DE insurance

[cjbcpa]

Final Chapter, the settlement

All in all, I was pretty happy with the ACV.  That kind of money would buy a pretty nice example of a stock 951 or even a dedicated track version that was hopefully well cared for. However, more goes into settling the claim than simply the ACV.  First, the deductible of $1,500 comes off the top and then the issue of buying the salvage vehicle needs to be considered.

Those that know me well know I am a cheapskate. I have kept the receipt for every single service done to the car. So I knew all to well how much money I had tied up in my 951. In fact, as of MAW, between major service, maintenance and upgrades, I had paid for the car nearly twice over (note to self, stop keeping these records.) As I tallied up the value of just the easy to remove bits, buying the car back was a no-brainer.  This decision was also easy because I have a lift and enough space to tear down the car.

The appraiser had secured salvage estimates from three local yards that offered from $500 to $750 for the car. The adjuster had also gone on line and found salvage yards offering 944’s at $1,033 and up. Accordingly, their salvage price to buy the car back was $1,033.

So far their offer stacks up as $13,500 ACV, less $1,500 deducible, less $1,033 to buy the salvage car back or $10,967. We’re not done yet though. For reasons that an insurance expert will have to explain, their ACV of $13,500 was grossed up by 6% or $810 for sales tax. I’m not certain if this is a regulatory requirement or their practice but it never would have occurred to me to question if it wasn’t on the proposed settlement.  I assume the rationale is any purchase of a replacement would require ponying up sales tax as well so this is added on top?  Including this pleaseant adjustment, my total is now $11,777.

I definitely wanted to buy the car back. I know there is potential at least a few thousand dollars of parts in it if I was willing to put in the effort, but I felt their value of $1,033 was really a reaction to the high ACV given by the appraiser. So, wanting to counter-offer a lower number, but also trying to keep the  number within the adjustors approval range, I offered to buy the car back at $810, lower than $1,033, a little higher than the local numbers, and crafted to result in a nice even $12,000 payout.

I made my proposal to the adjustor by phone. He thought it would fly without too much of an issue, just needed to check with his manager. So, after a suitable wait, he e-mailed me revised paper work reflecting all of the above, or an even $12,000. I now must send in the completed, notarized claim forms along with a copy of the title and a copy of the incident report. 

All in all, the claim was handled pretty efficiently and without major hiccups. Of course, I wish that I never had to go through all this. But on the bright side, I come out of this with enough cash to get back into a car in at least as good a condition as mine was. Just waiting for the check now.