What the heck is insurance for?

I had a situation where insurance wanted to total it out and here is my advice: they want to close this claim quickly, you must have more patience than them and be highly insistent upon getting what you are asking for, and don't be afraid to keep kicking it up to a higher manager. Also use your local agent if you have one.

I'd call an attorney. or at least threaten to at first. I wouldn't accept anything other than the same working bike he had before the accident and hospital costs...assuming those are covered. but call a lawyer! they are trying to get out easy, make him think it's the end of the road. it's just the start of the negotiating.

I'm afraid that's the way it works. You're only insured for what it is worth, and a vehicle is often worth less than is owed on it. I've heard of several people who crashed cars and ended up not getting enough to pay them off.

Sounds like he didn't have GAP insurance?

This is what GAP Insurance is for. As most folks know the second you drive a new car off the lot, it immediately drops in value. If you were to get into an accident right after you drove off the lot GAP insurance covers the difference between the payoff on the loan and the Blue Book that the main insurance will pay if totaled.

Policies have to follow the rules for your state.

The type of policy and it's coverage types have a lot to do with what it will cover.

If you still have a loan and your insurance pays to the bank, then it should pay all that is owed in a check to you and the bank.

They start totaling a vehicle at around 80% of value for fixing it.

Company tried to total my F150 4wd and I said to pay the max amount to fix it and I would cover the remaining amount. They agreed and it cost me $700 out of pocket.

I had no medical coverage for myself, so I did not go to the doctor. If anyone else were in the vehicle, they would have been covered.

Don't sign or agree to anything until you are satisfied ..... talk to their boss.

Since I've been with Farmers they have taken all the hassle out of that end of things.

0.02

I'm not an attorney...but was the company handling the financing of his motorcycle purchase satisfied with his insurance coverage limits?

It may be too late, but maybe it's time to file a claim for the neck and back pain he's been suffering since the accident...;-) Oops, just read he probably skipped out on medpay ins...

In lieu of GAP if a bank provides a loan for something, would they not require an indemnity clause in the insurance coverage? At minimum somebody involved should have informed the kid that he is not covered adequately.

I had the kid covered with USAA before he left home and I know he had adequate insurance at that time. Somewhere along the way he ended up with State Farm.

Sounds like the kid got a $1,500 lesson on why it's a good idea to remain covered by USAA. Chances are, State Farm will settle up fairly ... eventually. He's lucky he didn't have Allstate.

They are insuring the bike. They should be liable for repair or replacement of the bike, nothing more. What you owe on a loan is of no interest to them. Why would it be unless he had special GAP insurance?

Kelly Blue Book alone is not enough to base an insurance settlement on.
They should find 3 used bikes located within 100 miles that are in similar condition and have similar mileage and average the asking price then either offer that as a settlement or facilitate the purchase of the replacement bike.

He would end up exactly where he was in the first place...upside down on a used bike....get it?

In 1995 I bought a used 1990 Ford Tempo from a dealer for $5000. A few months later someone pulled out in front of my wife and totaled it. The insurance company valued it at $3800. The adjuster said if I could find proof that it was worth more, he would increase the offer.

I shopped around and found another Tempo, same age, not as good shape, more miles, on a lot for $5500. I told the salesman that if he would give me a letter stating that the car was worth $5500 I would buy it. He wouldn't do it. He said $3800 was about it. I offered to buy his car for $3800. No deal.

I spent 2 months negotiating an insurance settlement once. It was on a newer car that was upside down because of high mileage and low monthly payments.

It surprised me how much of a haggling game it was. They started out extremely low.

I responded by telling them I needed a rental car until they paid the settlement, which I got (very nice Lincoln Navigator).

We go back and forth playing phone tag. I went out and found 3 SUV's in similar condition and averaged the costs (including delivery). That was the price I demanded.

I told them Kelly Blue Book did not accurately reflect the market conditions in my area unless I could actually find vehicles for sale in my area for similar prices.

They stood their ground, then offered to meet me half way. I told them to go out and buy me a replacement with their offer.

I didn't hear from them for 3 or 4 weeks. Then I got a call telling me that they couldn't continue paying for the rental. We settled for my asking amount during that phone call. They didn't come out on top with that tactic. This was AAA.

Sounds like he didn't have GAP insurance?

gap insurance.....put enough money down so that the car is worth as much or more than what you will owe on it. Don't start out upside-down.

Insurance is a way for insurance companies to make money, for them to do that they need to pay out as little as possible...

SHG

My car was totaled by a horse. The horse had liability insurance.

They made an offer. I looked around for a replacement, same year, make and model, similar miles and asked for that much (somewhat more) and they agreed it was worth that much and paid me plus had the car towed to their auction yard.

So pretty much what you said.

I hope your son is okay? Motorcycle accidents can Cause long lingering injuries

>
> I told them to go out and buy me a replacement with their offer.

:good:

And remember to 'spilt' the settlement. Auto repair/replacement and medical.

DDSM

Odd how this came up today. Just this morning I was talking with my coworker about auto insurance and this very topic. He had a situation come up about 10 years ago where his high school-aged son had got a terrific deal on an old pickup. I think it was only $500 or so. The first day of school the pickup was hit in the school parking lot by a fellow student. The repair estimate was around $1500. The Blue Book value was around $1200. The insurance company finally agreed to pay $1200 of the repair, the deductible was $250 anyway, so it only cost them $50 to actually improve the value of the pickup significantly above what he had paid for it because it was much more marketable after the accident repairs were made.

He is pretty tough. A few broken ribs and collar bone, all healed up now.

It has been nearly six months and the insurance company is still dragging it out.

At 54 years of age, I wish I had all the money I spent on insurance, health, house car, business, etc. etc.