So you've been in an Accident. Now What? Options

[rick 918-S]

There have a few posts in the last couple weeks and days about guys either crashing their cars or getting rear ended. I've seen these posts in the past and there always seems to be confusion that follws.

(IMG:style_emoticons/default/confused24.gif) What should I do?

I read lots of good intensioned posts about getting a lawyer and running to the doctor. I'm not going to comment on that beyond saying if your truely hurt seek proper medical treatment.

I don't want people to dirty up this post with trash talk about appraisers that are intensionally trying to screw them. These guys have a job to do. If you understood the pressure they are under you would not be so fast to bash them. Lets not do that here.

First, I'm not an attorney or an appraiser. Nothing here should be considered legal advise or an iron clad method of settling your insurance claim. The following are mearly suggestions and tips that may help you to get a proper value and maybe settle your claim with less drama.

I want to clear up a couple things. A guy that works for an insurance company viewing automotive related damage, writting estimates and determining value for settlement are called appraisers. I'm not sure this applied to every state but I beleive in most states these guys do not need a license. Adjusters on the other hand do.

So you've been in an accident. your car is damaged. the following applies whether your dealing with your company or the other parties carrier.

DO YOUR OWN RESEARCH ASAP!

I worked for an insurance carrier as a adjuster. I was a multi-line claims rep. I handled bodily injury claims, large property losses and auto physical damage claims. The compnay also had guys that just did auto and others that just did liability. I wore many hats. I attended many training sessions over the years and made small talk with many appraisers. Over the many years I have been doing this I met approximately 6 guys that had a car hobby. American muscle cars. Not one of them even knew what a 914 looked liked.

This is why it is important for you to do your own leg work. If your not going to do this don't complain when you get a low ball offer for damage and salvage value. Most all appraisers rely on a data base that is tied into Car Fax, auto trader, and based on your zip code local news paper classifieds among other sources. These pull information for comps to assist in value. This is without regard to actual condition. Most of the guys were college guys hired to push paperwork out the door.

With the demand the carrier puts on these appraisers they must use these comps to set value and make offers. These guys are scored on the speed in which they settle and close a file. Their job depends on it. They are not trying to screw you they just only have so much info at their finger tips and have to do the best with what they have. Are you starting to see why it's so important to do your own leg work?

Lets say you were rearended like Adam and another guy on the Club site. For the sake of this example let's say you are only have liability on your 914 and you need to try and recover your damage directly with the appraiser of the guy that smacked the back of your car. Insurance appraisers settle damage and apply value based on comps. Here's a scenerio, you say, "I have all the receipts for the work on my car. I replaced the brakes, replaced the clutch and rebuilt the front suspension. I should be paid for that"! You try to agrue from the prospective of the value of your car. This is a common position. I've heard it a couple hundred times.

The standard answer and logic behind coverage is as follows. If you don't do maintenance on your car so it's safe to drive and provide you with a means of moving you from one place to another it will fail and leave you on the side of the road. So, all cars need maintenance, new tires, wheel bearings from time to time, tie rods and ball joints etc.. The maintenance you did to your car is a requirement for all motor vehicles and all motor vehicle owners. It does not add value over the average vehicle.

Here is an example of why I'm telling you how important it is to do your own research. Let's say for the sake of this next example you let the appraiser present you with an offer before you meet with him and hand him a stack of information from the best sources you can find. First, if he works directly for one carrier as an employee he made notes in a company file that can not be deleted or changed. This makes it hard to go back later and fix up the file and pay more money. His notes will be based on the comps he developed with no knowledge of classic cars, 914's and no knowledge where to get the best information of value. I will give you an idea of what his sources will develop.

For this example you have a 1973 2.0 35,000 miles appearance group.

Sources will likely be: NADA/Kelly Blue Book, Car Fax, Auto Trader, News Paper.

Comp 1: The computer generated report will likely list 1976 914 carb'd needs work but is a solid project car 1895.00 OBO.
Comp 2: 1974 914 1.7 mileage unknown battery relocated to the trunk, runs good. (photos show rust in the long but no sag) 2500.00 OBO
Comp 3: 1973 914 converted to V8 custom interior metal flake paint (photos show hell hole rust and a rats nest of hoses and wiring that would scare the hell out of the Jack Ass crew) Must sell! 3995.00 Firm!

Here's the example of the average value that these cars will bring: $ 1895.00
$ 2500.00
+ $ 3995.00
$ 8390.00
Divided by three give average market value = $ 2796.66 (IMG:style_emoticons/default/WTF.gif)

So based on the comps in the market at the time your offer for a totaled 914 would be $ 2796.66 plus tax title and towing.

That's how companies reach market value. All the comps are the same year or newer than your car. Even if you say, hey my car is worth $9000.00! here's the next step. Ok we will toss out the lowest car and refigure the market value.

Your car: $ 9000.00
Comp 2: $ 2500.00
Comp 3: $ 3995.00
total: $15495.00
Divided by three: = $ 5165.00 Still! (IMG:style_emoticons/default/WTF.gif)

Now, present your comps: three cars you researched to be close in condition to yours all around the value of your car or more valuable than your car. Presented to the appraiser befroe he ran his comp numbers. This is a different scenerio entirely.

I'll add more to this later. I have to head out for awhile. If you feel compelled to post in this thread don't quote this because I'm not done yet.