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sweetcheeks

Questions about insurance check from auto accident

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Hello,

 

I recently had my first accident after 20+years of driving  - Totally my fault. 

I took my car in to get an insurance estimate which came out to close to $2400 (my car is only worth about $3500 before accident) 

they took out my $500 deductible and a $1900 check was sent to me in the mail. 

I also received a check for around $25 for diminished value

 

So Here's my questions -  I am sure the diminished value for my car is more than $25.  How would I fight that with the insurance company ?

and since the damages are already close to the 80%  ($3500*80% =$2800) the point where most cars are totaled by the insurance company,

would it be worth it to ask for more or will it only bump me into a position of having my car totaled??

 

My car runs fine and the damage is mostly to the side door panels.  I would really do not want to have it totaled.   I have gap coverage and my loan would be covered,  but I do not want to get into a newer more expensive car and car payment.  In addition to even higher insurance rates with a newer car+accident on record.

 

I already had a plan to have all of my debt paid off by July 2016.  My plans now are to use the $1900 and pay down debt ( about half),  so I can be debt free closer to the end of this year.  and have the work done once I'm debt free,  or whenever I am ready to sell/ trade in.

 

I am unsure of how this all works and I still haven't cashed the checks,  in case that would constitute acceptance.   I would like to get this figured out as soon as possible so I can deposit the check and get on with paying my debt off.

 

Any help would be greatly appreciated.

 

TIA

 

SC

 

 

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You could appeal the amount of the diminished value but at a $3500 value point it isn't worth the effort.  If you had a new(er) car that had a resale value above $10,000 or at least $5,000 that would be worth fighting.  A $3500 car is at least a decade old and isn't going to hold value much longer anyway. 

 

I would drive it until it reaches the point where repairs are starting to crop up costing more than the value then wait for an end of the month dealer sale where they will give you $3k for anything you can drive, push, pull, or tow in.  Then take the deal and get a newer safer vehicle.  Especially if your damage right now is mostly cosmetic and not affecting drivability.  

 

Use the $1900 to reduce debt thus improving your credit score so that hopefully you also qualify for 0% financing when you do need to replace the klunker.

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Not so much a clunker.  it drives well and dispite being a 2005  it only has about 65k miles on it.   I understand because the car is in total only worth about $3500 that the dvalue check would be low,  I just thought it would be more than $30.

 

SC

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