Re: "Total Loss" lowballing 4553

My sis was rear ended a few weeks ago in her new Honda Accord. Nationwide Ins had her go to one of their approved shops and they valued the damage around $14,000. She got an attorney who had the car moved to an independent

3rd party shop and they valed the damage at close to $18,000. They wound up totaling the car. She still owed $20,000 on the car. They only way she was able to get the difference was the fact she had "gap insurance" (never heard of it) and it paid the difference (or gap) between the damage and the payoff of the car. She still couldn't get any more for a down payment on another car. Even though it wasn't her fault, she was out of the money she had into the car.

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Apparently, insurance company repairs as well as 'total loss' claims are > lowballed as a general practice. I just read an article at >
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that says that you can get on average, the ~$2K > difference needed to get a replacement ride (vs. trade-in)... for sure, if > it was not your fault. Anyone got any experience with using a local 3rd > party appraisal to get more $$ back? > > > > >
Reply to
CopperTop
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Insurance company is not obligated to fill the gap but they need to give you enuf to replace the car with equivalent wheels (less the deductible).

Reply to
Art

Talk to them about your sore back !!!

Reply to
sqdancerLynn

6Ph.10827$yo3.7888@trnddc04...
Reply to
Dipstick

Reply to
philthy

You seem to be confusing the damage amount with what the car's was worth. If they totaled the car, they would pay her what it takes to buy another car just like it. You seem to hint they gave her $18,000. That is to buy her something to drive. The amount of the damage is not really what they pay for a total loss. Make sense?

The fact that she owed more than the car was worth was true both before and after the accident, and it has nothing to do with insurance or the accident. The problem was already there. The person causing the accident isn't responsible for your sister's money management, no matter how good or how bad.

"Gap Insurance" sounds like a great idea for people that don't have any money. It's better to have money, but hey, if you can't hang onto it, you don't deal with surprises too well.

Reply to
Joe

They should ban people that can't handle money.

Reply to
Joe

messagenews:pW6Ph.10827$yo3.7888@trnddc04...

Now that cars are more expensive, and can be financed for a longer period ot time, this is a common occurance. It is easy to be in a situation where more is owed than the car's market value.

Usually however, Hondas don't depreciate as fast as other makes.

-KM

Reply to
kmatheson

It was also common 20 years ago. Probably more so today, however.

Depends on whether you are buying or selling, and how badly you need to do one or the other.

Reply to
Dipstick

I can't believe no-one in this thread has used the common term for this situation, so I'll be the first: It's called being upside-down.

Bill Putney (To reply by e-mail, replace the last letter of the alphabet in my address with the letter 'x')

Reply to
Bill Putney

Reply to
Dipstick

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