Should I Keep Fighting Vs Call It A Day?

[RachaelMH]

I have a 2007 2rd LT Chevrolet Cobalt w/ 49,200 miles on it. 15 days ago I was in my first accident. I hydroplaned into a cement barrier. I was the only person involved. My vehicle was towed to the dealership. They inspected my damages and let me know that they had determined my vehicle to be a total loss.

Their estimate came just under $5800.00.

Based on my evaluations of several third party sources (NADA, KBB, Black Book, and Edmunds.com) my vehicle is worth somewhere between $5000 (rough/average trade in value) to $9500 (excellent retail condition).
I also searched for every duplicate vehicle within 500 miles in order to gauge the current market. 90% of the vehicles I found were being priced online (at dealer retail pricing) between $8,900 and $9,900.

Based on this research and on these values, my vehicle should be considered a total loss. I also referenced all of this and sent all of this information to my field agent working on it.
Unfortunately they have somehow determined my vehicle to be worth $10,700. This was derived from the company they use to evaluate values on their behalf, CCC Valuescope. This company is terribly rated and well known for its evaluations being accurate only about 50% of the time. They even recently settled a class action lawsuit where they paid out almost 8.5 million dollars in claims.

As a customer, I am not satisfied with the situation and have been unsuccessful in my attempts to handle this within the company. I don't believe that my vehicle is being evaluated fairly based on actual market value. I am disputing the fact that my vehicle is repairable. I believe my vehicle is worth less than what they have determined.. I believe with all of the evidence combined, I am able to support this argument.

As a person, consumer, driver, and generally logical person, I do not feel secure in putting $6,000 worth of work into a 6 year old vehicle and expect not to have any further issues. On top of that, I will lose at least a third of the residual value in my vehicle based on the amount of work and damage that would be reflected on my vehicles history report.

(I also should note that I still have a lien on the car, and am slighlty upside down. I have gap coverage. So if my insurance totals it out, i will be able to get a replacment vehicle that I can be confidant in going forward.)

I have yet to authorize for the repairs to get underway. I am trying to make sure I have exhausted all of my resources and have had the fairest result in the situation.
I just want my vehicle to be evaluated fairly and accurately based on the vehicle itself, the current market and with trusted, third party sources that have nothing to gain from my insurance company.

Im really just trying to see if this is grounds to hold off and keep fight it out. And if so, where do I go from here?

I look forward to any advice or assistance you can give. Thanks for your time!

 

[djs]

Hi Rachael

I'm not sure what state you are in, the answer might vary a bit (not much) depending on laws within your state.

Based on your research, lets say your car is worth $9000. Now, an insurance company has to add to that the cost of taxes, title, registration, tags, whatever else the charges are to buy a car, making it probably somewhere closer to $10,000. Its not the sticker price, its the full replacement cost. This means you are agreeing in general with the CCC valuation.

But, for the fun of it, lets look at the $9000 valuation. Many states have rules about when a car is considered a total loss, usually from 75%-100% of the value of the car. State laws aside, insurance companies tend to use 80-90% of the value, since there is value in the scrap if a car is totaled.

Lets pick a $9000 valuation and an 80% replacement to be totaled. 9000*.8= $7200 in damage before it would be totaled.

Since you claim the repair estimate came in at under $5800, you are not really near a total situation.

Also, without seeing pictures, I'm assuming that with only $5800 in damage, you are not looking at much, if any, structural damage. Maybe some suspension parts that need to be replaced, but sounds mostly sheet metal and painting.

I'm not sure if there is much here to fight. Most people argue that their car is worth more than what the insurance company is offering and I'm willing to bet most of the CCC complaints you see are exactly this with very few saying they are offering to much.

Dan

 

[Accelerated]

It depends. If they are totaling the vehicle, they will likely want to salvage it (they pick it up and send it to CoPart or some other auto salvage auction). So, if they are totaling it, request that they find you a vehicle of like kind and quality for that price, within 100 miles of your location. If they cannot, then you have ground to stand on when arguing.

If they are simply deciding that it was not a total and that the vehicle can be repaired (which happens regularly, once the estimates are actually written) call it a day:

Let's say "poor dealer condition" rather than "excellent". What would that be, $8,000 rather than the upper end at $9,500?

Rule of thumb (and the law in many states) is that to total a vehicle, damages must meet or exceed 75% of the value of the vehicle. $8,000 * .75 = $6,000. Your repair costs are lower than that, and again, we are talking about a dealer vehicle in poor condition. Your vehicle fits the standards to be repaired. Not 75% is not 75%. A vehicle worth $8900 (the low end of the figures you presented) would require $6,675 in damages to be worthy of a total. If the damages are $6,670, the insurance carrier is within it's rights to repair the vehicle.

 

[FullAuto]

In my state they total at ACV - salvage value. I wrote a 2008 Cobalt LT about 2 hours ago. My computer put it at just under $10k. If yours is worth $9k, I still don't think $5800 in damage would total it.

Authorize repairs and let them tear it down. If/when they find hidden damage, they will add it to the estimate and it may total then. Go to one of their direct repair facilities. Typically those places write their own estimates and bill the company instead of working off the adjusters sheet. They will often run up the bill when they can.

 

[sman]

I would definitely fight it. Last year my 17 year old daughter was in an accident in her car (2002 Maxima). They totaled the vehicle (frame damage) and offered me $5,400. I rejected their offer and submitted three comparable vehicles listed on AutoTrader for varying amounts. When all was said and done I received a check for just over $7,100 for the damages to the car.

 

[djs]

In my state they total at ACV - salvage value.....

I believe this is true the in the majority of states.
Of course, depending on the salvage value, you are looking at 10-20%, so the states that have a 75%-80% total requirement aren't that far off.

 

[b61mack]

Salvage,on a basic auto is around 250.00, That is what USAA, charged me for my 88 lincoln tc.

 

[FullAuto]

Salvage,on a basic auto is around 250.00, That is what USAA, charged me for my 88 lincoln tc.

The person who bids on a car like that at auction strips it for all it's "good" metal (radiator, condenser, heater core, wheels, convertors) and then scraps everything. A 2007 model will have a much higher salvage because salvage yards are still buying those to part out. Most yards buy 10 years old or newer.

Salvage on an American made truck or SUV is huge because Mexicans buy them up and take them south of the border.

Also, if it's a hail loss, salvage is always cheaper. Salvage yards don't really bid on the hail cars because all the sheetmetal is beat up. This drives the salvage value way down.

 

[b61mack]

The difference is i had the car in my yard. I was planning on fixing it. But gave up and sold it to the junk man for 450.00. Once it is captured, by a tow yard. It is lost, for storage.

 

[xrac]

The difference is i had the car in my yard. I was planning on fixing it. But gave up and sold it to the junk man for 450.00. Once it is captured, by a tow yard. It is lost, for storage.

That would be top dollar for most junk vehicles.