Advice needed: Our car is a total loss (see below)

On July 24th, my wife got into an accident that wasn't her fault. Long story short, the other driver's insurance deemed that my car's repair price is economically unsustainable ($8,701 worth of damage). The insurance company has offered a little over 10K (I won't reveal the exact price) to pay for the car. It is a 2004 Honda Accord LX 4 door sedan with 77,500 miles on it. We have had this car for over 5 years, and it's all paid for. I am wondering if I should accept the insurance's initial offer (the offer is just under $600 of its Kelley Blue Book suggested value).

My father has suggested that I call my own insurance company and find out if that offer is a good idea. We have already decided on our next car - a Honda CRV. True, we have to take out a little loan, but the money I receive from State Farm will pay about 55% (or so) value of the car, and the loan (probably from our credit union) will help cover the rest.

I'll call my insurance company now, while I mull this over (we have 3 days because that's when our rental car is due back, and then we'll need that car then)

It is just a fact of life. They give you blue book value, not replacement value.

be getting a new car at almost half price. With over 77,000 miles on It, you're getting into replacement of major parts territory. Things start to go and I thing you'd regret not doing this. The Honda CRV is a great car. I have a friend that has one and loves it. I have a Honda Pilot and cannot tell you how great I think this car is.

New car@half price? You can't beat that.

I wonder would happen if you counterclaimed with explanations (features on KBB).

I'd probably just take the money. Its close to blue book and you're under the gun with the rental.

Look at it this way, 10K in pocket is much better than them giving you 8700 to fix your car. Repaired cars are always fucked up.

Call the consumer affairs department of your state insurance department. Find out what the requirements in your state are for valuing total loss vehicles. After you find that out check around to see what the market value of your old vehicle might be under that standard.

Here an insurer must consider classified listings for comparable vehicles in determining market value. You may find the market value for your particular vehicle (mileage and options considered)varies considerably from blue book value.

You should also consider that the value of your vehicle may be greater than market value if you have recently done major maintenance/improvements that would be expected to prolong the life and performance of the vehicle.




FYI - I spent about a decade working as a regional claim manager supervising a multi-state area.

Search all the used car sites.

Compare that price with the blue book value of the car and if you above the blue book and comfortable with the settlement. Take it. If it is anywhere close to what you would pay to replace with the same car (make, model, year and mileage) go with the new one.

One more thing, You will never be satisfied if you have the existing car fixed, they just are never the same.

1. never accept "their first offer" ... counter it with what you think the DAMAGES truly are!

2. you had a perfectly good automobile, and NO CAR PAYMENTS ... why should you NOW have a huge payment, just because someone else was responsible for taking that "life situation" away from you?

3. consider that YOUR insurance record, and thus your premiums, could be affected... even though you may not have made a claim against your policy, THEY might "chalk one up" as your being a greater risk simply because YOU did not avoid an accident... call your insurance co. and see what they say about this (and figure THAT into your "counter")

4. with a NEW(er) CAR, your insurance premiums will likely be HIGHER that those which you were paying ... call your insurance co. and see what they say about this (and figure THAT into your "counter")

bottom line: NOT only do you need your car replaced, because of someone else... but it is going to COST YOU additional money, out of your budget... MONEY that you otherwise would not have spent (on a car or on insurance for same). Figure out what that ADDITIONAL COST will be.... and add that to your car's value. If you do not, then you are being cheated... your life has been changed through no fault of your own (or your wife).

Talk to a lawyer, about each of these things... or at least consider them when you make a COUNTER to the currently offered settlement.

...just my 2cents

Plan on spending anywhere from a minimum of 25% to 33% of any settlement on those fees - and over 50% of any recovery if the matter actually goes to trial or to the appellate process.

If there is an offer on the table then the insurance company is acknowledging coverage and liability. The only issue remaining is the amount of damages. At this point thatlawyer is going to have to get a significantly larger settlement to pay his fees and get the same amount of money in your poacket. Since you are talking about property damage that isn't likely to happen.

Of course, I'd certainly encourage you to go get that legal opinion anyway.

initial consultations are usually FREE

SIGN nothing as if "retaining a lawyer" to represent you... just present the situation as outlined in my previous reply, and ask their advice (in fact, get a FREE consultation from more than one lawyer)

serve the purpose of lawyers getting clients and earning fees. Free consultations are sales pitches. You may pick up a few nuggets of basic legal information. But you'll not leave iwth enough knowledge to represent yourself.

I'd recommend using free consultation information to guide legal decisions about as much as I'd recommend doing surgery on yourself.

There is nothing saying the OP must use the money to buy a new car. There are plenty of used vehicles out there in the $10k range with less mileage than the car that was totaled. If the OP wants to buy a new car with the money, that is his/her choice. It sounds like the insurance company is likely paying more than what the OP would have been able to get as a trade-in.

It sucks that we are forced into these situations through no fault of our own, but there is no way to change what has happened. A lawyer is probably not going to be able to recover enough additional money to make his services cost effective, and it seems he has zero sway over how the insurance company calculates its future premiums. It still doesn't hurt to shop around every few years.

I am suggesting that the victims consider ALL REAL COSTS INCURRED (not just the replacement of the vehicle)... and then "counter" the current offer.

I also suggest that the VICTIM be STUBBORN. After all, the INS COs make BILLIONS and spend at least MILLIONS to get out of these situations as cheaply as they can... I presume that the VICTIM is not a billionaire... thus I am suggesting that the VICTIM should only ask that they be fair about any "final settlement"

because we run older used cars and it's hard sometimes to come up with a running machine for $1000 on a moment's notice. We've had a couple of cars totaled on us. If the car is drivable, or if you can make the repairs yourself, you can have the insurance company buy the car at blue book, then you buy it back at scrap value. What this means is that you get the car as is, and it's up to you to repair it or not with the money left over.

This works out if the damage is cosmetic and you don't mind driving around with a mismatched fender or a door that won't open.

Look at used cars. www.autotrader.com I was able to find quite a few 2004 accords for around $10K, some even cheaper with lower miles than you had, and some more expensive or with more miles. Pick a replacement and if it's slightly more than the insurance offers, point out that it is a comparable replacement and ask for a bit more.

1) Any recent repairs. (Receipts will help.)
2) The expensive baby seat, trailer hitch and compact disk collection that were in the car when towed away.
3) Costs for license plates, city stickers, parking stickers, etc.

Mine is and always has been. Were I in your situation, I'd read my policy and figure out what I have a right to expect to get as a result of my premium dollars. Then, if $10k seems like your best bet, I'd take it.

I'm assuming your wife wasn't hurt, which is the most important thing.

Good luck.