M5 Totaled, Update, Insurance Lessons Learned.
02-18-2005, 12:54 AM
#1
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M5 Totaled, Update, Insurance Lessons Learned.
Hi Folks,
Thanks for all your kind wishes in the other thread. I finally settled with the insurance companies, and would like to share my first-hand experience. I realize that not all insurance companies operate this way, so please take this as just one person's experience, nothing more.
Health: Still suffering from tense muscles from the shoulder to neck to tample areas. Acupuncture and acu-pressure treatments help some. I'm sore in my sternum, base of neck, and right chest area. It's been 24 days, it may take up to three months before all the sore spots show up.
Property Damage:
Since the other party's coverage limit is only $25k, I have to work with my own insurance to get the totaled value of my M5 covered. Here's what happened. They hire an independent appraisal company (ADP) and surveyed all comparable local M5 sales in the last 6 months. That sets the average value. ADP then looked at my specific car and gave me credits for pristine mechanical and physical conditions. I then sent them all the documentation of my 'enhancements' (SSK, coil-over, Power chip, IATS etc.), and ADP made a judgement call on how that would add value to the car. At the end, they exceeded my expectations by about $725. I'm really happy with the results. They add sales tax on that as well.
My insurance will subrogate the other side to get the $25k back. I will get refunds on the vehicle registration fee and insurance premium. The other side will reimburse my $1k deductible (good will gesture), plus a minimum amount for loss of use. If I had rented a car, they'll cover the rental. Since I didn't rent, the loss of use is an in-pocket amount to me. It's really minimal, and covers the period from the date of accident to when the insurance settlement amount was first proposed. The loss of use is part of the $25k limit, the $1k deductible reimbursement is not.
Buy Back:
I have first dib to buy back the car. They contacted a few salvage yards to establish value. It came to $11,750. However, as the engine breached the fire-wall, and the transmission has dislodged and sunk, I'm not sure those parts can be easily and cheaply salvaged. I passed on the chance for a buy-back.
Bodily Injury:
They have an insured limit on that as well, and that will cover my time off from work, actual medical bills, and a 'pain and inconvenience' amount. At the end of the day, I will have to sign a final waiver to conclude this part of the settlement. This may be a long time coming. If the pain lingers, I have up to two years to settle. If their coverage limit is too low, I'll have to go after the lady in court (civil or small claims). I hope it won't come to that, as I have no intention to get rich over such an unfortunate event, for all involved. I'll post update on this in the future.
So all in all, the total financial settlement as a result of the accident seems ample to replace my M5. I'm taking the opportunity to look at a number of cars/SUVs other than the M5, and will take my time deciding. In the mean time, I'm tooling around in my Highlander, with an occassional blast of the RUF (if it ever stops raining) tossed in for fun.
Nevertheless, I learned a lot about how insurance works in this particular matter. Until next time, please be safe.
CP
Thanks for all your kind wishes in the other thread. I finally settled with the insurance companies, and would like to share my first-hand experience. I realize that not all insurance companies operate this way, so please take this as just one person's experience, nothing more.
Health: Still suffering from tense muscles from the shoulder to neck to tample areas. Acupuncture and acu-pressure treatments help some. I'm sore in my sternum, base of neck, and right chest area. It's been 24 days, it may take up to three months before all the sore spots show up.
Property Damage:
Since the other party's coverage limit is only $25k, I have to work with my own insurance to get the totaled value of my M5 covered. Here's what happened. They hire an independent appraisal company (ADP) and surveyed all comparable local M5 sales in the last 6 months. That sets the average value. ADP then looked at my specific car and gave me credits for pristine mechanical and physical conditions. I then sent them all the documentation of my 'enhancements' (SSK, coil-over, Power chip, IATS etc.), and ADP made a judgement call on how that would add value to the car. At the end, they exceeded my expectations by about $725. I'm really happy with the results. They add sales tax on that as well.
My insurance will subrogate the other side to get the $25k back. I will get refunds on the vehicle registration fee and insurance premium. The other side will reimburse my $1k deductible (good will gesture), plus a minimum amount for loss of use. If I had rented a car, they'll cover the rental. Since I didn't rent, the loss of use is an in-pocket amount to me. It's really minimal, and covers the period from the date of accident to when the insurance settlement amount was first proposed. The loss of use is part of the $25k limit, the $1k deductible reimbursement is not.
Buy Back:
I have first dib to buy back the car. They contacted a few salvage yards to establish value. It came to $11,750. However, as the engine breached the fire-wall, and the transmission has dislodged and sunk, I'm not sure those parts can be easily and cheaply salvaged. I passed on the chance for a buy-back.
Bodily Injury:
They have an insured limit on that as well, and that will cover my time off from work, actual medical bills, and a 'pain and inconvenience' amount. At the end of the day, I will have to sign a final waiver to conclude this part of the settlement. This may be a long time coming. If the pain lingers, I have up to two years to settle. If their coverage limit is too low, I'll have to go after the lady in court (civil or small claims). I hope it won't come to that, as I have no intention to get rich over such an unfortunate event, for all involved. I'll post update on this in the future.
So all in all, the total financial settlement as a result of the accident seems ample to replace my M5. I'm taking the opportunity to look at a number of cars/SUVs other than the M5, and will take my time deciding. In the mean time, I'm tooling around in my Highlander, with an occassional blast of the RUF (if it ever stops raining) tossed in for fun.
Nevertheless, I learned a lot about how insurance works in this particular matter. Until next time, please be safe.
CP
Last edited by CP; 02-18-2005 at 02:13 AM.
02-18-2005, 01:07 AM
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CP:
It still hurts to hear of this incident. At least it sounds like you will be treated fairly on the financial front.
On the healing side, we should get another drive together soon and enjoy some good backroads sights and roadside grub !!!
Do let us know what you replace the M5 with. Curious minds await.
It still hurts to hear of this incident. At least it sounds like you will be treated fairly on the financial front.
On the healing side, we should get another drive together soon and enjoy some good backroads sights and roadside grub !!!
Do let us know what you replace the M5 with. Curious minds await.
02-18-2005, 01:08 AM
#3
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Pong
Sorry to hear of your misfortune, but glad you're on the mend.
It may not be a good idea to be so detailed in an internet post. You might think about editing out the end of your 3rd paragraph. Property damage recovery is generally limited to actual loss, i.e., the fair market value of the car. So if, just as an example, by some stroke of good fortune an owner is offered a settlement above what s/he believes FMV may be, that's not something to announce to the entire world. OTOH, if the offer is below FMV, it's OK to publically gripe.
Just some free advice worth what it costs
Sorry to hear of your misfortune, but glad you're on the mend.
It may not be a good idea to be so detailed in an internet post. You might think about editing out the end of your 3rd paragraph. Property damage recovery is generally limited to actual loss, i.e., the fair market value of the car. So if, just as an example, by some stroke of good fortune an owner is offered a settlement above what s/he believes FMV may be, that's not something to announce to the entire world. OTOH, if the offer is below FMV, it's OK to publically gripe.
Just some free advice worth what it costs
02-18-2005, 02:12 AM
#4
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Thread Starter
Dan,
Thanks for the advise. Good thing is that ADP provided a certified value, i.e. they surveyed comparable cars on the market, and felt that's what my car is worth (FMV), before my carrier agrees on the value. I always thought the insurance company has final say on the value as they have to pay that amount. Turns out they told me they must get a certified value from their appraiser before they can stipulate a value to me. As I said, that number actually exceeded what I expected. Your concern is the reason why I didn't divulge the actual amount. Although I have actually seen 4-5 M5s asking for more than my settlement amount, so if I had hung in there, I could possibly find a buyer at that price. I'm just saying that if I had to sell my car, I would not have the patience to hang in there for the last dime.
I used to be an appraiser, and realize how subjective a 'value' can be. Just as an aside illustration, we were refinancing our homs, my next door neighbor's appraised value was twice mine. Turns out they were seeking a mortgage twice mine as well. In both cases, the FMVs of our homes were fully 'certified'.
CP
Thanks for the advise. Good thing is that ADP provided a certified value, i.e. they surveyed comparable cars on the market, and felt that's what my car is worth (FMV), before my carrier agrees on the value. I always thought the insurance company has final say on the value as they have to pay that amount. Turns out they told me they must get a certified value from their appraiser before they can stipulate a value to me. As I said, that number actually exceeded what I expected. Your concern is the reason why I didn't divulge the actual amount. Although I have actually seen 4-5 M5s asking for more than my settlement amount, so if I had hung in there, I could possibly find a buyer at that price. I'm just saying that if I had to sell my car, I would not have the patience to hang in there for the last dime.
I used to be an appraiser, and realize how subjective a 'value' can be. Just as an aside illustration, we were refinancing our homs, my next door neighbor's appraised value was twice mine. Turns out they were seeking a mortgage twice mine as well. In both cases, the FMVs of our homes were fully 'certified'.
CP
02-18-2005, 02:19 AM
#5
Pong- Glad you are satisfied with your settlement and that you were treated fairly. Hope you health returns to 100% soon as that is the most important issue! It was great meeting you at the BAR drive and I look forward to actually joining on a drive soon.
Cheers, Brad
Cheers, Brad
02-18-2005, 02:20 AM
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I'm glad the matter is ambling along to a satisfactory conclusion, CP. Any thoughts on what the next vehicle will be?
Most importantly, get well.
P.S., I'm shocked that a driver is allowed to have so scant a coverage limit as $25,000. By law, I don't think we can carry so little here in MD, but I could be wrong.
Most importantly, get well.
P.S., I'm shocked that a driver is allowed to have so scant a coverage limit as $25,000. By law, I don't think we can carry so little here in MD, but I could be wrong.
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02-18-2005, 02:27 AM
#8
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Pong,
Glad to see you're on the mend. Seems like you have a fair insurance company. Which company is it? Looking forward to hearing about your new car, whatever that might be.
Take care,
Glad to see you're on the mend. Seems like you have a fair insurance company. Which company is it? Looking forward to hearing about your new car, whatever that might be.
Take care,
02-18-2005, 02:38 AM
#9
Race Director
Thread Starter
Eric,
I have All State. I'm very pleased with them in this matter. Not just the final settlement amount, but that they are available, knowledgable, and seems to truely care about my well-being. I have been with them for over 15 years.
As for the next car, there's a 50% chance I'd get a 2003 M5 with CPO. I'm still checking out other cars, such as Lexus RX 400 hybrid (or RX 330). Acura RL, C6 Z-O6, Land Rover L-3, SL55, SLK and a few others. Looking is fun too.
CP
I have All State. I'm very pleased with them in this matter. Not just the final settlement amount, but that they are available, knowledgable, and seems to truely care about my well-being. I have been with them for over 15 years.
As for the next car, there's a 50% chance I'd get a 2003 M5 with CPO. I'm still checking out other cars, such as Lexus RX 400 hybrid (or RX 330). Acura RL, C6 Z-O6, Land Rover L-3, SL55, SLK and a few others. Looking is fun too.
CP
02-18-2005, 02:47 AM
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Pong,
I am glad to hear that this misfortune is working out, at the minimum, to your satisfaction. Also glad to hear that Allstate have treated you fairly as they are my insurance for all my vehicles as well. I hope you will continue to improve on your health status.
I am glad to hear that this misfortune is working out, at the minimum, to your satisfaction. Also glad to hear that Allstate have treated you fairly as they are my insurance for all my vehicles as well. I hope you will continue to improve on your health status.
02-18-2005, 02:50 AM
#11
Originally Posted by CP
....As for the next car, there's a 50% chance I'd get a 2003 M5 with CPO. I'm still checking out other cars, such as Lexus RX 400 hybrid (or RX 330). Acura RL, C6 Z-O6, Land Rover L-3, SL55, SLK and a few others....
02-18-2005, 02:53 AM
#13
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Pong. I haven't been following this incident. This is the first I've heard about this.
Sorry to hear about your accident thus pain. I sincerely hope your health imroves.
Sorry to hear about your accident thus pain. I sincerely hope your health imroves.
02-18-2005, 03:01 AM
#15
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Thread Starter
Originally Posted by nota_troll
Pong. I haven't been following this incident. This is the first I've heard about this.
Sorry to hear about your accident thus pain. I sincerely hope your health imroves.
Sorry to hear about your accident thus pain. I sincerely hope your health imroves.
I can't link Rennlist threads anymore. But if you searched threads started by CP, you'll find the original thread posted about January 21 or so. The accident happened on 1-20-05.
As for the RUF, it's a true beast (thanks Viperbob). But it's been raining non-stop here. Rain+RWD+426HP = bad news. So I'm taking it real easy, especially after I just totaled my M5.
Also, knowing where I'm hurting, I'm glad I'm not built like your avatar.
CP