From: sharen@iscnvx.lmsc.lockheed.com (Sharen A. Rund)
Subject: Re: How to fight AAA?
Organization: Lockheed Missiles and Space Co.
Date: Fri, 18 Dec 92 16:25:02 GMT

In article <1992Dec18.003144.4376@newsgate.sps.mot.com> mark@wdcwdc.sps.mot.com (Mark Shaw) writes:
>In article <1992Dec16.212345.532@TorreyPinesCA.ncr.com>, bw@TorreyPinesCA.ncr.com (Bruce White 3807) writes:
>|> My 1985 CRX was in an accident and AAA has deemed the car totalled.
>|> They have offered me $2700 minus $500 for "salvage value".
>|> 
>|> I disputed their assessment and sent in some copies of local newspaper
>|> ads in which private parties were asking $5100 and $6700. I also
>|> saw a 1985 CRX at a local Mitsubishi dealer. They were asking $6000.
>|> My car had A/C, the others did not. I told AAA that $2700 was far less
>|> than my car was worth, and that I wanted $6000.
>
>One thing to understand at this point.  Regardless of what you think your car
>may be worth if advertised for awhile, the bottom line is that most dealers, 
>repair shops, banks, insurance companies, etc. are only going to give you
>the wholesale value listed in the Blue Book or similar guide.  That is the
>"default value."   Totalling a car usually means that the cost of repair
>exceeds at least 2/3 of its wholesale value.
>
>|> Part of her claim was that since my car had 110 K miles that my car was
>|> not worth at all near the 3 comparables, which had either 60, 70 or 80K
>|> miles. The Blue book deducts alot of $ for 110K miles on a 1985 car,
>|> although in my opinion 15K miles/year is average for California. I've been
>|> told that the other used car guide doesn't deduct as much for high
>|> mileage.
>
>110K is high mileage for an 85 car in any state. It has a real effect on
>resale value.
>
>|> The other driver admitted guilt. He was insured with AAA. I am insured with
>|> State Farm. State Farm said that they did not consider the car totalled,
>|> and they estimated damages at $2700. The guy at the shop gave them
>|> an estimate of $2900.
>
>|> Any advice? Will AAA back off and try to settle with me at 4K? If I refuse
>|> their settlement do I have to sue them?
>
>|> How many more miles would it be reasonable to expect on my current engine?
>|> How much would it cost to get a new engine if the current one will run
>|> for another year or two?
>
>Expected life doesn't seem to affect value as much as actual life used up.
>
>|> A friend here at work suggested that I go to a dealer, get a higher repair
>|> estimate, hopefully 4K, submit the estimate to State Farm, and then have
>|> State Farm cut me a check, and then I simply wouldn't repair the car.
>|> Instead I'd try to sell the car in the Auto Trader as a salvage car for $1000.
>
>Three things work against you in this case:  
>1) Why would State Farm pay for the damage when there is another company responsible
>   for the costs.
>2) Having State Farm pay for the damage will bump your insurance premium by at
>   least 10% for the next three years.
>3) Usually an insurance company will not "cut a check" for damages until they
>   are repaired.  They may give you 2/3 of the claim if you can demonstrate that
>   the car was sold or scrapped, however.
>
>Apparently you have not had to deal with the concepts behind damage losses before.
>The sad truth is that you can never really recover the out-of-pocket or perceived
>losses following an accident, even if it isn't your fault.  The value of your
>car to you is usually always lower than it will cost you to replace it. 
>
>If you really want to come out near even, bargain with the AAA that you will 
>accept another car of the same age, condition and mileage as the one you lost. 
>This may be hard for them to find, but I have seen this work for others in the past.
>The simple argument is:  "If my car is only worth $3000, then you should be able
>to go buy one for me for that price."  Aside from that, I think you are probably
>going to end up with $3000.
>
>Good Luck.

I have a friend who does appraisals - she said to find a good car appraiser
to go over your car and check it out (some will give you an estimate before
they start writing the appraisal up) - written properly, a good appraisal
could get you the full value of the car (have you checked the blue book
value yet? also, Hemmings has cars, years, etc and their relative value
points - have you checked them out?)

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