Several insurance claim questions.

[wieduwilt]

For those who have been in my position before, what's the process?

Also, a few questions:

1. Would you consider this totaled, and do you think the insurance will as well? My answer would be absolutely yes. Even if the insurance says they want to fix it, I'd dispute that. From what I see there is definitely frame damage and I know the car would never drive right again.

The door was jammed backwards and could not open. It could not close either because the edge of the door was scraping on the passenger quarter panel. Frame damage?

Nothing impacted or struck the roof, but part of it had a serious dent in it. Frame damage?

Rear passenger quarter panel damaged.

Both airbags deployed and the entire dash was screwed up. I had to rip open the glove box, the center console around the shifter bezel had shifted over to the left a considerable amount and my head unit had fallen backwards out of the head unit.

This might not be recognizable in this photo, but behind the passenger seat the floorboard has a very large hump to it that was not there before. Frame damage bent the floorboard upwards?

2. What should I do about the engine? It was replaced and we have all paperwork that came with it, along with how many miles were on the car when it was replaced. I would say the new engine has +/- 15k miles on it. It was bought as a brand new crate motor and was around $6000 not including labor. Would this make a difference in what the insurance company offers me for the car? I definitely want to be compensated because the fresh motor definitely adds value to the car.

3. What about aftermarket parts I've installed on the car: rotors, pads, clutch, clutch cable, quadrant, head unit, speakers, etc. I have the OEM speakers, that's it, so everything I take off I will have nothing to replace it with.

4. Will I be able to take what I want off the car after they total it? I'd gut the car down to the frame but I'm pretty sure that even if I was allowed to, it would take away value from the car and the insurance would offer me less for it.

5. What can I do if the insurance offers me less than what I feel the car is worth? I suspect they'll be looking at the KBB value and factors such as sales prices for the same car etc. KBB has my car valued for right at $12000, but I feel the car is worth more than that. It's got practically a brand new motor, new clutch was installed when the motor was put in, new rotors, pads, tires, head unit, speakers. On top of that, it was the cleanest Mach 1 I've ever seen.

 

[TrevorR90]

Pretty much totaled, also I hope you have receipts for those aftermarket parts. I don't think a Brand new engine would matter because it is stock equipment. Why should anyone pay more money because it has a new engine in it? If you want to take off the parts you have to put the stock ones back on.

 

[wieduwilt]

Pretty much totaled, also I hope you have receipts for those aftermarket parts. I don't think a Brand new engine would matter because it is stock equipment. Why should anyone pay more money because it has a new engine in it? If you want to take off the parts you have to put the stock ones back on.

The head unit was from a private sale with a friend of mine so no receipt. For the other parts, can online order confirmations count as receipts?

 

[Torch10th]

For those who have been in my position before, what's the process?

Also, a few questions:

1. Would you consider this totaled, and do you think the insurance will as well? My answer would be absolutely yes. Even if the insurance says they want to fix it, I'd dispute that. From what I see there is definitely frame damage and I know the car would never drive right again.

The door was jammed backwards and could not open. It could not close either because the edge of the door was scraping on the passenger quarter panel. Frame damage?

Nothing impacted or struck the roof, but part of it had a serious dent in it. Frame damage?

Rear passenger quarter panel damaged.

Both airbags deployed and the entire dash was screwed up. I had to rip open the glove box, the center console around the shifter bezel had shifted over to the left a considerable amount and my head unit had fallen backwards out of the head unit.

This might not be recognizable in this photo, but behind the passenger seat the floorboard has a very large hump to it that was not there before. Frame damage bent the floorboard upwards?

Simply based on the photos alone, you could kind of assume a total loss. However, we all know what assumptions do. Keep in mind that modern cars are designed to crumple in areas. That doesn't necessarily facilitate frame damage. Additionally, a small amount of flex in the rails (especially on a unibody car) is almost always going to happen in a decent wreck. That doesn't necessarily mean however that the frame can't be made right with the use of a frame puller. As long as sections of the rails aren't being cut and spliced there's not a huge issue there.

Most insurance companies start looking at total loss as repair estimates start getting to or exceeding 70% of true market value. Depending on the estimate here is going to determine a total loss, but due to the age of the car, it's going to be close I think.

2. What should I do about the engine? It was replaced and we have all paperwork that came with it, along with how many miles were on the car when it was replaced. I would say the new engine has +/- 15k miles on it. It was bought as a brand new crate motor and was around $6000 not including labor. Would this make a difference in what the insurance company offers me for the car? I definitely want to be compensated because the fresh motor definitely adds value to the car.

You will need to provide receipts. If this is a factory replacement motor and not a modified/upgraded motor then it may actually hurt the TMV of the car.

3. What about aftermarket parts I've installed on the car: rotors, pads, clutch, clutch cable, quadrant, head unit, speakers, etc. I have the OEM speakers, that's it, so everything I take off I will have nothing to replace it with.

Again, as with the engine you'll have to provide receipts for these items. Generally speaking your insurance company isn't going to cover aftermarket parts, unless you had specifically insured those items under your policy. If you hadn't, I'm afraid in most circumstances, you're going to be SOL. However if you're dealing with another person's insurance company because you're not at fault, you may be able to get some compensation there. Again, not without receipts though.

4. Will I be able to take what I want off the car after they total it? I'd gut the car down to the frame but I'm pretty sure that even if I was allowed to, it would take away value from the car and the insurance would offer me less for it.

You have the option to buy back the salved vehicle. This reduces the amount you'll receive for your claim by the amount that the insurance company would get for the car at the salvage lot. Unless you do this, you are not entitled to take anything off of the car. If the motor and aftermarket parts are still in good order, it may be worth it to buy the salvaged car and sell those items. That does of course assume that the insurance company totals the car. If you have a note on the car, it may not be an option because the note may need to be satisfied and the reduced amount based on salvage buy-back may put you under that pay-off figure.

5. What can I do if the insurance offers me less than what I feel the car is worth? I suspect they'll be looking at the KBB value and factors such as sales prices for the same car etc. KBB has my car valued for right at $12000, but I feel the car is worth more than that. It's got practically a brand new motor, new clutch was installed when the motor was put in, new rotors, pads, tires, head unit, speakers. On top of that, it was the cleanest Mach 1 I've ever seen.

The claims process will help determine this. You should provide any bit of information that you can in regards to the upkeep of your car. This includes maintenance receipts, pictures etc. Anything that paints the car in a better light will help. However, the insurance company is only liable to pay you true market value of the vehicle. They will look at the recent sales (not asking price) of like equipped and conditioned vehicles in your regional area. If that value is $12,000, that's what you're going to get. Remember, modding cars does not increase their value. In many cases it decreases it. That's part of the expense of this hobby and one of the risks you take by partaking in it.

Answers in red

 

[wieduwilt]

The claims process will help determine this. You should provide any bit of information that you can in regards to the upkeep of your car. This includes maintenance receipts, pictures etc. Anything that paints the car in a better light will help. However, the insurance company is only liable to pay you true market value of the vehicle. They will look at the recent sales (not asking price) of like equipped and conditioned vehicles in your regional area. If that value is $12,000, that's what you're going to get. Remember, modding cars does not increase their value. In many cases it decreases it. That's part of the expense of this hobby and one of the risks you take by partaking in it.

Thanks for the help. I'm having a hard time seeing how a new engine would decrease the car's value though.

I do have tons of pictures showcasing how well maintained the car was. Will I be needing those?

 

[Torch10th]

Thanks for the help. I'm having a hard time seeing how a new engine would decrease the car's value though.

I do have tons of pictures showcasing how well maintained the car was. Will I be needing those?

Just like any modification. The vast majority of people buying cars want them to be stock and unmolested. If it's a factory replacement engine, anybody looking to buy is going to immediately assume (rightfully so or not) that the car was abused. You simply don't see replacements on cars that young. The insurance company is going to wonder the same thing.

It may or may not hurt the value, but one this it doesn't do is increase the value.

Yes, definitely provide pictures that highlight how well kept the vehicle was. True Market Value can certainly be swung in your favor if you can prove the car was an above average specimen and may have produced a higher sale value if it was on a dealer lot or being sold privately.

There's nothing prohibiting you from haggling with the claimer representatives. However, keep in mind that what you believe the car to be worth and what it is actually worth are two entirely different things.

To get an idea of true market value, browse some ebay sold listing that are in your region for like cars. Again, they are going to use actual sales figures, not asking prices.

Again, all that assumes it's even totaled in the first place. You'll need to at least get the estimate done on it before the insurance company will start making that decision. In the end, all they are required to do is provide you with a vehicle to pre-loss* spec or a payout based on the vehicle's true market value. Nothing more, nothing less.

By pre-loss that is going to be OEM unless the insurer was aware and adjusting it's premiums based on the existence of aftermarket parts.

 

[wieduwilt]

Just like any modification. The vast majority of people buying cars want them to be stock and unmolested. If it's a factory replacement engine, anybody looking to buy is going to immediately assume (rightfully so or not) that the car was abused. You simply don't see replacements on cars that young. The insurance company is going to wonder the same thing.

It may or may not hurt the value, but one this it doesn't do is increase the value.

Yes, definitely provide pictures that highlight how well kept the vehicle was. True Market Value can certainly be swung in your favor if you can prove the car was an above average specimen and may have produced a higher sale value if it was on a dealer lot or being sold privately.

There's nothing prohibiting you from haggling with the claimer representatives. However, keep in mind that what you believe the car to be worth and what it is actually worth are two entirely different things.

To get an idea of true market value, browse some ebay sold listing that are in your region for like cars. Again, they are going to use actual sales figures, not asking prices.

Again, all that assumes it's even totaled in the first place. You'll need to at least get the estimate done on it before the insurance company will start making that decision. In the end, all they are required to do is provide you with a vehicle to pre-loss* spec or a payout based on the vehicle's true market value. Nothing more, nothing less.

By pre-loss that is going to be OEM unless the insurer was aware and adjusting it's premiums based on the existence of aftermarket parts.

Gotcha. The engine was replaced because of a broken timing chain. There was no abuse, I can have the mechanic that worked on it to verify that, though it probably would have no use.

 

[Torch10th]

Gotcha. The engine was replaced because of a broken timing chain. There was no abuse, I can have the mechanic that worked on it to verify that, though it probably would have no use.

It's a stock replacement engine. It's probably not going to hurt the value, but I'm afraid you're not going to get that 6k back either unfortunately. The car has to have an operating engine to be worth true market value. But provide the receipts and let the claims representatives know. You take a risk of it hurting value, but then you also have the opportunity that they might throw you a bit more because of it too.

 

[wieduwilt]

It's a stock replacement engine. It's probably not going to hurt the value, but I'm afraid you're not going to get that 6k back either unfortunately. The car has to have an operating engine to be worth true market value. But provide the receipts and let the claims representatives know. You take a risk of it hurting value, but then you also have the opportunity that they might throw you a bit more because of it too.

Well I wasn't expecting 6 grand on top of what they would offer me, but some compensation for it would be nice. I'll just show them receipts for all that has been done to the car, engine included, and show them how well maintained it was as well and see where it goes from there. Who knows? Wish me luck though.

 

[Torch10th]

Well I wasn't expecting 6 grand on top of what they would offer me, but some compensation for it would be nice. I'll just show them receipts for all that has been done to the car, engine included, and show them how well maintained it was as well and see where it goes from there. Who knows? Wish me luck though.

Definitely. Your best bet is to be informed and professional when dealing with your claim representative.

 

[Kevins89notch]

NEVER take their first offer. I had bought a clean 98 civic for $3300 I think. I hit a deer and totaled it 6 months later. They offered me like $3,041. I said it was worth more, as my $3,300 price was a pretty damn good deal at the time. They sold me to send in some proof of what I thought it was worth. I spent 10 minutes on craiglist and ebay. I printed out 7-9 ads, and faxed them over. They all had prices of $3,400 to $4,400. They called me 7 days later...(got to toss in a little extra info. They only cover a rental for like 4 days after a car is totaled and an offer is issued, so I feel the slow response was because a normal person would be needed a car ASAP, thus call them back and just ask for the first offer)...and offered me like $3,772. I ended up buying a 99 for $4,500, so I didn't exactly 100% come out even, but the 99 was cleaner with less miles.

 

[Sick SVT]

For those who have been in my position before, what's the process?

I am in the business and have been for years.

1. Would you consider this totaled, and do you think the insurance will as well? My answer would be absolutely yes. Even if the insurance says they want to fix it, I'd dispute that. From what I see there is definitely frame damage and I know the car would never drive right again.
yes it is totaled and yes the insurance will total it. They will not want to fix it with the floor buckled and yes there is definitely frame damage

2. What should I do about the engine? It was replaced and we have all paperwork that came with it, along with how many miles were on the car when it was replaced. I would say the new engine has +/- 15k miles on it. It was bought as a brand new crate motor and was around $6000 not including labor. Would this make a difference in what the insurance company offers me for the car? I definitely want to be compensated because the fresh motor definitely adds value to the car.
it will add a little value but not what you think it would and not compared to what you paid for it

3. What about aftermarket parts I've installed on the car: rotors, pads, clutch, clutch cable, quadrant, head unit, speakers, etc. I have the OEM speakers, that's it, so everything I take off I will have nothing to replace it with.
my suggestion is let them total it and then ask what the buy back is. You would be surprised what the buy back is. Pretty cheap compared to the money you have in mods in it.

4. Will I be able to take what I want off the car after they total it? I'd gut the car down to the frame but I'm pretty sure that even if I was allowed to, it would take away value from the car and the insurance would offer me less for it.
you would only be allowed to take what you can replace with stock. You will not be allowed to strip it and then give it to the insurance. Once the insurance gives you a cash out on the claim they own the car. You will need to buy the car back from the insurance and then it is yours again to strip it.

5. What can I do if the insurance offers me less than what I feel the car is worth? I suspect they'll be looking at the KBB value and factors such as sales prices for the same car etc. KBB has my car valued for right at $12000, but I feel the car is worth more than that. It's got practically a brand new motor, new clutch was installed when the motor was put in, new rotors, pads, tires, head unit, speakers. On top of that, it was the cleanest Mach 1 I've ever seen.
the insurance will use comparable cars to yours in the market you live in. If they are unable to find a car like yours with comparable mileage they will expand the search to a larger area. Do your own research and come up pith 3-5 comparables from auto trader for documentation. Again you will not get your money for the mods back out though. If you have a spot in the garage I would recommend letting them total the car, buying it back, towing it to your house, strip the parts you want, then sell the shell to a salvage yard for the usable sheet metal. They will come tow it away.

Pm me if you have any questions. I have been doing this for years and have worked with most major insurance companies. Good luck and sorry for the loss of a nice Mach.

 

[wieduwilt]

Pm me if you have any questions. I have been doing this for years and have worked with most major insurance companies. Good luck and sorry for the loss of a nice Mach.

Thanks. PM sent.

 

[Jefe]

For those who have been in my position before, what's the process?

File the claim, get an estimate, insurance company looks it over, decision/payout.

1. Would you consider this totaled, and do you think the insurance will as well? My answer would be absolutely yes. Even if the insurance says they want to fix it, I'd dispute that. From what I see there is definitely frame damage and I know the car would never drive right again.

Totalled. We don't have frames. Its a unibody.

2. What should I do about the engine? It was replaced and we have all paperwork that came with it, along with how many miles were on the car when it was replaced. I would say the new engine has +/- 15k miles on it. It was bought as a brand new crate motor and was around $6000 not including labor. Would this make a difference in what the insurance company offers me for the car?

Did you add extra coverage on for modifications/aftermarket equipment? Show them the receipts/proof. It should factor into the estimate/payout

4. Will I be able to take what I want off the car after they total it? I'd gut the car down to the frame but I'm pretty sure that even if I was allowed to, it would take away value from the car and the insurance would offer me less for it.

No, unless the shop that has the vehicle lets you in or you have notified the insurance company of what you need to get out of the car before its deemed a total loss

5. What can I do if the insurance offers me less than what I feel the car is worth?

Find similar cars like it for sale or search completed listings on ebay for sale prices. Show them receipts, pictures, etc and they should work with you

What company is the claim through? Keep us updated

 

[Jefe]

I had a clients car totalled last week by MetLife. KBB was $4800-5200. They gave her $6100

 

[wieduwilt]

Thanks for the help guys, it's going through Hartford insurance. I will be getting a claim hopefully tomorrow for a quote on how much they will give me for the car and a salvage title if I choose to buy it back and part it out.

 

[wieduwilt]

Scratch that, they appraised the car today, took down my statement of what happened during the wreck and the claim should come Monday for both options.

 

[DEVIL]

More than likely your only option to recoup your money will be to buy back and part out. I've done it with my bike a couple of times, but I just rebuild it myself with some new parts, mixed in with the old ones.

 

[FourSixPony]

This probably dont help but my cousin got his Foxbody appraised by a well respected guy and he also worked with insurance companies when they had to go to court, anyways it got appraised for $9,000, then he ended up getting in a accident and the insurance company totaled it out and they only wanted to give him $6,500 for it, I dont know exactly what he did but he showed the appraisal and they gave him the $9,000. The appraisal cost $100. I dunno if you ever got it appraised or not.

Edit. Nm just seen you got it appraised.. what they appraise it for? Thats probably what you will get.

 

[wieduwilt]

Well, I got some good news from the insurance company today. They're offering me $11,500 for the car itself, but they are waiting until I get the receipt for the new motor that's in it and I was told to expect about a $3,000 increase. Either way, the best news is that they buy back is only $1,200. So, I'll be taking that option to buy the car back and once that happens it'll let the piranhas of SVTP go at it. I'll make a pull-a-part thread when I've got the car sitting in my driveway. :banana: