Insurance and Accident Do and Dont's

[Frank]

Insurance and Accident Do and Dont's
Advice from ScottD

How many times have you read a thread where someone has had their Turbo Mopar hit by a careless driver and then are at the mercy of the insurance company after they offer them 2 cents for their beloved Turbo Mopar? You never know when an accident might happen. So be prepared! Some preparation on the front end may lead to saving you some headaches down the road.

Things to do BEFORE you have an accident:

1. Have your vehicle appraised by a professional appraiser. Using an appraiser who is I-CAR or ASE certified is beneficial. You want an appraiser that has some kind of reputation and good standing, and can testify in court on your behalf if necessary. You want the appraisal to reflect a true fair market value for the vehicle. An appraisal that simply increases the value of the car without basis for doing so will not hold up in a court of law. A good appraiser will do some market research and have some supporting sales to document and support the appraised value he/she assigns to the vehicle.
2. Obtain agreed value insurance for your vehicle. This is still easier said than done at this point since the majority of our cars are still well under 25 years old. Most large insurers like Hagerty and Grundy require that the vehicle be this old for classic car insurance. There are some insurers out there who will provide classic insurance for the numbered Whittier built Shelby Dodges. It may vary from state to state. If you have another vehicle you drive daily, have a garage to keep it in, and your Turbo Dodge is eligible for classic insurance with agreed value I recommend getting it. Yes there are some additional usage restrictions with classic insurance, but it is cheaper than regular insurance, and if you have an accident, the agreed value will be tougher to challenge. Yes, it can be challenged (this is where having a reasonable appraisal comes into play), but will be more difficult for the insurance company to do.
3. Document your vehicle. This includes recording the maintenance and upgrades performed on the vehicle. Document the production numbers on the vehicle to attest to its rarity. Examples like the GLHS are fairly easy to document what they are because so many web sites have information on these cars. Something unique, like an 89 Daytona C/S AGS competition package, are tougher to document. I had an 89 C/S AGS hit in 2002 and I had to document what it was to the insurance company. I had a magazine article from 1989, the option and accessory report from Chrysler showing it was one of 269 built, all my receipts as well as other documentation. These things are important, take the time and gather this information now rather than later because you might not be able to find it then, and really that’s the last thing you want to be doing after an accident because trust me, I’ve been there!

Things to do AFTER you have an accident.

1. Do your negotiations in writing. Create a paper trail. I don’t like to be sucked into over the phone negotiations with an insurance company. Why? For the simple fact that a phone conversation creates plausible deniability. It is way too easy for the insurance company to deny what they’ve said to you over the phone. I prefer to communicate in writing and via certified mail. In the event you go to court, this leaves a documented paper trail and you have confirmation that the insurance company has received your communication to them, a fact they can’t deny. It also shows you are serious about pursuing this issue.
2. Document your vehicle and your claim. This is where your documentation gathered before the accident comes into play. Provide the production history on the vehicle, receipts for the work you’ve put into it, a copy of the professional appraisal, a copy of the agreed value policy you have on the vehicle, anything you can to substantiate the value of the vehicle.
3. Be patient and don’t cave in to bully tactics. Remember that their first offer is going to be their worst offer. These companies prey on people needing money and needing to get their car back on the road. If you are into Turbo Mopars, hopefully like many of us you have more than one and aren’t reliant on the car for daily transportation. Insurance adjusters are under the gun to settle quickly, they want these claims off the books. In speaking with several Turbo Mopar owners who have been through this it seems that the insurance companies won’t budge on their offer for several months. I’ve heard from 4-6 months waiting before the insurance company will budge on their offer. It also depends which insurance company you’re dealing with. I’ve had four losses (none my fault) and the experiences I’ve had vary by company. Three out of the four instances were total loss cases, in two cases the company was eager to settle, in the third case the company seemed to care less. In my book they’re all difficult to deal with, but some are better than others.
4. Be professional. Don’t make outrageous threats or demands. And keep your temper. I know this can be difficult to do, but you’ll get better results if your firm and not just a raving angry lunatic.
5. If they’re trying to total the car and you’re going to fix the car, make that known. It seems like these days they’ll total our cars for a door ding. Perfectly fixable and in many cases still driveable cars are being totaled. Don’t settle for a salvage title. And try to negotiate out of the salvage value being deducted. Insist that the settlement money you are being provided will be to fix the car and that you are fixing the car.
6. If the car can be fixed, do your research on who you want to fix it. Don’t take it to the closest place or cheapest place. Take it somewhere that you know does good work, that others have used and can attest to the quality of the work.
7. Know where to file a complaint. Insurance companies are regulated by state. Each state should have an Insurance Administration who has oversight. Don’t hesitate to use them. The state of Maryland has an on-line complaint filing system.