[blueeagle65]

Short version - our insurance company is trying to give us aprox $ 1,000 less than the Kelley Blue Book for one of our cars that was destroyed as the result of a house fire (not our house). The amount they offered is less than retail for this make and model car that we've been able to find as well. Someone must know how to work the system to get a fair settlement from the giant (the same company we've been paying premiums to since the 60's). Help!

[Dynasty]

Take a look at your policy. The insurance company is probably correct. (depends on the state) Your claim is for actual cash value of the property (trade-in-value) not replacement cost.(retail) Check the Kelly Blue Book for trade in value and you probably see that the insurance company is making you a fair offer.

[The Great Fumar]

If you feel that your getting a raw deal and you don't need the car right away then drag your feet and inform the insurance . co. that your going to contact the state insurance commissioner and ask for an arbitrator.....But be prepared to do just that if they call your bluff....

fumar

[hlanders]

Why is your auto insurance carrier responsible? Where is the insurance company that insured the house (if not yours) that had the fire- there is a liability there that should come into play - Just wondering.......

[bimmertl]

Unless the fire was caused by the negligence of the homeowner, there isn't any liablility on their part.

As an example, if the home was struck by lightning, unknown arsonist, etc. homeowner not liable.

Better off using your own carrier, and let them pursue the HO in the even there is some liability. It's typically faster.

Unless your policy specifically states disputes regarding actual cash value are to be resolved by arbitration, no sense asking for it. Most don't offer that option under the physical damage coverages.

The auto carrier owes "actual cash value". Normally it's somewher between trade in and full retail value. Retail value is what a dealer could expect to sell the car for after it's reconditioned etc.

Kelley and other books are based upon data from some months prior to publication. Used car values most likely lower now than when book published. Doubt anybody can sell their car for "retail" value as established by some book.

Look around at car ads and see what the same car is offered for locally by both dealers and private parties to get a better idea. If you can find some examples backing up your position, let them know.

[elevatorman]

You may try to get the sales tax from the ins. co. If they tell you that they can get you a comparable car for $20,000, that may be true. But when you buy the new car if your state charges 5% sales tax it will cost you $21,000. Also title fees and tag transfer fees. We were once involved in an accident that totaled our car. The insurance co. offered us the value of the car, we held out for the taxes and fees. They gave the full amt. to us after a call from an attorney.