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Posted by tonyb on September 30, 1999 at 16:28:03:
In Reply to: auto replacement after accident posted by Sam on September 30, 1999 at 09:03:47:
Claim for Total Loss is determined by the amount of damage (your claim supported by claim values that you compile), less the salvage value (salvage bids establish salvage value), compared to the Actual Cash Value of your automobile at the time of loss, less deductible. You should be aware that the rules have changed in the company's favor:
The old wording of the N.A.I.C. Unfair Claims Settlement Practices Model Regulation said the insurance company shall not use as a basis for cash settlement with the policyholder an amount which is less than the amount which the insurance company would pay if repairs were made, other than in total loss situations, unless such amount is agreed to by the policyholder. There was no qualification of how the policyholder must spend the cash settlement or on what.
The newer wording asserts a new qualification: "The insurer may elect a cash settlement based upon the actual cost, less any deductible provided in the policy, to purchase a comparable automobile, including all applicable taxes, license fees and other fees incident to transfer of evidence of ownership of a comparable automobile..."
If your car is repairable: "No insurer shall require the use of replacement crash parts in the repair of an automobile unless the replacement crash part is at least equal in kind and quality to the original part in terms of fit, quality and performance. Insurers specifying the use of replacement crash parts shall consider the cost of any modifications which may become necessary when making the repair."
If you have differences with your insurance company claim: Standards for Prompt, Fair and Equitable Settlements Applicable to Automobile Insurance(e) Right to Recourse: newer wording binds the insurance company to Appraisal as a means to resolve a claim in which the policyholder does not agree on a comparable replacement vehicle; however, the insurance company is not required to take action under this subsection if it provided the policyholder with documentation of availability and location of a comparable vehicle. Old wording did not exist on the matter, but the new wording is there in black and white.
If you cannot successfully settle the matter with the wrongful party's insurance, your option is legal action.
How to get WHAT YOU DESERVE (Excerpt from the book, "Policy Ensurance")
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