparison. The biggest influence on quotes will be how much liability coverage do you want and the amount of the deductible for collision and comprehensive. Try and get quotes from direct writers such as GEICO and USAA. This reduces the agent fee and may result in a lower quote. Some companies tailor policies for six month periods if the vehicle is only going to be in the states for that length of time. If you are a member of AARP make sure you get a quote from them although my experience us the private sector is quite competitive to them. However they are a good sounding board if you have a loss and experience problems.

Consumer Input by TW of Medford, OR

A 1997 Ford Ranger XLT involved in a accident that was not his fault. The driver that hit him was underinsured, so he is having to pay the deductible. Also in the accident the family dog was killed. Allstate says that they do not pay for loss of a dogs life, or injuries sustained from trying to help their dying dog. (lost 2 weeks of work from damages suffered from the dogs jaws locking down on their hands trying to help save him from dying, sever hand injuries incurred) Also the original body shop has damaged the truck more than they have fixed it. After being told to take the truck, they were down with it, all problems had been fixed, while driving the pickup home we noticed that the wheel was wobbly and the truck was not driving right. So it was towed to the Ford dealership, only to find out the axle was bent and possibly the wheel was crooked. Here are our questions:

1) Did we really have to pay the $500.00 deductible when an accident was not our fault?

2) Does personal property not include a much beloved family pet? No where in the policy do we see that dogs are excluded.

3) How long do I have to be without a vehicle. The policy didn't cover rental car, but we've been without a vehicle since November. This ordeal has been a nightmare.

4) Do they have to replace an aluminum wheel that has scrapes and scratches because of the accident? Allstate says it's only cosmetic, the wheel still turns. But we say it needs to be replaced. It was unflawed before the accident and should be replaced.

Response by Jim Wetzel

I am assuming that you are referring to yourself in this situation and that you collected through your collision coverage.

1.)  If you collected through your collision coverage, you have to pay your deductible. If Allstate was able to recover what they paid out from the other party,   your deductible would be reimbursed . Is Allstate pursuing 100% recovery from the owner even though he has 'limited' coverage? I would find out.

2.) As far as I know, personal pets are not included in an automobile policy. If the other party is responsible for 'pain and suffering' as a result of your pet's death, would be a civil matter. Best to ask a lawyer about that one.

3.) Three months for a repair is a really long time. What the hell happened? Was this a shop you chose or one of Allstates 'Direct Repairers'? If it was an Allstate shop, it would have given you some recourse since they sent you there and Allstate is contracted with that repairer. Keep that one in mind if this comes up again.

4.) The idea of an insurance policy is to restore your   vehicle back to its pre-accident condition. If the wheel was undamaged prior to the loss, then you are entitled to an undamaged wheel after the loss. Sure, the wheel turns even if its damaged. The fender also works even though its pushed in. For that matter, you can see through a cracked windshield. Blow smoke on that one. Try our Filing a Claim. If that does not work, tell them that you want a written release stating if you have a blow out in the future, that they will be responsible since your wheel has been compromised from the accident.

Consumer Input by DT of Lewiston, ME

Great site, and very informative. I recently was involved in an accident with another vehicle. I own a 1996 Jaguar XJ6, which upon impact with the other vehicle sustained major damage. At impact of 35-40MPH, the frontal impact did not deploy the air bags of which I sustained internal bleeding injury. Contacting Jaguar after research of a damaged sensor, they have suggested that two (2) sensors need to be deployed, and the assumption that "I'm better off without it" statement. I need technical assistance and advice of engineering on a Jaguar for factual information. Beyond my claim with the other insurer, (she caused the accident), I have diminished value sustaining $9200.00 current estimate before repair work completion. How do I research diminished value on this vehicle?
Thanks for your assistance.

Response by Jim Wetzel

Regarding the air bags, you best bet would be to get an engineering company involved. There are companies that have engineers that can analyze the system to determine any deficiencies. It will take a little research to find one. You might want to start by asking your insurance company if they can refer you to one they use. As far as the 'diminished value' goes, please refer to our page on Diminution of Value. If you fill out the form at the bottom of the page, I will forward your request to AccidentCheck who will be glad to assist you.

Consumer Input by DL of Wynnwood, PA

A remarkable event...my 1990 Nissan stanza (98k miles) was stolen. Ten days later it was found, IN PERFECT CONDITION! There was no evidence of damage to the steering column, or ignition! They pulled the ignition, and then called to come to my house to interview me. I can account for the two sets of keys. They said that if we want to pursue the claim, they needed to take my keys and split the ignition, and send it to a lab that would determine if any other keys were used. If the answer was no it would be turned over to a state agency of some sort for further "handling", with the implication that I would be accused of fraud and stealing my own car. The damage was about $750 (minus 500 deductible). I withdrew the claim, but I think that they may have stepped beyond their legal bounds. Why would they send someone to my house for an interview over a $250 claim? The circumstances are certainly bizarre, but that I should steal my own car, and then park it illegally a block away from where it was stolen, leave it there to be towed, all in a place that I don't usually frequent (it was stolen while at a movie)? I cannot explain the actions of the thief any better then they, but am I losing some of my rights over someone else's bizarre behavior? Your advice and comments will be appreciated. Thanks.

Response by Norm Wetzel

Your theft problem would do justice to a dime store novel. To begin with your reference to "they" leaves me in the dark as to who "they" are (police, insurance?).. You indicate 'they' are technically oriented regarding your ignition, so on that basis I would have to conclude they are not insurance adjusters as their technical background is usually limited. You are the only one who knows if you are truly innocent of any contribution to this theft which leaves me a little puzzled as to why you withdrew your claim. If that was me, and someone was trying to "stiff" me, I would be giving it back to them with both barrels just on the basis of principle. Big guy trying to take advantage of the little guy,that sort of thing. I would start with my agent who sold you the policy. Webster defines an agent as " a person, firm, etc. empowered to act for another" You paid him a fee to represent you, so tell him  about these allegations. If you have a TV station that has an "action reporter" ask them if they want to get involved. Write or call your insurance department and ask for a 'grievance hearing" and copy  your state representative or senator.However, and this is crucial, your shoes have to be clean to take this course of action. I'm a professional  automobile appraiser and not an attorney, so you are on your own as far as legal advice is concerned. However, if you are really being taken advantage of, hold the line and make as much noise as possible. Unless things have changed lately, you are innocent until proven guilty. Good luck and let me know how you make out.

Consumer Input by GB of Arlington,VA.

I'm sure this is a common problem but recently I was involved in an accident. The other driver was at fault. I have contacted his insurance company and they admit that and are paying for the repairs. But they want me to use aftermarket parts on my car. I don't want to do so, and don't understand why I should agree to do so. The insurance company says I will have to pay the difference. If the other party is at fault, I don't understand why I should be paying to repair my car with equivalent parts. Any assistance is appreciated.

Response by Jim Wetzel

First of all, you should refer to our section on Filing Your Claim. This will help you when you encounter a problem like this. Bottom line is that you do not have to accept the aftermarket parts. The insurance company is responsible to restore your car to its preaccident condition. If your car was built with factory parts ( I'm sure it was), then that is what should be installed. Work your way up the ladder in the insurance company. Demand to speak to a supervisor and calmly explain your position. If you dead end at that, I would send a certified letter stating you will proceed in small claims court if factory parts are not installed. If at that point you are stuck, you could pay the difference and sue the 'driver' in small claims court. End of story...if you lost in court I would be very surprised.

Consumer Input by WS by email

My wife and I own a 1995 Ford T-Bird with 51,000 miles on it. August 25, 1997 she was involved in an accident with the other driver at fault,but because she had no insurance, we were forced to file it on our uninsured motorist.We called our insurance company and they suggested that we take it to a certain Ford dealership right up the road from us. No problem. When we started looking at the car, I figured about maybe around 3500.00 damage.But when they started pulling parts off the car, the more they pulled the more damage they found. Total damage was around 7000.00. At this point, the car was only worth 9500.00. Why they didn't total the car...I have no idea. We got the car fixed and now it drives awful. I feel as if I am having to fight to stay between the lines. We have now taken it back 5 times for a front-end alignment and they also replaced the rack-and-pinion steering. It still drove awful. I decided it was time to do a frame check on the car because we just felt like the dealership was hiding something.Guess what...the frame is bent. I called the insurance company and explained everything to them and they said they would have the dealership pull the frame. I explained to the insurance company that pulling the frame is not going to correct the problem. It may make it better, but once the frame on a car is damaged, that it will never be right. I confirmed this with the original dealership that I bought the car from and the auto auction my wife works for.

My questions is:
1) Once the vehicle has been repaired like ours has and we locate more damage, can the insurance company go ahead and claim the vehicle a total loss???

2) If the frame is pulled and we are still not satisfied with the drivability of the car, what next???

PLEASE HELP!!!

Response by Jim Wetzel

Sounds to me like the car should have been totaled. Normally if the damages approach 80% of the market value, you've got a total loss. Sometimes it's not that easy to determine initially. Anyway, number one, if the insurance company directed you to that body shop, then they are responsible for the repair. The idea is to restore your car back the way it was. Sometimes an insurance company will total a car at this point. It doesn't happen often and usually only because the file has become a major thorn and will not go away. So there's your solution...become a thorn. You acted in good faith by bringing your car to the insurance companies recommended body shop. They must act in "good faith" by repairing your car back the way it was. I would explain this to the claims supervisor and tell him you are leaving the car at his shop and expect the vehicle to be made roadworthy. Demand a rental and call every day until the situation is resolved. It's unfortunate that one has to resort to this, but be polite, firm, and persistent. You are entitled to a safe vehicle. Good luck!

Consumer Input by DH of St. Louis, Missouri

I have a 1993 Dodge Spirit with a broken rear trailing arm. Apparently a weld broke. Dodge wants to replace the entire
assembly for $700.00.
The dealer and several area weld shops all agree this is a common problem. I think it's a manufacturing defect and Dodge wants to avoid the expense of repairs.
Do you have any information? Thanks

Response by Jim Wetzel

I would check two sources that might be able to help you out. Before you try this though, make sure you have the Chrysler Zone Manager inspect the problem. Tell him/her that you are are confidant that this is known defect and ask for consideration. See if that gets you anywhere. In the mean time, check out The National Highway Traffic Safety Administration. Their site has search capabilities for finding existing defects on record. As a second approach, I would try the newsgroups. Chrysler has a group where other people may have encountered the same problem. Try it at DejaNews.

Consumer Input by MD of Manassas, Virginia

How can I locate an independent appraiser to determine diminished value on my car? I was plowed into the side of my minivan on 12/16/97 by a woman driving another minivan. She was charged with failure to yield right of way. I just purchased this 1997 Gran Voyager SE 3 weeks prior. I have not even made my 1st car payment yet. The insurance company I am dealing with is Allstate. The claim rep. has no idea about "diminished value". I would like to try to settle this matter without an attorney. Help please!

Response by Jim Wetzel

AccidentCheck is the "source" for information on "diminished value". They specialize in this type of thing and would be glad to help you. Communicate with Bob Retterer. He is the General Manager. When dealing with insurance companies you can refer to our site at Filing Your Claim. Good luck!

Consumer Input by DF of College Park, Georgia

My car was turned over to a body shop for repairs 1.5 months ago and I have yet to receive any approximate time when repairs would be complete. I have informed my insurance co of these problems and they seem to side with the body shop about the extent of the damage and the possible long length of time to repair the vehicle. There have been a couple of supplements added to the original repair estimate that now totals $8400 the car is a 1994 Toyota Camry sedan with 84,000 miles. I am beginning to wonder why this car was not totaled and if the safety of the car is being compromised to save a few dollars. Who can I contact to fully check this car out once the body shop(Toyota body shop)says the car is ready for pick up? Do I have to accept the car? How close to the mfg suggested dimensions for the door opening should the body repair shop adhere to? I am concerned that this car may not be safe. It took a major side impact and the center column post on the drivers side had to be removed and the roof was also wrinkled as a result. Please help relieve my anxiety.

Response by Jim Wetzel

A month to repair your car with that kind of damage would not be unusual. If you are not confidant in the shop who did the work, you could pick a reputable shop to go over the car after it's done. They could "gauge" it on a frame machine, plus check the body for any evidence of shoddy work. It might cost $75.00 to $100.00, but may be worth the piece of mind. Since you went to a Toyota body shop, the dealer has to stand behind them. When you pick up the car, check it closely. The gaps should all be even. The general tolerance is between 1 and 2 millimeters, but sometimes even the factory can't hit that. Check all the windows, locks, etc. and make sure everything works. Get the warranty in writing in relation to the paint and body work. Ask the shop if you have to wait to wash the car. If not, run it through a car wash to check for leaks. Check the car outside in natural light. Stand back and look at it at different angles to see if the paint matches. Finally, get an itemized invoice as to which parts were replaced, in case you find out differently later. If you do all of these things, you'll protect your investment.

Consumer Input by Itzel through Email

I have a 1990 mazda 626, 4 doors, which I bought in 1995 for 3700 dollars. The car was in excellent shape with the exception that it had considerable hail damage. However, I was not concerned about the physical appearance of the car but the mechanical condition. As I said, the car was in excellent condition in and out, with the exception of the hail marks on the body. Anyway, I have had this car since 1995. I have had no problems at all. Currently, the mileage is around 99700. A few days ago, driving into a parking lot, I was hit by a Ford explorer which was backing out of the parking lot. The Ford hit the right side of my car, damaging the right passenger side of my car, the other door on the right side, the quarter panel, and the area around the right front tire. The other driver and I exchanged insurance information and I contacted the driver's insurance. Everything was okay. The insurance admitted that it was the other driver's responsibility and they sent me to the appraiser. This is where the possible problem starts. The appraiser saw the damage of my car and thinks that it might be more than 3000 dollars. Then he proceeded to say that I might not be able to get anything because of the hail damage of my car. The insurance company needs to determine the value of my car. They will do this by finding out the current value , and then subtracting the amount that the previous owner of my car got from the insurance when the car was hailed on. After that, they will take that amount and from there they will determine how much to pay me. For example, if my car has a current value of 5000 dollars, and the previous owner received 4000 for the hail damage, then my car will be worth only 1000 dollars. The insurance company will then pay me only 1000 despite the cost of the wreck damage (the damage seems to be more than 3000.)I think this practice is very unfair. If they have to determine the value of my car, why not take the value of the car in 1994 (when the hail damage happened), subtract the amount paid to the previous owner and then depreciate the car each year after that? This problem has made me very depressed since it might turn out that the insurance will not give me a penny. I feel that I am being punished for something I did not do. What is your opinion.

Response by Jim Wetzel

The real issue here is what is the fair retail value of your car. Obviously, with the hail damage the car is worth less than a car in average condition. I'm sure when you purchased the car, you paid less as a result of the hail damage being there. I'm not sure why the insurance company would deduct dollar for dollar what the previous owner collected. You did not own the car than and did not collect. In New York State on a car that is 7 years old, only 25% of the retail amount of prior damage can be deducted from the retail value. How much would the hail damage detract from the value? Certainly less than a prior collision that looks a heck of a lot worse. Here's what I would do. First, see what they offer you. Hopefully, it will be something reasonable. If not, then blow smoke. Read the help section in our site, titled Filing Your Insurance Claim. Talk to the supervisor and tell him that before you sue his insured you would like to work out a reasonable settlement. If that does not work, than sue the other driver in small claims court. It costs very little and this is a perfect case of consumer versus insurance company. If you paid $3700.00 two years ago, it seems to me the car is worth something a little less than that after two years of use. If you can validate what you paid, that would help your case. Also photos go a long way to show it really did not look that bad even with the hail damage. Be reasonable, and keep in mind you are entitled to the fair retail value of your car, including the hail damage. Good luck...

Consumer Input by HW of Norcross, Georgia

I have an 11 year old daughter who is 5'2" tall and weights about 80 pounds.I drive a 96 Ford explorer with a drivers side airbag. I am trying to find out if there is specifically a danger to my daughter when riding in the front seat if the airbag goes off. There must be test data somewhere that is specific to body size and weight rather than age.Any help you can give will be apreciated.If this is not a question you can answer hopefully you can direct me to someone who has the answer.

Response by Jim Wetzel

To start with you might want to try Insurance Institute for Highway Safety. They have an excellent site. I have other resources that I am trying to locate. Their page on airbags can be found by clicking HERE.

Consumer Input by B.

At a gas station recently, I backed up my '96 Windstar 10 inches and bumped the front end bumper of an '85 Camaro. The driver immediately pointed to a half inch crack in the plastic moulding of the upper left top of the bumper and suggested that I pay him or he would report it to the insurance companies. My vehicle had no damage. I told him to blow it out his ears and a few days later I was informed by his insurance company there was $1300 damage. I am being held responsible for this "accident" but my argument is that there was NO accident because the damage if any was previously there and not caused by me. I have a witness willing to testify that he saw the two bumpers only touch each other.

Question: How could it be determined by his appraiser that the damage was caused by me and not by someone else three weeks ago; three months ago; or three years ago? Secondly, how much of an impact would have been required to cause all this $1300 damage? What link could I obtain crash or impact stats from with regard to an '85 Camaro?

Thanks for your help.

Response by Jim Wetzel

There are a few things that can be done. A good appraiser can tell the difference between "old" and "new" damage. A fresh crack in a rubber bumper cover has a different appearance than a crack that has been exposed for a period of time. Sheet metal damage is even easier to analyze as exposed metal oxidizes rather rapidly. I can estimate exposure in days or months. Another consideration is bumper height. A strong case can be presented as to the height of your bumper in relation to the damage to the Camaro. If they don't line up...how did you do the damage? There are firms that can analyze severity of damage and establish what damage would have been sustained by the other vehicle. I would advise your insurance company of the situation and make sure they pursue an investigation. Your witness is also crucial. I don't think crash data on the Camaro will do you much good.

Consumer Input by C. through Email

I have a 1985 Jeep Wagoneer. I was rear ended and the car would not start. It turned out to be the electric fuel pump. The insurance company is not paying this part of the claim. Question can the fuel pump go out in a rear end accident? How can I deal with the insurance Co?

Response by Jim Wetzel

First of all, you should review the steps listed in Filing Your Claim . It is possible for a rear impact to damage a gas tank mounted fuel pump. I have seen it happen a few times, in my experience. The questions is: when did the fuel pump fail? If the Jeep would not start right after the accident, than obviously it could not be a pre-existing condition (you can not operate a vehicle with a fuel pump that does not work). If you were towed from the scene or the pump failed after a few days, I would say you have a good case. Keep in mind the fuel pump is depreciable. That is, it is considered a part that normally has to be replaced during the life of a car. If they do allow the pump, they will probably "prorate" the new/rebuilt one. Normal depreciation would be 10% a year, not to exceed 75%. If you don't get satisfaction...start "blowing smoke"...politely but firmly!

Consumer Input by E. through Email

Your information page on auto insurance claims has been incredibly helpful to me. One Question,

1. Can I keep the vehicle if my insurance company totaled it and is going to pay me, can I still keep the truck. ( sell for parts etc..)

Thanks for your help...

Response by Jim Wetzel

Most insurance companies will allow you to keep the "salvage" as long as no safety related parts sustained damage. The safety parts consist of the steering & suspension system. If you keep the salvage the insurance company will deduct the salvage value from your settlement. As a rule of thumb, this value will range from 10 to 20% of the retail value. If you feel that the salvage value is unrealistic, ask them how they arrived at their figure. The value can be negotiated in some cases.

Consumer Input by ZF of Budapest, Hungary

I am an owner of an Escort LX Sedan, 1997 far away from you, in Europe, Hungary. I have to change my airbag. At the bottom of my new air-bag there is a two pin jack. There is also a gray and a red wire coming out of the steering-wheel, but the end of them had been cut down. So I cant decide how to connect them. Is the polarity important, or I can connect them without any problems. Thank you for your help.

Response by Jim Wetzel

If the wires are color coded that usually means they need to be hooked up in a certain way. Please exert extreme care when working on any part of an air bag system. The system should really be worked on by a professional. If you insist on doing your own work, I would suggest contacting a local Ford dealership and request a schematic of the air bag system. This should show the way to properly install the air bag module that you are referring to.

Consumer Input by CH of University, Missouri

I am a fairly young driver, with 4 years experience, no tickets, and paying a large sum to be insured. My driving record was spotless until a winter storm hit last year, and I totaled my 1990 Taurus SHO under circumstances out of my control (I had to get home). The insurance company was understanding and gave me more than the car was worth. I replaced the SHO with a 1991 Buick LeSabre which was struck by lightning recently, damaging several electrical components (including the automatic seatbelt system--a necessity) and they dropped me. Why? I feel like I am every insurance company's dream--and I haven't filed any claims other than these two. I've paid close to $10000 in premiums, and had two claims totaling around $5000. Did I do something wrong?

Response by Jim Wetzel

No you didn't do anything wrong (totaling the car didn't really help your cause though ). I remember when I was eighteen (yes there were cars then) and I had a similar problem with insurance. I really didn't understand the whole thing, so I wrote a letter to the insurance company. They replied and said they were sympathetic, BUT that their statistics did support that young males do in fact have more accidents. The insurance companies strictly work with the numbers and related risks. Unfortunately, even the good young drivers share in the cost for higher premiums. To minimize your premium, see if the insurance company grants discounts for defensive driving courses, car alarms, and passive restraints. You also might try raising your deductible as that can impact your premium by 15-30%.

Consumer Input by GW of Madison, Wisconsin

I own a car that was in a accident yesterday, My car I wanted to keep have invested money in to keep mechanically sound. Before occurrence was clean inside and out, and has a track record of reliability for over another 100 thousand miles. My question is when body damage estimate exceed blue book value when you didn't want another vehicle and love what you own, and car is paid for, I am facing options of being paid blue book value and losing the car. If bought back for salvage value takes more money away from cost of repair before person liable (other driver) created occurrence. Not to mention the thousand odd dollars invested in vehicle in the last year to keep reliable. I expect more than blue book value of my car because in the used car market these go for 1000.00 more than blue book value. A young person who has been driving for only two years vs. me driving for 25 years forces me into a position I wasn't looking to be in for a long while. Please prepare me for what I am about to face in regards to reimbursement. Cash value and replacement value far exceeds blue book value.

Response by Jim Wetzel

First of all, the insurance company is responsible to pay you the fair retail value of your vehicle. Find out what the value basis is for the state that you reside. Some states base it on market value (dealer quotes) or averaging at least two evaluation books (NADA, Red Book, Blue Book, etc.). If you can, check with your states Insurance Department. When the insurance company contacts you, have them review the evaluation in detail. You do not state the year of your car, but make sure they have listed your correct mileage, equipment, etc. Have all of your repair bills available. Any vehicle requires maintenance to be roadworthy, so brakes, oil changes, etc. will not increase the value to any extent. If you feel the vehicle is above average than you need to document why (new paint job, new engine, etc.). Prior to their offer make sure you do your homework. If you have the time, go to a dealer or used car lot and have the salesman write down what a car like yours would go for if it was for sale on their lot. When the insurance company makes an offer have your documentation ready. "I understand your offer, but two dealers have told me my car is worth "X" amount." Most insurance companies can negotiate the settlement amount within reason. You have the option of keeping the car, most insurance companies would prefer this anyway. On older vehicles, that is vehicles more than seven years old, the salvage value is usually is about 5-10% of the value of the car. If the insurance company states a salvage value they must give a supplier willing to pay that amount. Remember, they are only responsible for paying fair retail value. If you feel your vehicle is worth more than that, you must be able to document it.

Consumer Input by DD of Alexander, Arizona

Background: 1994 Olds Delta 88. 86,000 miles excellent appearance. Car in the body shop now four weeks with $5700. front end damage. Clipped from the side. In discussions with the body shop (new car dealer) I mentioned the possibility of trade-in. He divulged that I should be aware that there would be a loss of value because of collision damage. The new car salesmen said they new longer performed such an evaluation for legal reasons. When I mentioned this to the State Farm adjuster he acknowledged that there was such a thing and would be happy to work with me on it but he was adamant that he had no idea of how to proceed in determining the amount. It seems to me this would be a "normal occurrence" and a procedure would be available. Can you provide any insight?

Response by Jim Wetzel

Loss of value or what is termed "Diminished Value" is a new up and coming issue in the automobile/insurance industry. The rational behind this is that a vehicle has a certain loss of value as a result of being in an accident. It is not the accident as such , but the evidence of a substantial body repair that would decrease the value. Some states are now recognizing the issue, although as far as I know there is little legislation reflecting this. There is a company in Georgia that has a network of shops that are well versed in Diminished Value. Their phone number is 770/956-8700 and they can refer you to a shop in your state (if available). If they can not assist you DD, you still have a few options. First, check with the supervisor of the State Farm office that you are dealing with. Ask him/her specifically what their policy is regarding "Diminished Value". If he/she is unclear or vague then your next step is the contact your State Insurance Department. They generally are aware of the latest issues. Your third option would be to either sell the car outright or choose another dealer to trade it in with. Your current dealer should not be penalizing you for having the car fixed there. The idea is to restore the car so there are no tell tale signs that it was wrecked. If all else fails, check the site of IADA (Independent Automobile Damage Appraisers). Look up the office nearest you and ask a professional appraiser familiar with your state.

Consumer Input by JC of Owasso, Oklahoma

Recently my 1991 Oldsmobile Bravada was stolen from my driveway during the night. When it was recovered, there was some damage to the interior as well as the exterior of the car. The insurance company says that it will replace the steering column and other damaged parts with new parts. Is this acceptable? I was told that my warranty on the car would not be any good on these parts because they were used parts. I took my car back to the dealership that I bought it from to get it fixed. Also, the headliner had been ripped and had cigarette burns in it. Also, the carpet was filthy and had cigarette burns in it. I was told that the head liner and the carpet would be depreciated over 50%. Before my car was stolen, the interior was in immaculate shape. I did not smoke in the car and the children were not allowed to eat or drink in the car. I do not understand why if there was nothing wrong with the carpet and headliner before it was stolen why they would depreciate it to that extent. Is this normal?

Response by Jim Wetzel

In New York State, the insurance companies are not permitted to replace any safety components with used parts (LKQ). I am not sure about Oklahoma, but they probably see that as OK. You might want to check with your State Insurance Department. If the dealer is going to void your warranty, advise you insurance company to see if they will be liable for any failures in these components down the road. You want their response in writing. The industry standard on depreciating interior trim is 10% a year or say a 10 year life. This is a guideline that is not cast in stone. The actual condition of the part determines the rate of depreciation. If you kept a clean interior, a 5 year old carpet might warrant 20 or 30% depreciation. Explain your problem to your insurance Supervisor. Does your car have low mileage? Seldom used? Defend your position politely, but firmly and state as a policyholder you are very unhappy. As a side note, on any theft make sure you get all of the mechanical systems checked out. The cars are usually abused while stolen. In the event of a major drivetrain failure down the road, you should be covered if it happens within a reasonable time after the loss (6 months to a year).

Consumer Input by JM of Placerville,CA

What, if any, data exists that indicates the loss in resale value to an automobile when it's been in an accident, even though repairs have been made? The first question someone usually asks, when one is attempting to sell a used car, is "Has it every been in an accident?" It seems logical they will lower their offer because of this? Have any studies been done on this? Thank you.

Response by Jim Wetzel

If there are studies in relation to this, they are news to me. "Loss of Value" right now is very subjective to say the least. Severity plays a major role in this issue. Severity meaning the extent of damage sustained in the accident. Obviously $500.00 worth of damage is going to have less impact on a vehicles value versus a $5000.00 impact. "Diminished Value" is really tied to the quality of repair. I have seen some body shops repair a car with $10,000.00 worth of damage, that I would defy anyone to tell where the impact was. If in your example, the individual could not find any evidence of body repair, I would doubt the value would be diminished. If on the other hand, the wheelhouse had more hammer marks than a Jamaican steel drum, I'm sure the buyer would have second thoughts.

Consumer Input by T.O. through Email

a.) I would like to learn if you apply any special rule regarding the "Diminution in value of vehicles "involved in TRAFFIC accidents after the completion of repairs. b)What is your position in the matter regarding the fitting of second hand spare parts on NEW vehicles,i.e 2-3 years old. c)What is your position about imitation parts?Is it legal to use such parts on vehicles .

 

Response by Jim Wetzel

a.) I do not have a rule regarding "Diminution of Value" on automobiles. I am not even sure that there could be such a thing due to the subjective nature of the subject. There is an issue here...but it is difficult to measure in a consistent manner.b.) your second subject involves used parts on "newer" automobiles: my opinion my be different from the insurance companies. Their position is that they are responsible to restore the vehicle to its pre-accident condition. If you have a 1994 vehicle with a 3 year old fender they look at it as ...why not replace the damaged fender with a 3 year old fender (used). Makes sense I guess from their prospective.c.) re: aftermarket parts. In New York State there is legislation requiring the use of CAPA certified aftermarket parts. I am not sure of the legislation elsewhere. Some policies stipulate that aftermarket parts will be utilized in repairs. If my car was damaged by another person, I would want factory parts.Restoring the car to its preloss condition would include putting the same type of parts back on (factory parts vs. aftermarket). The insurance company may not agree with that.

Consumer Input by L.H. through Email

I wrecked my 1996 Crown Victoria with tape-radio, air, tilt wheel, electric driver seat, and would like to know what I should be satisfied with from the insurance co. They use some sort of a national computer program for evaluations. What would that be?

Response by Jim Wetzel

The insurance company uses a service that uses a computerized data base to determine the value of your car. The data is either based on market surveys (actual sales) or book value (i.e. Blue Book, Red Book, etc.). Ask the company which it is based on and that you want a copy of the evaluation. Check it carefully. Make sure that all of your options and mileage are listed accurately. I checked quickly and your car has a base Red Book value of $15,575.00 and the NADA base book value is $15,350.00. This is just the base value, no mileage or options considered. See what they offer you. If you are unhappy with the value you need to supply them with other sources (dealer quotes, book values, etc.).

Consumer Input by Sherry of Tarpon Springs, Fl

I would like to know how much my 1987 Isuzu Imark is worth. It is fully loaded and in good condition.

Response by Jim Wetzel

If you just require a simple book value I would recommend the following sites:
Blue Book Values
http://www.kbb.com/
Hemmings Motors
http://www.edmunds.com/edweb/used/usedcars.html

Consumer Input by K.B. through Email

I recently visited your excellent Internet site on auto appraising.Thank you very much for putting together this site. It is very helpful.

I have a couple questions:My '89 Tercel was totaled last week by another driver in Washington State. His insurance company (Allstate) has decided that he was at fault and they will pay for the claim.We are about to start discussing the amount of my claim. I would like to ask for:

1) A reasonable amount (Blue Book) for the vehicle plus an additional amount for the recently rebuilt engine, new CD player, and other amenities.

2) The costs associated with purchasing the new vehicle such as sales tax and emissions testing.

3) A small amount of compensation for my time that will be spent dealing with the accident, filing the claim, finding a new car, and purchasing/licensing/insuring the new car.

Is this reasonable? Are there standard industry policies for dealing with these issues? What rights do I have? What is the best way to negotiate a claim?

Thank you for your help

Response by Jim Wetzel

The insurance company is obligated to return you and your property to the state that you were in prior to your accident. This has to be done in a manner that is considered acting in "good faith" towards a fair settlement with you. If you really want to be prepared find out if your state has an Insurance Department that regulates insurance companies. If there is, check with them as to what guidelines the insurance companies must follow re: settlement. If there is no department then the general acceptable rules apply.

1.) The insurance company must pay you the fair retail market value for your car. They also must specify the manner in which they determined the value. Do some homework first. Go to the library and look up the Kelly Blue Book, NADA, and Red Book values. Photocopy the pages so you have a record. You can also get some values on the Internet (see the response above). On a car 8 years old the CD player will not effect the value. A rebuilt engine or transmission will...so get your bills together. When the insurance company makes their offer, if you are not happy with that you have your ammunition at hand. Bang zoom!

2.) The settlement should include sales tax and any necessary registration costs. Forget being paid for your time. It's not fair I know, but I've seen this issue go to court and it just does not pan out. Lost time from work due to injuries is one thing , but compensation for the time to handle the aggravation is a dead issue. That one sucks!

Remember, information and being prepared are the key. The process is long and scary but you will get through it. Take your time. If you get overwhelmed by too much info in a phone call, take a break and analyze a little bit. It's new to you, but not to the claims handler that probably settles 4 or 5 claims a day. One step at a time... not sure ask questions and use your common sense.

For additional info on how to file a claim, check here:
Filing a Claim .

Consumer Input by Juli of Winter Haven, Fl

We recently bought a rebuilt 1996 Chevy Blazer Lt. Not quite two months after we bought it ,it was stolen and found burnt. Our insurance co. states they may not pay much on the claim if at all.When we bought the blazer I called the tag agency and State Farm and and asked if rebuilt vehicles could be insured and was told if they were repaired at 100%. What should we expect from the insurance co. and what are the guide lines on replacement value on a rebuilt. How do we know if were getting cheated. Are there any books for rebuilts like the blue book or nada that we can look at? Thank you for your help.

Response by Jim Wetzel

I am not sure what you mean when you say "rebuilt". I think you need to substantiate what the vehicle was worth prior to the theft. Was Allstate aware that the vehicle was rebuilt when they insured it? If not, you may have a problem. In New York the vehicle has to be inspected and photographed prior to being insured, so the exact condition of the vehicle is known. Was your vehicle 100% rebuilt or was it partially repaired? Do you have photos and a bill of sale to reflect the condition and cost? The insurance company is only responsible to pay you the fair market value of your Blazer. There are no book values on this type of vehicle that I am aware of. You have a tough situation here. Unfortunately the burden of proof is going to be yours unless Allstate mislead you somehow when the insurance was taken out.

Consumer Input by Michael through Email

I lease a 1993 dodge caravan that is coming off lease soon. Some paint on the hood and the roof is peeling off. Chrysler offered to pay for half the cost of repainting, but this will cost me approx. $1000 dollars. What liability do I have since this is obviously a factory defect? I have leased this car for 5 years,and I am leasing a new Caravan for three years. It seems to me that since this is not a wear and tear problem the leasing co. should not be able to charge me. What are my options?

Response by Jim Wetzel

First off you should check out the program that aired on Dateline at: Dateline Article Excerpt. Are you leasing from a Chrysler dealer? If you are, I would try to validate that this in fact a Chrysler problem. Use any correspondence that you have from them or the fact that they did pay a portion. After your followup (based on the article above) you may be able to get more.The lease terminations are not supposed to deduct for normal wear & tear. The paint defect is not due to your neglect. If they persist with penalizing you for the paint you could take the lease company and Chrysler to small claims court. A judge would love handling this one! If they do persist and clobber you with a high body estimate, get a second opinion from an appraiser. Most states allow this on the consumers behalf.

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Consumer Input by Carl of Barstow, Cal.

I am trying to decide between the ford explorer, the nissan pathfinder, and the toyota 4-runner.I know that the nissan and the toyota are both good, dependable vehicles, but I know very little about the explorer. Please send me information on the explorer's reliablity, saftey, and estimated maintenence costs. Thank you for the info.

Response by Jim Wetzel

I would suggest looking up these vehicles in Consumer Reports. They have tested the vehicles and also polled vehicle owners as to their experiences. For overall crash worthiness , I would check out Insurance Institute for Highway Safety. If you want to run a defect report, try NHTSA (National Highway Trafffice Safety Administration. I hope it helps.