My teenage daughter wrecked my 1999 Dodge Stratus. She is fine, but the car is dead. The car had 97000 miles on it at the time of its untimely passing. It had a lot of miles left in it. It was running great, looked good, and everything still worked. The car was paid off and I planned on driving it for a few more years. It had no signs of not being able to last a while more.
Anyway, the insurance company is offering $4100 for it (before my deductible). That is less than Kelley Blue Book’s suggested retail value, but more than the trade in or private sale values. I figure on having to spend at least $12000 to find a comparable newer car. I know that the insurance company can’t go that high, but how can I encourage them to go higher? Should I just quit where we are and be glad I’m getting that much? I’ve been happy with this insurance company and I have no reason to feel that they are out to rip me off. They have been very prompt and pleasant to work with. I fully expect that my insurance rates are about to skyrocket since the collision was completely my daughter’s fault. Aside from her safety, my only consolation is that the other party was not injured at all. She hit a stopped garbage truck while she was travelling around 70mph. The truck won that battle and didn’t suffer a scratch. Fortunately, the guy tending the truck wasn’t in the way. For what it’s worth, the car took the punishment and didn’t hurt my daughter at all. I figure that’s about all I can ask of it. The car gave its life so that she would live. Hooray for Dodge.
I don’t really know what to tell you in regards to your insurance situation, but just to express relief that your daughter is ok. No matter what comes of it you can take comfort in the fact that she is still with you, and perhaps a little wiser because of it.
I am assuming that you had general full coverage on the car and based on the general specs you provide, in my experience with totalled cars and being a previous owner of a similar car, I say that’s a fair amount for your car. Dodge Stratus are ok, but I have seen that their prices from new to used goes down real fast.
Now. As to your OP, how much “higher” are you talking about? Most insurance companies (as well local judicial courts here in my region) I have dealt with go by the “Blue Book” value. If the Blue Book price and their price are kinda-sorta near the same amount…eh…I don’t think you will budge them. But. Depends. How much are you asking? If you really want to fight it, unless you have a lawyer friend who will do pro bono work for you, I would suggest approaching a lawyer to see if you have some cause to request a high amount.
Unfortunately, I don’t think you’ll be able to get any more money out of them. They’re paying you for the value of your car. If they’re above the Blue Book private party and trade-in value, then they’re paying you more than the Blue Book says the car is worth. They’re not going to pay for you to buy a newer car - they’re paying for the value of what you lost.
It seems like a fair price, there are a number of 1999 Stratuses for sale at or around $4000 (that you could probably negotiate down another hundred or so).
Here is one in particular that seems comparable, and in good condition.
If they’ll let you keep the car after sending you the check, then go with it.
You can then donate the car to Heritage for the Blind or the American Lung Association and get the bluebook value of the car (IIRC) as a charitable deduction, essentially doubling your money. And both are magnificent charities.
They don’t have to, but they can find one. On those general specs, I can find a Stratus that price ballpark. I am not sure that strategy will get the OP more $$.
I’m from the UK, we have something like the Blue Book, but it is not blue.
The well known one is Parker’s Guide, but there is another used by the trade.
If someone offered me less than trade buy in price as indemnity, I would be sure that I could not replace the car for that.
It never does any harm pointing out to insurers that their contract is to indemnify you - not make an arbitrary offer.
Hmm… one of my old friends is in the insurance game, he used to be a claims loss adjuster - according to him the trick is to be friendly but not a pushover.
I’ve been through this. I got online and sited various car valuation websites as well as the posted selling price for similar cars. Before I presented this to the insurance company we were far apart on the settlement amount. Be polite and be prepared to present real-world information.
Is not an arbitrary offer if it is based on an amount that the courts would see based on a market agreed value that is at least based on a source used to do so.
From my experience dealing with Texas judges and insurance companies, if the price offered is not that far from the Blue Book value, they are not going to budge.
But. Again. How much is OP wanting more in amount?
When my car was totaled, I told the adjuster about the expensive snow tires that were on the car (which, sadly, didn’t help on black ice) and the aftermarket alarm system I had installed. Based on that, I received several hundred dollars more. So you have explain to the adjuster why your car is worth more than average. (Perhaps the mileage is low for the age, or it was in especially good condition.)
You may be more fortunate than your figuring. Carrying collision insurance on an eight year old car is a losing proposition. Take a look at the premiums you were paying for that 4 grand worth of insurance. If the car hadn’t been totaled you would never have come close to getting your money’s worth.
I carry, the relatively inexpensive, comprehensive coverage, in case of fire, or theft, but never collision on a car more than 6 or 7 years old.
If you can show evidence that the car was exceptional for some reason, like new tires as Dewey Finn mentioned, you may be able to get them to up the ante, but it sounds like a fair offer to me.
Car Insurance has to pay you the replacement value of he car. So the amount that matters is how much it would cost you to find the exact same car in the exact same condition. Look at Kelly’s Blue Book, Edmunds, and any other car price site you can think of. Also check out what the car is selling for at used car lots and the like. Average the amounts you found together, and ask the insurance company to give you that amount. Once you give them proof of the value they should cave, if not, tell them you’ll report them to your states insurance commision.
No they don’t. Insurance companies can and will pay the **fair market value ** for the totalled vehicle. This will be less than the Kelley Blue Book or NADA value, usually in the 70 to 90% range. Most insurance companies use an insurers database that tracks the value of motor vehicles from all value standards, dealer’s retail, private party retail, dealer’s trade in value and public and private auction value. The numbers are thrown together and a fair market value is derived. Some insurance companies will make deviations of this value based on things such as aftermarket add-ons, recent major mechanical repairs and custom wheels and/or tires. I am a regular at a legal forum and the above is the basic canned response to folks with questions as to why the insurance companies offer less than what folks think thier vehicles are worth.
What is “Fair market value” except what it costs if you wanted to buy that exact same car at that exact moment? Insurance companies don’t want to pay out any more then they have to, so they come out with excuses that limit what they have to pay. However, you can fight them on the amount of your payment by just finding a more fair price for your car. Best option is to find a comparable car (same make/model, like condition and close to the same miles) and tell your insurance company.
A commonly held, but incorrect, belief. Read your policy, it spells out the limits of your coverage. There may be some room for “good faith” negotiating, but the bottom line is your legally binding insurance policy.
