Getting screwed by State Farm

[Nate Dogg]

I'm thinking now of joining my girlfriends American Family insurance after this recent incident by State Farm.

It happened as I hit a curb fairly hard after going through a large puddle. The water pulled my wheel and drifted into the curb. I ended up bending my A-Frame of my right passenger tire. None of my fenders, hood, or doors got bent. The car was still driveable as the tire was rubbing into the wheel well. I drove the car to another curb and parked it. I got it towed as I made the claim. I had a feeling that my tie-rods were at least bent and A-frame.

State Farm, sent out an adjuster and the adjuster has stated that there is an estimate of $3152.85 worth of damage. The fair market value of the car is $3412 according to a market value business or system that they use. This is a 1998 Pontiac Grand Prix GTP (supercharged).

I called State Farm claims department again today and they said my car is already considered a loss. They have written this car off as a loss already!

I think my car insurance is just stating this so I would get a newer car with them, with higher car insurance, etc. I'm really pissed.

My car insurance agent never followed up with the status of the car, when the adjuster came out, or being notified of my car being in the "total loss department" today.

I have a feeling State Farm has failed me.

I'm going to the body shop tomorrow to see what the body shop is estimating and what the state farm adjuster has quoted. I am also taking pictures of my car.

Then State Farm is even trying to deduct my collision coverage amount on the market value of the vehicle, when it isn't even being repaired! So State Farm is giving me a check for what the value of the vehicle minus the deductable. What the fuck!

Or, I can take the car back minus $595 with a damaged title. There are ways of reclaiming the vehicle as useable with DMV but it would have to be inspected. I would have to have it repaired out of pocket with the check State Farm would send me plus additional income.

 

[jlprk]

State Farm did me wrong twice, 20 years apart, and now, they send me ads trying to get me back. Nope.

And before that, in 1971 my mother had to sue them to get paid when she lost all her teeth and broke arms and ribs.

 

[BLAZINGGIANTS]

I love my State Farm agent. Been in accidents and they've always made sure I was more than taken care of, even when my own stupidity caused the accident, or some hit my parked car (twice).

 

[BoBoBREWSKI]

Get the parts from a wrecking yard and fix it yourself. Save a ton of $$$.

 

[Sedatedfork]

Are you saying they are undervaluing the car? Because unless that's the issue, it sounds like they did everything right and probably the same way every other company would handle your situation. If you contest the value, you could always challenge the appraisal.

 

[DaLincolnJones]

Here is a little info you might find usefull

The insurance company is offering you wholsesale blue book, retail is 5600, so stick to your guns. The average person can not purchase at wholesale values to replace a vehicle, hell, dealers are not able to purchase nice vehicles at those numbers most of the time, so it is unreasonable that you should be able to.

As far as fixing the vehicle your self, well, after a vehicle has been salvaged the title is branded to reflect that fact. The value is about half of what it once was. Most lenders will NOT loan on a branded title, and once a vehicle has had a settelment to salvage, they will never pay out on the vehicle again. So what this means is that you would only be able to insure it for liability.

Last item, as a rule of thumb you should shop your insurance every two years to keep your rates honest. You have a claim now and they are going to bump your rate up to get money back.

Good luck.

 

[BlazerCaravan]

Like a good neighbor, State Farm fucks your wife while you're at work.

 

[BLAZER PROPHET]

As a claims adjuster (used to do cars, but now dental malpractice), maybe I can shed some light.

Insurance companies are loathe to consider used suspension parts. And for good reason. They are a safety item. New parts are expensive. Generally, the threshold for totaling a vehicle is around 75% of value. There are two reasons for this. First, there are usually supplements from body shops as they uncover or make more damage to your vehicle (as one well commercialed shop does that I won't mention by name). Second, it's a business decision. The insurance carrier gets salvage value for the vehicle. For example, since your car doesn't have front end sheet metal damage, the salvage value is going to be a solid 25% of value. It makes more economic sense for them to total it. You may rightly argue that isn't fair, but I'm just explaining it.

As to your deductible, why wouldn't they take it? They have to on every loss. Don't be a baby about it.

As to vehicle evaluation for totals, carriers use some service that has a data base of vehicles similar to yours (make/model/year). They take the "asking" price and take a % of that (because there is always a "asking" and a "taking" price). They average out the values and then tweak it for mileage, trim line, aftermarket add ons... Is it usually a fair price? Probably not. Sometimes it is and sometimes it's not. As an example, I just looked at some on line data and based on actual vehicles for sale (6) the average asking price is $4,292. If we assume people take 10% less than the full price, a reasonable value (without making adjustments) is $3,865. Therefore, the $3,412 they are offering you seems low. Plus, most the comps I found aren't supercharged (that doesn't add much value), so maybe a reasonable value might be $4,100 to $4,300.

As a side note, I have State Farm and made 3 claims in the last 5 years and got good service and hassle free repairs each time.

If you have any other questions, let me know.

 

[BLAZINGGIANTS]

As a claims adjuster (used to do cars, but now dental malpractice), maybe I can shed some light.

Insurance companies are loathe to consider used suspension parts. And for good reason. They are a safety item. New parts are expensive. Generally, the threshold for totaling a vehicle is around 75% of value. There are two reasons for this. First, there are usually supplements from body shops as they uncover or make more damage to your vehicle (as one well commercialed shop does that I won't mention by name). Second, it's a business decision. The insurance carrier gets salvage value for the vehicle. For example, since your car doesn't have front end sheet metal damage, the salvage value is going to be a solid 25% of value. It makes more economic sense for them to total it. You may rightly argue that isn't fair, but I'm just explaining it.

As to your deductible, why wouldn't they take it? They have to on every loss. Don't be a baby about it.

As to vehicle evaluation for totals, carriers use some service that has a data base of vehicles similar to yours (make/model/year). They take the "asking" price and take a % of that (because there is always a "asking" and a "taking" price). They average out the values and then tweak it for mileage, trim line, aftermarket add ons... Is it usually a fair price? Probably not. Sometimes it is and sometimes it's not. As an example, I just looked at some on line data and based on actual vehicles for sale (6) the average asking price is $4,292. If we assume people take 10% less than the full price, a reasonable value (without making adjustments) is $3,865. Therefore, the $3,412 they are offering you seems low. Plus, most the comps I found aren't supercharged (that doesn't add much value), so maybe a reasonable value might be $4,100 to $4,300.

As a side note, I have State Farm and made 3 claims in the last 5 years and got good service and hassle free repairs each time.

If you have any other questions, let me know.

Fuck you BP for dropping real knowledge. We don't need that weak shit here!!

 

[BLAZER PROPHET]

Fuck you BP for dropping real knowledge. We don't need that weak shit here!!

A fan!

 

[bigbailes]

all insurance is a scam. they want your money every month but fight you tooth and nail anytime you want to make a claim.

 

[BLAZER PROPHET]

all insurance is a scam. they want your money every month but fight you tooth and nail anytime you want to make a claim.

That line can make for one loooooooooooooooong and interesting thread. Here's the Readers Digest version:

It used to be (1920's to 1960's) insurance companies rode roughshod over people (if they wanted to). Then each state adopted "bad faith" laws. Some were reasonable and some (like Washington) are designed to punish insurance companies at will. But increased litigation (in general), crooked shops and contractors, fraud and rouge bad faith laws have completely turned the tables against insurance carriers. During this time nearly every carrier went bankrupt and became a stock company or owned by a larger conglomerate. Now, the pressure of investors combined with the other things mentioned above and what I believe to be poor management, have made carriers seek profits where they can. This pressure leads to various means to pay as little as possible. I am safe to say that rates would be over 60% lower if the playing field was level. But it is what it is and the combination of greed by people (insureds, claimants, attorneys, auto shops, contractors, swindlers...) and the pressure to show profits for carriers has created one hell of a mess. In the vast majority of states there is no answer. I mean, insurance is a necessity but it has become one giant cluster****.

 

[jlprk]

Readers Digest certainly has changed its writing style.

 

[bigbailes]

i agree that the blame isn't laid totally at the feet of the insurance companies, as there is a lot of fraud and an overly litigious society at play as well. saying that, i think your final sentence sums up the feelings i have on insurance perfectly.

 

[PapaG]

Readers Digest certainly has changed its writing style.

Very few people here even know what Readers' Digest is these days, grampy.

Drink more Ovaltine.

 

[MickZagger]

That line can make for one loooooooooooooooong and interesting thread. Here's the Readers Digest version:

It used to be (1920's to 1960's) insurance companies rode roughshod over people (if they wanted to). Then each state adopted "bad faith" laws. Some were reasonable and some (like Washington) are designed to punish insurance companies at will. But increased litigation (in general), crooked shops and contractors, fraud and rouge bad faith laws have completely turned the tables against insurance carriers. During this time nearly every carrier went bankrupt and became a stock company or owned by a larger conglomerate. Now, the pressure of investors combined with the other things mentioned above and what I believe to be poor management, have made carriers seek profits where they can. This pressure leads to various means to pay as little as possible. I am safe to say that rates would be over 60% lower if the playing field was level. But it is what it is and the combination of greed by people (insureds, claimants, attorneys, auto shops, contractors, swindlers...) and the pressure to show profits for carriers has created one hell of a mess. In the vast majority of states there is no answer. I mean, insurance is a necessity but it has become one giant cluster****.

Ahhhh, you know its bullshit, you just make a living that way so you want to make it seem acceptable. Its shady, gypsy shit.

 

[jlprk]

Very few people here even know what Readers' Digest is these days, grampy.

Drink more Ovaltine.

I was reading condensed books when you were on condensed milk. Speaking of dense, please write more on your twosome with Tardo.

 

[BlazerCaravan]

That line can make for one loooooooooooooooong and interesting thread. Here's the Readers Digest version:

It used to be (1920's to 1960's) insurance companies rode roughshod over people (if they wanted to). Then each state adopted "bad faith" laws. Some were reasonable and some (like Washington) are designed to punish insurance companies at will. But increased litigation (in general), crooked shops and contractors, fraud and rouge bad faith laws have completely turned the tables against insurance carriers. During this time nearly every carrier went bankrupt and became a stock company or owned by a larger conglomerate. Now, the pressure of investors combined with the other things mentioned above and what I believe to be poor management, have made carriers seek profits where they can. This pressure leads to various means to pay as little as possible. I am safe to say that rates would be over 60% lower if the playing field was level. But it is what it is and the combination of greed by people (insureds, claimants, attorneys, auto shops, contractors, swindlers...) and the pressure to show profits for carriers has created one hell of a mess. In the vast majority of states there is no answer. I mean, insurance is a necessity but it has become one giant cluster****.

Oh goodness, if we just got rid of regulations, no major genre of business would ever run roughshod against the consumers again!

 

[BLAZER PROPHET]

Ahhhh, you know its bullshit, you just make a living that way so you want to make it seem acceptable. Its shady, gypsy shit.

I may work for the insurance industry, but I have left two companies because I felt they were not keeping insureds/claimants best interests in mind (or reasonably so). I'm sort of an anti insurance insurance person.

But I will say this...

Buying a house? Yes? Did you have sufficient collateral (as in decades gone by) to cover the full cost? No? Then how did you purchase the house? One reason only- an insurance company, for about $50 per month, is underwriting a potential $150,000 (or whatever the value is) on your behalf. Same thing with a car. No collateral, no loan unless an insurance company is backing you.

Also, want to guess how many people are alive today without insurance? Or have such serious health issues they wish they were dead? Think a doctor would deliver a baby these days litigious days without insurance to back them up? Or any other difficult undertaking? Would you even drive a car without insurance to protect your assets in the event you blew a stop sign and hurt someone? The billions of insurance dollars that go towards improving heath care and research and the fact they underwrite your heath. And how many times have I gone to an insured who has lost a house or business to a flood or fire and put them back together again? Hundreds of times.

I mean, don't cry any tears of sympathy for an insurance carrier, but they play a role far greater that anyone really imagines. Sometimes insurance companies get it wrong, or just flat out do it wrong for the sake of profits, I get that. But the good far outweighs the bad.

 

[BLAZER PROPHET]

By the way, Nate, let us know how it all turns out.