Totaled Car, Insurance Offer

[rduell]

I have a question for my 17-year old. He recently bought a car from a private party for $900. He only had it 10 days and hadn't even made a payment yet (was going to pay $100 per week) when a bus backed over the front of it. The car is now totaled and the bus garage's insurance is only offering $800 for it because they say it has way too much rust damage.

We went on to the KBB site and at fair condition it still books at $1400. Fair condition is described as rust damage that is fixable. The rust is not nearly as bad as the adjustor seems to think it is and DS was told that it would pass PA inspection.

Is there any recourse? He won't even get enough to pay off the car, not to mention the $200 in parts he put into it. He's pretty upset by the whole thing.

[disneysteve]

Is there any recourse?

First, make sure their offer accurately reflects the car and how it was equipped. For example, if it had any features that their offer doesn't account for. A few years ago when our van was totaled, the insurance offer was low. I reviewed it and found that they didn't include the driver's side sliding door. When I pointed that out, they upped the offer over $1,000.

Next, simply tell them what you posted here: KBB is $1,400. And explain that it was just purchased for $900 and he had done $200 in repairs already.

If you come down $300 from KBB and they come up $300 from their inital offer, you'll be at $1,100 which is exactly what he has lost.

All offers are negotiable. You just need to provide some solid data to support your case. In addition to KBB, search local listings for a comparable car and present those ads (hopefully showing the car can't be replaced for what they are offering).

[fairy74]

I agree with Disneysteve this is an opening offer, they really don't expect you to take their first offer. I'd write them a them a letter detailing your points above, also let them know again the accident was entirely their insured's fault and then pick an amount slightly higher than what you really want to accept. This gives them a little room to negotiate. If you tell them the exact amount you want they usually won't give it to you, because then it looks like they didn't bargain hard enough to their supervisors, so inflate you first request slightly.

[Scanner]

A good alternative to a lawyer is your state's dept. of banking and insurance too.

You could subtely suggest a complaint be filed through them. The state agency won't necessarily side with you but usually the threat intimidates them enough that they'll cave. It's a lot of trouble for them to respond to the ins. commissioner's office if they didn't follow procedure.

[JanH]

Your insurance company might have some suggestions on how to deal with it. They might even get involved for you if you don't get a fair deal.

[b4freedom]

One thought, 3 words: Small claims court. Be honost with the judge, tell them what the kbb was, what he paid, and what he put into it.

[PRICEPLUS]

I would make the counter offer at something higher than you were hoping to get. As was mentioned you may have to push the issue to get fair value.

[rduell]

Thank you all for your responses!

Good news...after DS being quite forceful with them (pretty impressive for a 17-year-old!) they are giving him over $1900 for the car!!! He is very happy with that.

He had 2 choices: they take the car and he gets $200 or he keeps the car and they give him $1935!? We have no clue why they did this. It doesn't make sense to us at all.

He has to get a salvage title for it and fax them a copy and then they'll issue the check.

[JanH]

Way to go DS! I have trouble with this at MY age! I'm sure you are proud of him!