Auto insurance help needed

[Frank R.]

My father was recently in an accident (his fault) and his truck is destroyed – no doubt it will be a total loss. I am helping him navigate the insurance process and have a few questions.

• The truck is a 2005 Super Duty, with only 31k miles. It was in excellent condition – I doubt there is a better example to be found. I booked it out through NADA and KBB and the value is showing in the $12k-$15k range. Obviously, this truck would have sold for much more in the current market (I only found 2 examples of ’04-’06 F250s with under 45k and both were listed in the mid $20k range). What can he expect to be offered from the insurance company, and is this something that is/can be negotiated? If so, any tips on the negotiation process?
• At the time of the accident, the truck had an older slide-in truck camper on it, which was also destroyed. He did not have any type of insurance on the camper itself (truck campers are not titled or registered in my state). Is this something that would be covered under this truck insurance? The State Farm employee who took the initial claim did not know, and advised me to speak with the total loss team about it when the time comes.

Any input on this will be greatly appreciated. Thank you.

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[MtCamper]

Let the insurance company do their job. They will come up with a value. If it's in your ball park, accept. If you must, go ahead and research comps. Go nationwide. Especially at dealers. See what their asking price is and print it out. Save it as ammo if needed. You won't get the insurance to agree to the highest price you find, but you should expect them to offer somewhere in the top 10. Do the same with the camper, it should be covered under most policies. Don't be afraid to ask the adjuster how they arrived a their value. Expect your Dad to need to find a new insurance company. He may not be cancelled but his premium will likely take a boost.

 

[ECP]

My father was recently in an accident (his fault) and his truck is destroyed – no doubt it will be a total loss. I am helping him navigate the insurance process and have a few questions.

• The truck is a 2005 Super Duty, with only 31k miles. It was in excellent condition – I doubt there is a better example to be found. I booked it out through NADA and KBB and the value is showing in the $12k-$15k range. Obviously, this truck would have sold for much more in the current market (I only found 2 examples of ’04-’06 F250s with under 45k and both were listed in the mid $20k range). What can he expect to be offered from the insurance company, and is this something that is/can be negotiated? If so, any tips on the negotiation process?
• At the time of the accident, the truck had an older slide-in truck camper on it, which was also destroyed. He did not have any type of insurance on the camper itself (truck campers are not titled or registered in my state). Is this something that would be covered under this truck insurance? The State Farm employee who took the initial claim did not know, and advised me to speak with the total loss team about it when the time comes.

Any input on this will be greatly appreciated. Thank you.

Yes, you can always negotiate. They should consider the camper, but it probably won't be much - $100 used or so. Each state is a bit different on what kind of $ he'll get, but what they do in NC is go by "ACV" or "Actual Cash Value". They determine the price based on similar vehicles for sale. Insure that they are comparing like and like. As an example, I had a 4wd v8 and they were trying to compare 2wd V6- big price difference.

Sorry to hear, been there and it sucks.

 

[AcesandEights]

First, need to know what NEPA is, your location.

 

[Frank R.]

First, need to know what NEPA is, your location.

Northeast Pennsylvania

 

[AcesandEights]

Insurance is state-specific, so any info you get online that is posted from someone that hasn't handled claims in NE Pennsylvania should be taken with a grain of salt. I was a claims adjuster in Oregon so my info is based on how things are/were handled in Oregon.

The value of the vehicle is the “actual cash value”. Actual cash value is determined not by KBB or NADA, but by what the market is if you have cash and want to purchase a vehicle. So, if a 2005 F250/F350 is for sale, what will the owner take if you have cash in hand. It is not the “list” or “sticker” price, but what is the actual amount you would have to pay for a like vehicle if you walked up with hundred dollar bills/check.

Since not all vehicles can even be found, like your dad’s, there can be adjustments made for things like condition, mileage, etc. They make some difference, but not as much as you might think. A 2005 truck with 31k miles isn’t worth the same amount as a 2015 with 31k miles, so the low miles on your dad’s truck isn’t going to add a huge amount of value. It’s still a 26 year old truck, even with low miles. Basically what you have to think about is if your dad’s truck is sitting next to the exact same truck that has 50k or 100k miles, how much more is someone with cash in hand going to pay for the lower miles, maybe something, maybe nothing.

The amount the insurance company offers on the total loss has to be tied to something, tangible, some documented methodology for calculating the value. Where they are basing their value on something, so should you. If you can find comparable vehicles (as close as possible) that will support a value (more or less than you expect) that will make it possible to negotiate; however, they have to be truly comparable. If you find vehicles that are five years newer with a diesel engine and four-wheel drive and your dad’s truck is a two-wheel drive with the smallest gas engine, well, that’s not comparable.

The camper would have to have a separate policy, or a “rider” on the truck policy that covers a slide-in camper.

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