EDMONTON – It doesn’t take much these days for a vehicle to be written-off after a collision. The process that follows, though, can be overwhelming for some – at times, leading to a battle between you and your insurance company.
The Fight
When David Jou’s vehicles were vandalized, he felt the adjuster offered him a figure about 30 to 40 per cent below market value for one of his cars. So he asked to see the appraisal report, which contained names of dealers that were reportedly consulted.
“The people that were listed on that report didn’t exist. One man had retired a year before and the other guy had never worked at that place,” Jou said.
Within about a week, the insurance company came back to him with an offer of $26,000, which was $9,000 more than the original offer of $17,000.
“It is worth it to fight and ask questions.”
Jonnymike Welycochy also wasn’t willing to back down after his insurance company offered him an amount $11,000 below what he felt his Viper was worth. After holding his ground for just over three months and threatening legal action, he wound up with $8,000 more in his pocket.
His advice? “Toughen up and say ‘no, not acceptable’…You’ve gotta ask for supervisors, superintendents and work your way up.”
“Do your homework, do your legwork,” he added. “Chances are with the right attitude and right information behind you, you should be able to get some more.”
The Process/Options
It all starts with an adjuster, who handles your claim. An insurance appraiser determines how much your vehicle is worth using online price guides and ads, along with dealership listings for comparison. Aside from your vehicle’s make, model, year, and odometer reading, its overall condition, and any upgrades you put into it all affect the value.
“Don’t be afraid to go back to your insurance company and ask them, and show them your evidence. Sometimes they get it wrong,” admitted Heather Mack of the Insurance Bureau of Canada.
If you feel the adjuster’s offer doesn’t reflect your vehicle’s true value, you also have a right to hire your own appraiser (the cost of that starts at around $400) and fight for more money.
The two appraisers will then sit down and try and agree on a figure.
If they’re not able to come to an agreement, your case can be heard by a neutral third party called an umpire, whose decision is binding. Consumers and insurers split the cost.
There’s also the choice of going to court, as appraiser Ed Grieve with Sunburn Auto Appraisals explains.
“You can go and sue the at-fault party for the value of you vehicle; then of course they will go to their insurance company, the insurance company will step in and indemnify them and then you go to court and get an unbiased judge’s decision on the value of the vehicle.”
Free options including turning to an ombudsman, which every insurance company in Alberta has, or the General Insurance OmbudService.
Lastly, you may be able to reach a settlement with your insurer to buy your damaged vehicle back after if it is written off. You can use it for parts or repair it, and have it re-inspected to be able to insure and register it again. However, it will always be branded as a “rebuilt” vehicle; this might make it more difficult to re-sell.
Other tips
– Keep receipts of any upgrades.
– Take pictures of your vehicle.
– Get your vehicle appraised before you find yourself in a sticky situation.
“If something did happen to it, there’s no fight. It’s been documented you have got the proper coverage if it’s been appraised for $70,000, there’s your cheque for $70,000,” explained Grieve.
And if you’re still unhappy with how your insurance company has handled the process, “maybe when it comes time to renew, you should take that into account and shop around,” Grieve added.
“People pay good money for insurance and your insurance company should be there for you.”
Watch below: Julie Matthews joins Gord Steinke on the Early News to talk about vehicle write-offs
With files from Julie Matthews, Global News
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