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 Post subject: Can an auto insurance company not pay full price for parts?
PostPosted: Tue Apr 24, 2012 11:08 am 
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A few weeks ago an uninsured motorist pulling and untagged trailer cut me off going about 15mph and impacted the left front wheel of our BMW e39 Touring with the right axle of the trailer. Cosmetically, there is one small scratch, front bumper sags, and the wheel is scuffed. In order to drive, I have to have the wheel cranked about ~1/3 turn to the left. I took it to Haddock of Wakefield. The cosmetic stuff is cheap (~$800), but the shop wants to replace the steering rack, tie rods, etc. for $4,000. My insurance is supposed to cover it under my uninsured motorist policy and then pursue legal action against the uninsured at fault party.

The adjuster wants a second opinion which I can understand, but said that if the damage was truly $4,000, that they would only pay about 50% of the parts bill since the current parts are depreciated (150K+ miles).

Can an auto insurance company not pay full price for parts?

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 1:00 pm 
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Chris Halweg wrote:
A few weeks ago an uninsured motorist pulling and untagged trailer cut me off going about 15mph and impacted the left front wheel of our BMW e39 Touring with the right axle of the trailer. Cosmetically, there is one small scratch, front bumper sags, and the wheel is scuffed. In order to drive, I have to have the wheel cranked about ~1/3 turn to the left. I took it to Haddock of Wakefield. The cosmetic stuff is cheap (~$800), but the shop wants to replace the steering rack, tie rods, etc. for $4,000. My insurance is supposed to cover it under my uninsured motorist policy and then pursue legal action against the uninsured at fault party.

The adjuster wants a second opinion which I can understand, but said that if the damage was truly $4,000, that they would only pay about 50% of the parts bill since the current parts are depreciated (150K+ miles).

Can an auto insurance company not pay full price for parts?


Calling Dr Cline, calling Dr Cline.....

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 2:14 pm 
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Chris Halweg wrote:
A few weeks ago an uninsured motorist pulling and untagged trailer cut me off going about 15mph and impacted the left front wheel of our BMW e39 Touring with the right axle of the trailer. Cosmetically, there is one small scratch, front bumper sags, and the wheel is scuffed. In order to drive, I have to have the wheel cranked about ~1/3 turn to the left. I took it to Haddock of Wakefield. The cosmetic stuff is cheap (~$800), but the shop wants to replace the steering rack, tie rods, etc. for $4,000. My insurance is supposed to cover it under my uninsured motorist policy and then pursue legal action against the uninsured at fault party.

The adjuster wants a second opinion which I can understand, but said that if the damage was truly $4,000, that they would only pay about 50% of the parts bill since the current parts are depreciated (150K+ miles).

Can an auto insurance company not pay full price for parts?


Have your premiums depreciated?

A deer hit my brand new car (less than 2 months old) back in 1998 and the guy at the body shop said "The insurance company won't pay for new parts". I told him that was between me and my agent. My agent saw things my way, which was good because I decided if he gave me any trouble I was going to drop him like a hot potato.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 2:39 pm 
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Sounds like the standard line "First deny all claims" I get from health ins companies. I smell shenanigans. Call out the adjuster, drop a hint that you know an attorney...or threaten to talk to Cline Hall.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 3:00 pm 
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It sounded like BS to me. I could possibly see if it were a wear item, but a steering rack, come on. It's not like I am driving around with 50% of a car.

Right now I'm waiting on a second opinion and then I'll go from there. I've never had to file an auto insurance claim before, so I thought I would look for some feedback.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 4:33 pm 
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I think they want/like to do that on high mileage and/or older cars. I don't know what your rights are however.

I seem to remember a number of years ago when I was hit by someone (their fault) and I was in my Honda Odyssey that they wanted to put a used strut on the right front. If I remember correctly I balked and I think they put on a new strut. The car was a few years old at that point, but was not over 100K.

Keep us posted as to how this goes!

Richard

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 7:06 pm 
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It may be reasonable to request that they install a re-manufactured unit as the replacement. When negotiating it is always a good idea to offer a suggestion that will satisfy you and give the other party a way to be "agreeable" without appearing to cave in.
When our 200K+ BMW 525i had the rear bumper hit by someone insured by our same insurance company the claim amounted to about 50% of the "wholesale/trad-in value" and they totaled the car. We bought the car for $300 with a salvage title so we would have something to drive while shopping for the replacement. We later sold the car to a friend for $600 which was a steal for the car with just a crack in the bumper fascia.
One other item to keep in mind....you agent works for you and only gets a paycheck if you keep your policy. The claims adjuster works for the insurance company and generally does not have your best interest at heart. Call your agent and explain how you are being treated....then call Cline (who is not my agent, but a club member and advertiser) (shameless promotions dept.)
Charlie G

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Tue Apr 24, 2012 8:24 pm 
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You're just jealous

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Location: Raleigh, NC
FYI when our 97 Mustang's rear bumper got hit Capital Ford's body shop said that it was actually better to use a "junk yard" bumper cover compared to a new one. The junk yard cover was likely to be a better fit. The result was perfect! Both the used cover and a new cover requires similar paint prep, etc.

Dick

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 9:51 am 
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State Farm tried the same thing with us last month. after several phone calls to State Farm and one phone call to the NC DOI, their attitude changed drastically and they paid full price for the repairs. :wink:

http://www.ncdoi.com/Consumer/

our situation is a bit different as the women that plowed into the wife's car had insurance. crooked ass State Farm but still she had insurance.


and FYI, the idea to call the NC DOI was from who else but our trusty Mini driving insurance expert....................... Mr Cline Hall 8)

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Last edited by steve remchak on Wed Apr 25, 2012 9:54 am, edited 1 time in total.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 9:53 am 
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This is all good info. I'm still in waiting mode for the second estimate.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 9:53 am 
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Are they talking about using reman vs OE parts?

I would be okay with reman parts. I seriously doubt many people here would buy a NEW OE steering rack, vs a reman rack if it was just in need of replacement.

Now, if they're talking junkyard hard parts, then no. I wouldn't even humor that idea. I would consider junkyard body parts. Most of the OE body parts, even from a junkyard will be better than the aftermarket body parts.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 10:11 am 
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steve remchak wrote:
State Farm tried the same thing with us last month. after several phone calls to State Farm and one phone call to the NC DOI, their attitude changed drastically and they paid full price for the repairs. :wink:

http://www.ncdoi.com/Consumer/

our situation is a bit different as the women that plowed into the wife's car had insurance. crooked ass State Farm but still she had insurance.


and FYI, the idea to call the NC DOI was from who else but our trusty Mini driving insurance expert....................... Mr Cline Hall 8)


I have a good friend who was an incredibly successful State Farm agent for 36 years and retired about 3 years ago. He told me in no uncertain terms to NEVER insure with State Farm. He was incredulous with how the company changed in the 2000s and what his customers (he had over 8000 clients) experienced with claims issues and then being dropped by the company.

On a secondary note, I (stupidly) had Allstate for many years (embarrassed to say how long, geez, but more than 25), and I switched all our insurance to Cline Hall last year. My 84 year old father had switched to Cline a few months prior to that and put him and Erie through the wringer to figure out every last detail. :) I'm insured with Erie now and extremely happy with better coverage than Allstate and saving more than $1300 per year. I should have dumped Allstate right after Fran hit as we had a horrid claims experience which they made up for by sending us a big check months later that more than covered what they should have done right the first time.

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 10:28 am 
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Location: Durham, NC
Jason Mauldin wrote:
Are they talking about using reman vs OE parts?

I would be okay with reman parts. I seriously doubt many people here would buy a NEW OE steering rack, vs a reman rack if it was just in need of replacement.

Now, if they're talking junkyard hard parts, then no. I wouldn't even humor that idea. I would consider junkyard body parts. Most of the OE body parts, even from a junkyard will be better than the aftermarket body parts.


I think it was they are only paying for 1/2 the repair, so 2k out of pocket in his case.


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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 10:32 am 
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You guys have me thinking of calling Mr. Cline now :lol:

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 Post subject: Re: Can an auto insurance company not pay full price for par
PostPosted: Wed Apr 25, 2012 10:45 am 
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JohnByers wrote:
You guys have me thinking of calling Mr. Cline now :lol:



tell him i sent you. that way i get the cold beer referral fee. :lol:

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