by bceagle9 » Thu Oct 29, 2009 02:28 pm
My husband was in a accident which left the front of his 2004 Chevy Blazer (90,000 miles) severely mangled, undrivable, pieces everywhere.... The insurance company recommended we tow the vehicle to a preferred repair shop. I did so under the impression an independent 3rd party would do adjusting and then repair shop would use that. Well repair shop also did the adjusting. They inflated the ACV and lowballed the estimate to get the repair job and avoid a total loss.
I told the insurance company I was just going to take the repair $$$ and buy another vehicle and sell the Chevy for scrap. (When I told the repair shop this they then tried to sell me a car). The insurance company sent us 75% of the repairs amount ($3,000 out of $4,000) and said they would not give the rest ($1,000) without a completion of work - meaning I would have to repair it to get the rest - they said they were required to do so under Mass law but would not cite any specific section. I have searched high and low the law in Massachusetts and cannot find anything that requires me to fix a car I do not think will be worth the $$ going in to it. I also cannot find anything in my policy on this that would require me to do this.
Any advice? Thanks
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I told the insurance company I was just going to take the repair $$$ and buy another vehicle and sell the Chevy for scrap. (When I told the repair shop this they then tried to sell me a car). The insurance company sent us 75% of the repairs amount ($3,000 out of $4,000) and said they would not give the rest ($1,000) without a completion of work - meaning I would have to repair it to get the rest - they said they were required to do so under Mass law but would not cite any specific section. I have searched high and low the law in Massachusetts and cannot find anything that requires me to fix a car I do not think will be worth the $$ going in to it. I also cannot find anything in my policy on this that would require me to do this.
Any advice? Thanks
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Posted: Thu Oct 29, 2009 03:01 pm Post Subject:
No one is forcing you to repair the blazer. They just wont pay you the full cost of the repairs if you don't repair it.
And why should they?
If you are retaining the vehicle so that you can scrap it, why would you be entitled to the the cost of repairs you are not making?
I'm not sure why they are sending you 75% of the repair estimate. It would make more sense that they are paying you the ACV minus the salvage value.
By the way, based on your sense of fairness I would like to offer to sell you my car for 75% of it's value but I get to keep the car. Get it?
Posted: Thu Oct 29, 2009 03:04 pm Post Subject:
Well it appears Mass has some unusual policy language I've found the following:
Per Mass DOI site:
I got $500 to replace my stereo. Can I use the money for something else?
This would apply to ANY first party loss/damage.Liability Claim
If you are collecting from another driver's company, you're entitled to the cash. Do what you want with it.
Comprehensive/Collision Claim
Your own company may not pay the full replacement cost until you actually buy the new stereo. And if the stereo did not come with the car, you may need to show the company receipts to prove you had it in the first place.
Sorry, check your policy I'm sure under "how losses are settled" or some such wording (under collision/comp coverages) you'll find where they can make partial payment until repairs are completed.
Sorry for you, but glad for the knowledge. I had no idea that ANY auto policy in ANY state had this type of language, see it in HO policys all the time. At any rate, appears the adjuster is correct.
Fishman, you mis-read the OP...his/her vehicle is NOT a total loss, it's repairable.
Posted: Thu Oct 29, 2009 03:10 pm Post Subject:
They did not total the car because as I indicate the ACV was inflated to $8,000 so the repair company/adjuster could get the cost amount under the 75% cap. $4,866 in repairs. I am not asking them total the car which means they would pay me the ACV $8,000 less salvage (which is probably no more than 1,000). I am regarding the vehicle as totaled as putting $5,000 + in repairs for a car that will be worth less than that repaired seems ridiculous.
They are saying my car has $4,866 in damages - why not just pay me that amount. I even offered to sign title over to the vehicle to them so they can take salvage. Get it?
Posted: Thu Oct 29, 2009 03:12 pm Post Subject:
Is there anything unfair and deceptive having a less than independent insurance adjuster?
Posted: Thu Oct 29, 2009 03:21 pm Post Subject:
Poster contact a WreckCheck fascility in Boston, they may have resources to help you. Just google wreckcheck and Boston and you'll find info on how to contact them.
Posted: Thu Oct 29, 2009 03:39 pm Post Subject:
They are saying my car has $4,866 in damages - why not just pay me that amount.
I agree with you, and had this been a third party claim (per your states DOI), you would've gotten the full repair amount, then been free to do whatever you wanted. However, your state has allowed policy language (first party) to the contrary...I even offered to sign title over to the vehicle to them so they can take salvage. Get it?
That would NEVER work, since they do not consider your vehicle a total loss.My suggestion to you (since it appears you have no choice in the matter) would be to take their 75% and sell the blazer..depending on what is damaged on the vehicle you may be able to recoup this 25% or so...
I honestly don't think they have inflated your vehicles ACV at all. If you'd care to post 'which' blazer it is ( ls, 2 or 4 door, 2 or 4wd, or xtreme), as well as the options, I'll run a value for you. Based on a 2dr, 2wd with your mileage (and zero options) I'm getting 6950.00 so I'd bet they are dead on the vehicles ACV...but again I'll be happy to check it for you.
Is there anything unfair and deceptive having a less than independent insurance adjuster?
I don't get your point here. Was it not your company's adjuster that came to this conclusion? Also if your policy has an appraisal claus you can exerise that right, however it's your dime, and before I'd spend any of my money, I'd independently determine your vehicles ACV first... Because I doubt there is an error here, and that's your beef.Posted: Thu Oct 29, 2009 04:19 pm Post Subject:
The repair shop recommended by the insurance company also served as the adjuster so they stood to gain by manipulating the ACV. I thought they were required to use an independent third party adjuster - I realize I do not have to use their repair facility but the car would need to be towed to another facility and the clock is ticking. I got around $6,950 as the ACV on NADA but auto trader shows discounts because mileage is high and there is also a CARFAX major accident prior to this one. Also the repair facility's ACV was close to $8,000 - car had no added extras and was in best fair condition. Their costs conveniently fell just under the 75% threshold for total loss.
I guess I am disgruntled because my insurance company recommended this repair facility and I was always under the impression an independent third party would be doing the adjustment and submitting that to the repair facility and insurance company. My dealings with this repair facility (also a car dealership) and specific conversations with individuals there have lead me to believe they are shady and have their own motivations that are not serving my interests as a consumer nor the insurance company for that matter.
Oh well - live and learn - thanks for the advice.
Posted: Thu Oct 29, 2009 04:26 pm Post Subject:
Maybe I missed something... OP, you agreed to take it to a prefered repair shop. This _indicates_ to the insurance company that you are going to have it repaired there. The shop writes the estimate and handles the inspection for free as they almost always then repair those vehicles. So unless you speak up, the insurance company is probably going to issue the check payable to you and the shop. They might do it other ways, such as issuing partial payment to you and partial payment to the shop (though, I don't think this is a good idea). In any case, you simply need to tell the carrier that you are not going to have the vehicle repaired but you still need to be paid for your loss. They may not like it, but oh well. But keep in mind, if you have a lien on the vehicle they should then put your name and your LH's name on the check. Your LH will not sign off on the check until the vehicle is repaired or the loan is paid.
Again, preferred shops work with carriers and get paid with the probability that they are going to do the work. The shop does not like it when they inspect a vehicle and then they don't get the job... but there is not a lot they can do about this. The shop and insurance company may offer some resistance for this reason but in the end, _you_ are owed for the loss.
Posted: Thu Oct 29, 2009 04:34 pm Post Subject:
Last time I was in a vehicle accident, the car was taken to a preferred repair shop. My insurance company at the time sent Viking Adjusters out to the repair shop to write up the estimate for repairs which it then submitted to my insurance company who then approved it. The repair shop was provided the estimate and then they started repairs. The shop had to ask for three supplements for additional repairs not originally assessed by Viking. The insurance company then approved those. Clean transaction - no conflicts of interest.
In this situation, take out Viking and give repair shop both roles = conflict of interest. They served as the adjuster. It may be legal and may be ordinary course of business but it seems unfair and deceptive.
There is no lien here, I am not asking for their ACV less salvage, I have every intention of selling car for scrap, the insurance company tells me Mass law prevents full payment of repairs without proof of completion og repairs but they will not provide a specific cite to a specific law, the policy is vague...but I really am expending too much more energy on this.
Thanks all
Posted: Thu Oct 29, 2009 04:38 pm Post Subject:
b,
Is your vehicle a 2 or 4 wd? does it have the following:
running boards, luggage rack, power seat, windows, locks, sunroof, towing package, auto or manual tranny, cruise control, zr2 package and is it 2 or 4 door?
I was always under the impression an independent third party would be doing the adjustment and submitting that to the repair facility and insurance company
Rarely is there a third party appraiser, generally the ins company has their owner adjusters that look at the vehicle, or in remote areas, they may hire an independent. However, some carriers that use direct repair shops allow those shops to do their work for them. I agree that if that shop was the one determining the ACV (never heard of this myself)...then there is DEFINATELY a conflict of interest. It's in their best interest (the shop) to repair rather than total the vehicle, I do know some shop owners/managers (especially with the economy the way it is now) that think NO car should total...As I see it your only hope of getting anything changed is to determine a solid ACV. I'll run it for you on NADA, it would be a good idea for you to do a local market survey, all this requires is you calling a few (GOOD/DECENT) used car lots tell them what you vehicle was, and ask what they would be asking (and taking) for that vehicle if it was on their lot for sale.
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