by bnieves » Wed Jul 20, 2011 01:10 am
I want to know if what they're doing is legal. they said my car is a total lost and it has dents from the hail but my car is in very good driving condition. I have two options 1- is take it as a total lost and get $7,000 and call it a day or get a check for $ 4,000 dollars give them my car title in return for another title and then I could only get liability insurance. because according to them my car is a total lost. So they screw me regardless. I just finish paying my car note. I feel I'm getting ripped off. They are doing that with a whole lot of people. When I say they I mean State Farm. What can I do.
Posted: Wed Jul 20, 2011 02:38 pm Post Subject:
Claims like yours are settled on an "ACTUAL CASH VALUE" basis, which means the replacement cost of the vehicle minus the depreciation. If the damage is more than about 75% of the depreciated value of the vehicle (varies according to state law), the insurer may consider the vehicle a total loss.
You are not being "ripped off" if the insurance company is complying with state law. If you feel that is a ripoff, then vote for someone else to represent you in the state legislature who will work to change the law for you and everyone else.
It does not matter how much you paid for the vehicle, whether your loan is paid off or not, or the fact that you just put new tires and paint on the vehicle.
You don't tell us anything other than the car has "dents" due to hail. No broken glass? What kind of parts have to be replaced? The entire body? What is the estimate of the cost to fix the "dents". And what is the make, model, and production year of the vehicle.
You have more than just the two options you state. Option 3: You can abandon your claim and pay for the repairs yourself. Then, if the actual cost of the repairs is less than the total loss threshold under state law, you can now reopen your claim and argue with the insurance company that they have a responsibility to reimburse you under the terms of the contract.
If you don't have the money to pay for the repairs, then you might choose to consider one of the offers on the table, or, Option 4, continue to argue for a better settlement until they flat out refuse to discuss the matter further or satisfy your demand. Option 4a is to hire a public adjuster to do the arguing for you.
If all else fails, then Option 5 is to seek an attorney who can evaluate your situation and determine whether there is a better solution available by suing the insurance company. That's your last resort.
In the meantime, Option 6 is to file a complaint with the state Dept of Insurance for assistance with your claim. If you get involved with an attorney, they are prevented from assisting you.
Posted: Thu Jul 21, 2011 12:41 am Post Subject:
Thank you for your response. that made sense. I had so many people tell me that i was getting ripped off I didn't know who to believe. Now I can decide what to do.
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