conflict of interest??/

by Boyd » Fri May 23, 2008 07:54 pm
Posts: 4
Joined: 23 May 2008

the insurer of the person who hit me (and who is at fault) is the same company valuing the loss. This is a conflict of interest as they are also responsible for paying it. what recourse is there?

Total Comments: 10

Posted: Fri May 23, 2008 10:14 pm Post Subject:

There is no conflict of interest as they have every right to determine the amount of the loss. However, legally it's your responsiblity to prove the amount of your own loss. But again, they have every right to confirm this information and dispute it if appropriate.

What is the alternative....? You simply tell them how much they owe and they send you a check for this amount?

In the same token as you mentioned, don't you have a conflict of interest as you actually suffered the loss?

You can agree or disagree to accept their amount, it's still up to you.

Posted: Sat May 24, 2008 05:45 am Post Subject:

This is a conflict of interest as they are also responsible for paying it.

Yes, they should be the ones legally responsible for paying you & thats why they have all the right to ascertain the value from their stand point.
See, as Tcope rightly mentioned there are a number of cases wherein we have found how people have obtained better claim-amounts than they have figured out initially by themselves.
BernardJoe

Posted: Sat May 24, 2008 05:58 am Post Subject:

Hi yeah, you may agree or disagree thats up to you!

what recourse is there?


If you could explain the estimates of your body shop over to the adjuster, probably that way you think of settling it. It might take a longer time than usual if the negotiations dragging far with you not accepting it.

Now, I believe another important thing would be the magnitude of the damage done. If it is worth a smaller amount, then I don't see any point in dragging it beyond.

See many a times, we do wish the insurer to get us something better than what it was prior to the damage. Now, I believe, it is the insurance co.'s duty to reinstate us to what we actually were & not to get us to something better. Am I right! good-luck, Plasticmind

Posted: Sat May 24, 2008 12:23 pm Post Subject:

I would agree that if I was able to solely determine the loss amount, that would be a conflict of interest as well. That is exactly my point - why should the adjuster have this? So you are saying "yes" that they do have a conflict of interest.

Neither the adjuster nor I should have a unilateral authority to establish the value of the vehicle as we both have a financial motives. I never suggested that I should be the one to determine this.

So given either party would have a conflict of interest determining the value of the loss, how is some form of independent verification applied or if you are not happy with the result, what recourse is there?

I am i Virginia and the vehicle is a 2001 Volvo Wagon in excellent shape and recently refurbished (tires, brakes, trany, etc) with $3500 in updates. 130k miles. It would run another 100k miles. So for me replacing this vehicle will be hard to do for $6500 that the insurance company says it is worth.

Is there a standard in Virginia that a 3rd party (i.e., one without a conflict of interest) must follow and/or are there laws that allow or limit my ability to sue? To replace this vehicle with something comparable to what I had I am going to have to spend probably $5000 more.

Posted: Sat May 24, 2008 01:48 pm Post Subject:

the insurer of the person who hit me (and who is at fault) is the same company valuing the loss. This is a conflict of interest as they are also responsible for paying it. what recourse is there?

No, we call these ''double insured'' losses happen all the time...generally two different adjusters (if possible) are given the claims....really only conflict if any is to try a little harder to make the 'claimant' (YOU)who is also the insured happy, thus not losing an insured...

So you are saying "yes" that they do have a conflict of interest.

NO he's not saying that...

Neither the adjuster nor I should have a unilateral authority to establish the value of the vehicle as we both have a financial motives

Lancer then who should? It's really pretty easy to determine a vehicles value (unless of course you have an odd ball of a car which doesn't sound like it's so), there are many many ways to do this...

So given either party would have a conflict of interest determining the value of the loss, how is some form of independent verification applied or if you are not happy with the result, what recourse is there

Your policy likely has an appraisal claus, that you can invoke if necessary...

I was going to check your values for you but you haven't provided enough information.....is it a V79 or V40? If it's a v70 then is it a 2.4t, t5, or xc turbo awd? Then need to know, leather seats, navigation system, power sunfrrof, with or without auto transmission and power seats? I will tell you that either car takes a 1200.00 hit for that 130k....

in excellent shape

No offense but EVERYONE says that...and with 130k it can't be show car (excellent) condition...but that's not what the value is based on anyway...it's a driver...think or look at your car with a decerning eye...is there ANY prior damage? Seats perfect? not one tear, burn, or rip? Not one door ding etc? They shouldn't doc your value for normal 'wear and tear' but they will for things out of that range....

recently refurbished (tires, brakes, trany, etc)

These items are considered maintence and will add no value at all to your vehicle...you expect a vehicle for sale to have brakes, tranny etc in good order...you 'might' be able to get alittle extra for anything ABOVE 50% tread on the tires...what EXACTLY do you mean by this?

$3500 in updates.

It will depend on what you mean by 'updates'..if you mean tinted windows fancy stereo etc...well likely not....or you can pull the stereo and just lay the factory one in the seat because it won't add near the value to the car that you paid and might as well use it in your new one (if that's what you mean)if you mean some special paint job explain that as well...(assuming you want assistance)....

It would run another 100k miles. So for me replacing this vehicle will be hard to do for $6500 that the insurance company says it is worth.

I agree....

To replace this vehicle with something comparable to what I had I am going to have to spend probably $5000 more.

I don't know about that...provide the additional information and we'll check for you....Here's the deal they owe you the ACV (actual cash value) of your vehicle no more no less...let's see if we can figure out what that is...first.......what system or reference did your company use to determine the vehicles value? And have you looked it over to MAKE SURE that everything is correct?

Posted: Sat May 24, 2008 05:23 pm Post Subject:

No, we call these ''double insured'' losses happen all the time...generally two different adjusters (if possible) are given the claims....really only conflict if any is to try a little harder to make the 'claimant' (YOU)who is also the insured happy, thus not losing an insured...

I may have misled you. A school bus hit a few cars including mine. the bus was at fault. My insurance company is not involved here. I am dealing with the adjustor for the insurance company that insures the school bus. They claim my car is worth $7400 and are offering that. The repair bill is likely higher, not to mention the cost of a rental car. I am considering calling my auto insurance and asking them for advice.

I am telling their adjuster I don't think the settlement is fair. They are telling me to pound sand and there is nothing I can do. Who made them Judge, Jury, and Executioner?

My point with the car being "excellent" was it was in great shape for a car with 130k miles on it. Not to say there wasn't a scratch or blemish in the paint or interior, but overall it is a nice car a nice to drive, and one I can count on to be reliable and last 100k more. That is what someone else would see too. it is also paid for. The new brakes/rotors and tires and tranny reflect that I have already poured money in to make this last - I agree with you it doesn't matter but this is more about what it is worth to me than what might influence an appraisel I guess, so I am not happy about being left with $7400 and having to find a vehicle that can match what I had without coming up with some significant cash-o-la myself.

The specs for the car are: 2001 Volvo V70 T5, leather, no navigation, Sunroof, 3rd seat, roof rack, auto, power seats.

Thanks for any help you can provide.

Lancer

Posted: Sat May 24, 2008 06:11 pm Post Subject:

I recommend that you review their valuation of your vehicle. I've seen many occasions where many options on the vehicle are not included in the valuation. Even the mileage could be incorrect.

If your using "excellent" as a book value rating, it would be incorrect.

You mention that the $7400 value is incorrect but you've not mentioned what you think it's worth. Many times I've made of offer to someone and they tell me my offer is too low. I asked them what the value of their car is and they tell me they don't know! Huh, then how do you know my offer is too low? Have you checked online what the asking price of your type of vehicle (I say asking price, as the selling price is going to be lower)? Have you looked over the book values? Have you shared this information with the adjuster, rather then just telling them their offer is too low?

Unfortunately the mechanical items you mentioned don't add to the value of the vehicle. They are parts that keep it in good working order, which is already reflected in the value of the vehicle. Without those items the vehicle would be worth less.

Posted: Sun May 25, 2008 11:18 am Post Subject:

Ok Boyd, yes, I did misunderstand I thought you were stating it was a double insured loss...

My point with the car being "excellent" was it was in great shape for a car with 130k miles on it. Not to say there wasn't a scratch or blemish in the paint or interior, but overall it is a nice car a nice to drive, and one I can count on to be reliable and last 100k more. That is what someone else would see too. it is also paid for


I totally get your point....like I said when people say ''excellent'' (which most do) all adjusters roll their eyes :roll: cause, well 'true' excellent just isn't possible with 130k....thanks for clearing that up...



Ok I ran your ehicle based on May's NADA central addition I get 9375.00, so somthing is wrong....(IMO)....you didn't say if there weas any prior unrepaired damage they are hitting you for....as tcope mentioned look at the evaluation, they HAVE to SHOW you how they arrived at this value....if you can't get any movement, or there is no unrepaired damage that is dropping this value, I'd go to my own carrier, have them (claims adjuster NOT agent)...give you their value, and just settle with the highest one....Something is definately a miss if my value and theirs is 2k different! No prior damage? are you sure? No hail damage? Large dents? ripped seats? Nothing? I just can't figure out the reason for this....unless there is prior unrepaired damage...let us know

Posted: Sun May 25, 2008 11:07 pm Post Subject:

Thanks so much Lori and Tscope

There was no unrepaired damage so I will take your advice, talk to my insurance company's adjuster, and see if we can get these guys to move their number

The figures I got for KBB Retail was $10,900. The figures I got from Edmunds retail was about $8800. both listed as "clean" not excellent

Posted: Mon May 26, 2008 02:20 pm Post Subject:

The figures I got for KBB Retail was $10,900. The figures I got from Edmunds retail was about $8800. both listed as "clean" not excellent

Again Kelly isn't a good reference for this, I know of no carriers that use it...I got my evaluation using NADA you can check it as well on line I think...many carriers use nada also some other computer products like CCC, Value net etc...be sure and look over (which ever) system they used have them mail or fax or email it to you...Maybe they missed something, or even have the wrong vehicle (it happens) and honestly Volvos are easy to do this with...(all letters and numbers :lol: )No excuse but it does happen...I'd check it top to bottom first...then go to your own carrier...I'm betting they may have valued it at a 40 rather than a 70...

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