Fair Value
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| How to Determine If Your Insurance Company is Paying You a Fair Value for Your Totaled Automobile? |
Getting your insurance company to pay a fair value for your totaled automobile is challenging. The value you
receive may be limited by the contract limits of your insurance policy. Such limits are part of the insurance
contract and restrict benefits to those that you purchased. Many people have their vehicle insured for the full
replacement cost of the vehicle; however, insurance adjusters are motivated to reduce the “full” replacement
cost.
Adjusters often try to persuade their clients into accepting less than they are entitled. Adjusters will use tactics
such as discounting the value of certain options and then threatening to take the entire matter to arbitration
when the client disagrees with the valuation. Most insurance contracts do contain an arbitration clause that
mandates binding arbitration when there are disagreements as to value. Some adjusters try to scare their clients
into accepting the lower valuation by stating that if the disagreement goes to arbitration, the client will have to
pay more in arbitration costs, expert appraiser fees, and attorney costs than the difference in the disputed
value.
You can increase the valuation amount by using Internet resources to serve as the basis for your value
arguments. Kelly Blue Book and the National Automobile Dealers Association (NADA) websites are easy to
use and will allow you to select the model, make, year, and options to generate a fair value.
Insurance adjusters often feel that the Kelly Blue Book values are too high and aimed at the consumer market
(classified ads) rather than the car dealer’s market. Adjusters generally believe the NADA values are more
accurate since it is more likely that a replacement vehicle with identical options would be found at a car
dealership rather than through the classified ads. However, insurance adjusters don’t account for dealer mark-
ups that get tacked on to the trade in-values taken from NADA. You can also search the Internet for a car
dealer ad for a similar car and use the ad prices as an additional basis for your increased value argument. You
also should insist that sales tax is added to the final valuation amount since this is a cost that you will have to
bear when you purchase a replacement vehicle.
Sometimes these valuation strategies are not enough and an attorney should intervene in order to cut or reverse
the intimidation games that some insurance adjusters play.
receive may be limited by the contract limits of your insurance policy. Such limits are part of the insurance
contract and restrict benefits to those that you purchased. Many people have their vehicle insured for the full
replacement cost of the vehicle; however, insurance adjusters are motivated to reduce the “full” replacement
cost.
Adjusters often try to persuade their clients into accepting less than they are entitled. Adjusters will use tactics
such as discounting the value of certain options and then threatening to take the entire matter to arbitration
when the client disagrees with the valuation. Most insurance contracts do contain an arbitration clause that
mandates binding arbitration when there are disagreements as to value. Some adjusters try to scare their clients
into accepting the lower valuation by stating that if the disagreement goes to arbitration, the client will have to
pay more in arbitration costs, expert appraiser fees, and attorney costs than the difference in the disputed
value.
You can increase the valuation amount by using Internet resources to serve as the basis for your value
arguments. Kelly Blue Book and the National Automobile Dealers Association (NADA) websites are easy to
use and will allow you to select the model, make, year, and options to generate a fair value.
Insurance adjusters often feel that the Kelly Blue Book values are too high and aimed at the consumer market
(classified ads) rather than the car dealer’s market. Adjusters generally believe the NADA values are more
accurate since it is more likely that a replacement vehicle with identical options would be found at a car
dealership rather than through the classified ads. However, insurance adjusters don’t account for dealer mark-
ups that get tacked on to the trade in-values taken from NADA. You can also search the Internet for a car
dealer ad for a similar car and use the ad prices as an additional basis for your increased value argument. You
also should insist that sales tax is added to the final valuation amount since this is a cost that you will have to
bear when you purchase a replacement vehicle.
Sometimes these valuation strategies are not enough and an attorney should intervene in order to cut or reverse
the intimidation games that some insurance adjusters play.
Kline Legal Group, P.L.C. represents clients throughout Michigan including Washtenaw County, Eaton County, Genesee
County, Ingham County, Jackson County, Lenawee County, Livingston County, Macomb County, Monroe County, Oakland
County, and Wayne County, as well as the cities of Ann Arbor, Adrian, Auburn Hills, Belleville, Birmingham, Brighton,
Burton, Canton, Chelsea, Dearborn Heights, Dexter, East Lansing, Eastpointe, Ferndale, Flint, Howell, Jackson, Lansing,
Livonia, Madison Heights, Milan, Milford, Novi, Oak Park, Plymouth, Pontiac, Redford, Rochester Hills, Romulus, Roseville,
Saline, Southfield, Sterling Heights, Taylor, Tecumseh, Troy, Warren, Waterford, West Bloomfield, Wyandotte, and Ypsilanti.
County, Ingham County, Jackson County, Lenawee County, Livingston County, Macomb County, Monroe County, Oakland
County, and Wayne County, as well as the cities of Ann Arbor, Adrian, Auburn Hills, Belleville, Birmingham, Brighton,
Burton, Canton, Chelsea, Dearborn Heights, Dexter, East Lansing, Eastpointe, Ferndale, Flint, Howell, Jackson, Lansing,
Livonia, Madison Heights, Milan, Milford, Novi, Oak Park, Plymouth, Pontiac, Redford, Rochester Hills, Romulus, Roseville,
Saline, Southfield, Sterling Heights, Taylor, Tecumseh, Troy, Warren, Waterford, West Bloomfield, Wyandotte, and Ypsilanti.
| The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Copyright © 2009 by Kline Legal Group, P.L.C. Ann Arbor, Michigan (734) 302-7274. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. |
| Kline Legal Group 278 Collingwood St. Ann Arbor, MI 48103 www.klinelegalgroup.com ------------------------------- Phone: (734) 302-7274 Fax: (734) 302-7222 |
| Minitorts For Small Uninsured Damages |
An individual who is insured is barred from suing the person that hit them causing property damage to their
vehicle, except to the limit of up to $500 for an uninsured loss such as an insurance deductible. An individual
can bring a suit for up to $500 under the minitort provisions of the No-Fault Act, MCLA 500.3135(3)(d), as
long as he or she is not more than 50% at-fault for the accident. Such a suit can be brought by an individual
using the District Court's Small Claims Division using the forms available on the District Court's website.
Before filing the forms with the Small Claims Division, you should ask your own insurance agent to negotiate a
settlement for the deductible amount with the insurance company of the at-fault driver.
vehicle, except to the limit of up to $500 for an uninsured loss such as an insurance deductible. An individual
can bring a suit for up to $500 under the minitort provisions of the No-Fault Act, MCLA 500.3135(3)(d), as
long as he or she is not more than 50% at-fault for the accident. Such a suit can be brought by an individual
using the District Court's Small Claims Division using the forms available on the District Court's website.
Before filing the forms with the Small Claims Division, you should ask your own insurance agent to negotiate a
settlement for the deductible amount with the insurance company of the at-fault driver.
| Michigan Auto Accident |