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Posted by h on January 17, 2010, 8:02 am
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> Bill wrote:
>> If an older car (say 10 years old) is in an accident and totaled, how
>> much does the insurance company pay you?
>>
>> How do they determine value?
>>
>> Say they just want to pay $1000.00 and it would cost me $5000.00 to
>> get another car in similar running condition (I do a LOT of work on
>> my car including rebuilding the engine when needed, etc. I keep it in
>> tip top reliable running condition.)
>>
>> I'm trying to figure out if I should just have liability insurance or
>> if it would be worth it for full coverage.
>
> Whatever an equivalent used car would cost you. If the insurance company
> is being unreasonable in what they offer, tell them you will just continue
> to rent a car on their tab until you can find the replacement at their
> price. When I did that, they suddenly became a lot more reasonable.
>
Get the cheapest coverage legally allowed, with the highest deductible you
can get. Put the money you're not spending on insurance into your savings
account. If your car is totaled make the best deal you can with the
insurance company. Then, go after the idiot/drunk/whatever who hit you and
insist that his/her insurance company "make you whole". In other words,
since you did nothing wrong you should not have any out of pocket expenses.
That includes your deductible and any unreimbursed expenses from the
accident such as medical bills and replacement car costs.
Example: My ex-husband was driving on the highway, at the speed limit, in
the right lane. A semi side-swiped him and smashed him into the jersey
barrier. The car was totaled, he was fine. The truck left the scene without
stopping, but my ex managed to get the license number. My ex's insurance
paid about $1k (blue book value of the car), but it was an old Subaru in
pristine condition with only 175k miles (my Subarus last at least 250k
miles), so he was expecting to get at least 4 more years out of the car. He
found a similar Subaru for $4k and asked the truckdriver's insurance company
for the remaining $3k. They laughed, he sued in small claims court (the
driver and the driver's employer) and won. The insurance company eventually
had to pay up.
Of course, this only works if you are not at fault in the accident. I've
been hit twice in my life, both times rear-ended while stopped at a traffic
signal. Minor damage, fully-covered by my insurance, guilty driver's
insurance had to pay my $1k deductible. If you're the person who usually
causes the "accidents", however, then definitely buy all the insurance you
can.
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