Why do you say that the fair market value of the car isn't covered by insurance?

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Sep 9, 2024
11:51:31am

Jay Rick All-American

Why do you say that the fair market value of the car isn't covered by insurance?

Assuming that the policy has comprehensive coverage (not just liability), a first-party claim against his own insurer would be for the fair market value of the car. The insurer would be required to pay the fair market value of the car, measured immediately prior to the accident.

His own insurer would then go after the at-fault driver's insurer to get reimbursed.

You don't get the cost of the repairs you made to your car, but you do get the fair market value of the car. It's as simple as that.

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Jay Rick

Previous username: jayriggity
Bio page: Jay Rick
Joined: Feb 10, 2013
Last login: Jan 6, 2025
Total posts: 29,073 (5,263 FO)

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Messages

Author

Time

Wasn’t sure how to categorize this one… son was in a car accident. Insurance carrier is giving a really low offer

SolidBlue All-American

9/9/24 7:45am

RE: Was sure how to categorize this one…

9/9/24 7:48am

So your son gets $5645 for truck he paid $4500?

TheHop

9/9/24 7:54am

They are still part of the loss.

SolidBlue

9/9/24 7:56am

Insurance doesn't care about those things - they only care about the value of

MacroCougar

9/9/24 7:58am

Not exactly true - Here’s what I did

9/9/24 8:08am

You said he got a really low offer.....

TheHop

9/9/24 8:02am

What something cost you and what it is worth are 2 different things.

John Doe

9/9/24 8:10am

The at fault driver is responsible for your losses. His losses include the recent work on the vehicle

SolidBlue

9/9/24 8:15am

Friend, that is not how the law works when valuing property damage.

Jdoc

9/9/24 8:16am

Okay, this is actually what I wanted to talk about.

SolidBlue

9/9/24 8:25am

He can try, but insurance will not

Jdoc

9/9/24 8:30am

Nope. It's simply a question of what is it worth. If he can demonstrate that

ebv

9/9/24 8:50am

I agree with you that is most likely what will happen in small claims, but

Jdoc

9/9/24 9:18am

If he files in small claims courts without settling with the insurance first

oilman

9/9/24 9:58am

Yes, his insurance company would have to defend him, but the only thing they

Jdoc

9/9/24 10:27am

Why do you say that the fair market value of the car isn't covered by insurance?

Jay Rick

9/9/24 11:51am

I didn't say that. Fair market is covered. The other losses he is claiming are

Jdoc

9/9/24 12:04pm

Good luck getting an insurance company to agree with you. Their argument would be that they are not responsible for the

John Doe

9/9/24 9:41am

Sure they do. You’re entitled to the market value of the car. Not the amount

Jay Rick

9/9/24 8:06am

That’s not a really low offer.

Superkid

9/9/24 7:57am

Say your neck hurts and you can probably get that number up to 10 grand real

cougarfann888

9/9/24 8:00am

No insurance company is going to pay over market value because you paid for some

Skeptical Optimist

9/9/24 8:01am

My first thought, what kind of torque converter is 3 grand? That’s complete trans rebuild $$.

valcorger

9/9/24 8:03am

Also, why would you need a complete break overhaul?

TheHop

9/9/24 8:05am

1997 - sat in a parking lot for 8 years unused. The hydraulic fluid gummed up. They flushed it 5 different times and it

SolidBlue

9/9/24 8:21am

F-250

SolidBlue

9/9/24 8:16am

Find a new repair shop. I’d recommend C&S Auto & Truck on Limonite in Jurupa Valley.

valcorger

9/9/24 8:23am

It was more than just the torq cov. That was just the biggest part of the repair. But thank you for the referral.

SolidBlue

9/9/24 9:57am

Talk to Sonny (owner) or Steve. Tell them Glenn sent you.

valcorger

9/9/24 10:52am

The first offer from insurance is rarely serious. Time to negotiate.

Ferb

9/9/24 8:04am

Unfortunately, those kind of repairs just don’t have much value

KYU

9/9/24 8:21am

It depends. Parts and repairs don't add value. But

JarJarBeeps

9/9/24 8:25am

No, haven’t checked. Would you just use KBB or do you know of another resource for market value?

SolidBlue

9/9/24 8:30am

I'd peek at things like Facebook marketplace maybe. Asking price does not equal

JarJarBeeps

9/9/24 8:34am

Wait, if you haven’t checked the market and KBB, how could you possibly know

Superkid

9/9/24 8:48am

I was including the total investment- in the past I’ve had a totaled truck. The insurance covered all my recent repairs

SolidBlue

9/9/24 9:35am

That sounds like an insurance company that is very open to insurance fraud.

Superkid

9/9/24 9:40am

RE: No, haven’t checked. Would you just use KBB or do you know of another

ebv

9/9/24 8:52am

At the end of the day, the best you can do is make your case for as high a

David Lo Pan

9/9/24 8:56am

This ^^^. It doesn't matter how much he paid for it or how much he put into it.

Mtbcoug

9/9/24 8:53am

Imagine paying comprehensive coverage on a car you paid $4500 for.

OPINIONS

9/9/24 9:09am

You can push back by showing comps to replace it. An offer from the insurance

Thrill

9/9/24 9:49am

The only way to significantly increase the insurance payout is to tell them your

Thrill

9/9/24 9:51am

This thread is all over the place. Here’s the deal - there’s a difference betwee

Jay Rick

9/9/24 1:56pm

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