From: mark@wdcwdc.sps.mot.com (Mark Shaw)
Subject: Re: How to fight AAA?
Organization: Motorola Western MCU Design Center, Chandler Arizona
Date: Fri, 18 Dec 1992 00:31:44 GMT

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.
Newsgroups: rec.autos