Category: Insurance

A totaled car is one of the worst things that can befall a car owner. Most of us tend to get a little bit attached to our cars, and losing one is like losing a faithful old horse. Many car owners get an additional kick in the rear from their insurance company, as well. While most insurance companies will compensate you for a totaled car, they are unlikely to give you a whole lot. In this article, we will look at how insurance companies determine the value of your car in a situation like this.

The Insurance Company Doesn’t Want To Pay

This principle is true of all insurance companies: They always try to give you as little as possible. If your car is valued between $10,000 and $15,000, for instance, you can bet they will not offer you more than $10,000 in compensation. Naturally, this will also depend on the quality of your policy. You see, insurance companies will promise to reimburse the value of your car…but their appraisers are the ones who determine the value.

That same principle applies to repair costs. The insurance company will have their people do an estimate of the repair costs, and they will probably insist that you use a company-approved repair shop. In this case, you can bet that they will lowball the repair costs any way that they can.

Actual Cash Value (ACV)

When you sign an insurance policy, it is important that you understand the concept of “actual cash value.” Many people make the mistake of taking this term at face value. When the company says they will recoup the actual cash value of your car, you assume that they will compensate you for the original cost of the vehicle.

ACV refers to the amount of money for which the vehicle can be sold. This is an estimate made by the insurance company and is based on the market value of the car before the crash. Thus, used cars or older cars will often be valued quite low.

You can deal with this issue by getting a better insurance policy. Higher-quality plans will sometimes agree to reimburse you for the “replacement cost” of the vehicle. If this terminology is used, it means they will be sure to pay you enough for the replacement of the vehicle.

How Are These Prices Determined?

After an accident, your insurance company will send an adjuster to inspect the damage and make estimates. If the cost of all necessary repairs is greater than the value of the car, it is considered to be “totaled.”

Then, they will find the actual cash value of your car. They will do this by checking various prices for similar vehicles. The price of any vehicle will vary quite a bit, so make sure you read the insurance policy carefully. Some companies will average all the prices they can find, while others will give you the highest (or lowest) price estimate that they can find.

Your Insurance Plan Makes A Big Difference

If you are one of those people who gets the bare minimum in terms of insurance (liability only), then you are probably out of luck. Even if your car is totaled, your policy will not pay for the damages. Liability insurance will only pay for damage to the other driver, and so it won’t help your car situation at all. On the other hand, those with more expensive plans might be compensated with a comparable new vehicle.

What If Your Car Isn’t Paid Off?

If you have financed a car, and you total it, the debt does not go away. You are still liable for the cost of the vehicle, and your insurance company won’t normally cover the cost. This is a very bad situation, and it often occurs when a vehicle is wrecked shortly after its purchase. As soon as the car is driven off the lot, it is considered “used,” and the price goes down accordingly. Thus, the ACV might not even be enough to cover what you owe. If you are financing a car, you might want to consider purchasing gap insurance, which is meant to guard against this specific problem.

Always Try To Negotiate

Most lawyers will suggest that you should always turn down the insurance company’s first offer. In most cases, it will be a lowball offer that is nowhere near enough to put you in a comparable vehicle. In some cases, they might not be willing to budge, but it’s always worth a try.

If this process turns into a negotiation (and it usually does), you should consider hiring the services of an attorney. For large settlements, it is probably worth the cost of legal counsel to ensure that you get what you need and deserve. An experienced lawyer will definitely be able to negotiate more effectively with your insurance company.

Conclusion

When dealing with the insurance company, it pays to be on your toes. While they are certainly not an enemy, you cannot always count on them to represent your interests. That’s why you should always do your homework and learn the rules and regulations thoroughly. It may seem like you are at their mercy, but your insurance company is bound by the same laws that you are. We hope that we have answered your question in a satisfactory manner. If so, please fill out the contact form below so that we can keep you updated with future articles.

Auto insurance companies decide what damage to cover based on the cause of the damage instead of the type of damage that has happened. An insurance company might pay to repair or replace any damaged part of a car following a covered accident or other covered loss, including damage to the vehicle’s mechanical parts. Whenever you purchase insurance, you can choose the types of coverage that you wish to include in your policy. Each type of coverage will cover a different type of loss. You need to know what the various types of coverage pay for so that you make good decisions when you purchase coverage and choose your deductible. Here is some information about auto insurance coverage and transmission repair from Elmer’s Auto Body.

When claims will be handled

When you make a claim to your insurance company, the insurance company representative will compare what caused your loss with your various types of coverage. If the cause of your loss is not one of the covered types of perils in your policy, your company will not cover the repairs and will deny your claim.

Collision and comprehensive are the primary types of insurance coverage that you can use to repair your vehicle. Collision insurance pays for damage that occurs when your vehicle is damaged in a collision with another vehicle or object. Comprehensive coverage covers all other types of covered perils from vandalism, animals, and the weather.

Damage that results from deterioration, mechanical failure, or other non-accidental causes will not be covered by your auto insurance policy. To be covered, the damage to your vehicle must be sudden and accident-related or caused by other people, animals, or storms.

When you file a claim with your insurance company, an insurance adjuster will be sent to inspect your vehicle. The adjuster will determine whether the damages were caused by your reported type of loss and how much the repairs will cost. If the facts of your reported loss match the type of damage to your vehicle, your insurance company will settle your claim and allow the repairs to start.

Will an insurance policy pay for transmission damage?

Your vehicle’s transmission is among the most expensive components to replace. If you are experiencing transmission problems, the repairs will only be covered by your insurance if your transmission’s damage was caused by a covered peril. There are several ways in which your transmission’s damage could be covered, including the following:

• Transmission damage caused by flooding
• Transmission damage caused by vandalism or tampering
• Transmission damage caused by a front-end collision
• Transmission damage in a rear-end accident while it was parked, causing the transmission to be forced to move while in park

Severe accidents of other types can cause damage to your transmission. In these types of cases, your insurance company will likely pay to repair or replace it. If your vehicle has not been in an accident and has no other signs that it has been damaged, the transmission’s failure probably resulted from something else. Repairs to transmissions that fail without a clear reason will be unlikely to be covered by your insurance policy. You should ask your mechanic to explain how the damage happened so you can file a claim if it appears that the failure might have been caused by vandalism or something unrelated to mechanical problems.

What will happen if my transmission has to be replaced?

If the damage to your transmission was caused by a covered peril, the insurance adjuster will work with your mechanic to determine whether the transmission can be repaired or if it will need to be replaced. Depending on how extensive the damage is, the claim could quickly become expensive.

Replacing a transmission is costly. If you have an older vehicle, the cost to replace the transmission may be higher than your vehicle’s value. If this occurs, your insurance company would declare your vehicle to be a total loss. The insurance company would then pay you the actual cash value of your car instead of paying for the repairs.

When your vehicle is declared to be a total loss, the insurance company will sell it for scrap. If you want, you will be allowed to keep your car for a small fraction of its value with a salvage title. If you choose to let the insurance company take it, you will receive the full settlement amount minus your deductible.

If your transmission’s damage was not caused by a covered peril, it may still be more expensive for you to repair it than to buy a new car. If this happens, you will need to figure out whether to pay for transmission repairs or to sell your vehicle and purchase a new one.

Sudden mechanical failures can be very inconvenient and expensive. This makes it important for you to follow your vehicle’s maintenance schedule. When your vehicle starts to age and has problems, you should trade it in for a newer vehicle. It is also a good idea for you to save money in an account for emergencies so that you will be prepared for an unexpected mechanical failure that occurs.

Contact Elmer’s Auto Body

Elmer’s Auto Body has been helping people in South Jersey with their auto repair needs for more than 70 years. If your vehicle has been damaged in an accident or by the weather, we can work with your insurance adjuster to help you determine whether your vehicle is repairable or if it needs to be replaced. Contact us to learn about the services that we offer by filling out our online contact form. You can also reach us by telephone by calling us at one of our three convenient New Jersey locations.

The body of your car, truck, SUV, or van is made out of metal. When metal is exposed to wet, cold climates, it can rust over time. Advances have been made in materials that are used to manufacture vehicles, including carbon fiber. The carbon fiber helps to prevent corrosion, but it is impossible to make a vehicle that is immune to rust. There are some steps that you can take to help to prevent rust from forming on your car. You should regularly wash your vehicle and avoid driving it through water puddles if you live in an area that salts the roads. While taking proactive steps can help you to extend your vehicle’s life, there is no guarantee that your vehicle will not rust. Here is what Elmer’s Auto Body believes that you should know about rust and your automobile insurance policy.

What causes rust to form on vehicles?

Most cars contain some parts that are built out of metal. If you live in a wet climate, rust can easily develop. Corrosion and rust can result from rain, snow, and humidity. Corrosive elements are widespread. If you live near the coast, your car is at risk of rusting much faster than the average. Exposing cars to water places them at risk for rust. When the water is salt water, the process speeds up. The ocean is made out of saltwater, making it understandable that you can see many rusty cars along the coasts.

People who live in snowy areas also may have a higher risk of rust. In many areas, cities salt the roads to melt the snow. This means that you can live away from the coast and still have your vehicle suffer rust from the salt on the roads.

Understanding full coverage auto insurance policies

Some people have the mistaken belief that their full coverage auto insurance policies will cover every hazard. However, full coverage auto insurance policies cover only the physical damage that is caused by the perils that are specifically covered under the policies. Most auto insurance policies contain exclusions for the types of perils and damage that will not be covered.

If you have full coverage auto insurance with comprehension and collision coverage, your insurance company will pay for vehicle repairs or vehicle replacements if your car is declared to be a total loss. You will be covered if you are involved in a car accident, including when your vehicle is damaged while it is parked.

Damage to your vehicle that occurs over time, including rust that develops, will not be covered by your full coverage auto insurance policy. This is because rust is considered to be normal wear and tear, which all insurance companies specifically exclude from their full coverage policies.

Do auto insurance policies pay if you are in an accident that was caused by rust?

While your policy will not pay to repair a rusted automobile part, you might wonder if your coverage will pay for incidents in which a part falls off of your car while you are driving because of rust. You can see that rust is developing when the metal begins going through oxidation. Oxidated metal is weaker and can cause bumpers or other parts to fall away from the vehicle. If your vehicle is rusted, a falling part can cause an accident that can harm someone else.

If a driver knows that his or her vehicle is so rusty that it is no longer safe to drive, he or she may not have a covered claim for damages. Drivers who do not know that the rust is present may still have liability coverage, however.

Why do insurance companies total cars after flood claims are filed?

Flood claims are sometimes filed when someone drives into water running across the road, storms flood a neighborhood, or a vehicle rolls into a lake because of a faulty emergency brake. If your vehicle is immersed in water, your insurance company will likely declare that your car is a total loss no matter what it looks like after it has dried.

Water damage can leave a vehicle susceptible to rusting. This means that an insurance company will likely total the car after a flood claim. You can talk to your insurance company if you have submitted a flood claim to find out how the company might handle it.

How to prevent your vehicle from rusting in the future

Since you now know that you will be unable to file a claim with your insurance company to complete rust repairs, you should take proactive measures to preserve the life of your car’s metal parts. Here are some things that you can do to help to prevent rust from forming:

• Take your car to the car wash after driving it in the winter
• Regularly wash your vehicle’s undercarriage
• Store your car in a garage
• Try to avoid driving through water on the roadway
• Keep the paint on your vehicle maintained
• Wax your vehicle
• Repair any paint chips or bubbles as soon as possible

Self-insuring for rust

Self-insuring refers to putting money back to pay for repairs that you might need. This can be a good idea because repairing rust on your vehicle is not cheap. Depending on its size and location, removing a patch of rust could cost you from $500 to $1,000.

You can self-insure against rust by saving a small sum of money each month for emergency repairs. If you need to pay for rust repair, you will have the money available in your savings.

While auto insurance is important, it will not help you in every situation. You should read your policy so that you understand the exclusions that are contained in your contract with the insurance company.

Contact Elmer’s Auto Body

If you notice that rust is developing on your vehicle, you should take action quickly to prevent it from spreading. Elmer’s Auto Body has been a trusted auto body repair provider in South Jersey for more than 70 years. Contact us today to learn how we can help you by filling out our online contact form or calling one of our three convenient locations.

It seems common knowledge today that some auto body repair shops have chosen a dishonest way to do business, and fraud has become part of the game with auto body work. There are ways to avoid both insurance fraud schemes and other scams, and the signs are definitely out there to watch for and be aware of in the collision repair racket. Here are some tips on how to deal with them.

Deductibles and Related Maneuvering

Be cautious when auto body shop personnel suggest that your deductible can be waived, buried or recovered. Your deductible could simply be hidden in an over inflated repair estimate, or in shop charges for more expensive original equipment parts that are then substituted with cheaper, damaged, counterfeit or previously repaired parts. You also need to watch out for services not given or parts paid for, but not installed. Inflated costs, switching out of parts, the inclusion of parts or neglect of services are unlawful in many instances.

More can happen when the body shop repairer misrepresents the actual damage and states that a vehicle is more seriously damaged than it actually is. This type of action is hiding repair costs from the insurer and including the deductible within the repair costs. Obviously, the repair costs have been increased and the body shop profits while the insurer is left with paying the manipulated repair costs and the deductible.

Tow Truck Connection

If you’ve been involved in an accident and your vehicle looks to be a serious contender for body work, you want to be cautious when an unsolicited tow truck driver shows up on the scene a little too quickly and attempts to get you and your vehicle to a repair shop right then and there. This is a ploy used by unscrupulous tow truck drivers as they charge outlandish fees for transport, plus they take your vehicle to a dishonest body shop that may hold your vehicle hostage with ever increasing fees and demands for insurance payments. Also, the tow truck driver may make a concerted effort to refer you to unethical health care providers and lawyers who make a living through fraudulent insurance scams.

Airbag Replacement

Believe it or not, this is just one other car repair scam that is both dangerous and expensive for insurers and policy holders. Faulty airbag replacement is really no replacement at all. Once an airbag has been deployed through an accident situation and is brought into a repair facility for replacement, mechanics simply neglect replacing the airbag with a new one and resort to stuffing the vacant airbag compartment with all kinds of junk materials like aluminum cans, packing peanuts and other materials, which will allow the airbag deployment sensors to function.

Another tactic that fraudulent mechanics use is the installation of an already used or stolen airbag. Once installed, the repair shop simply charges full price to the insurance company for a new airbag. There are even crooked shop owners who will attach an already used or deployed airbag to a steering wheel to create the appearance of an already deployed airbag when the one behind the steering column is still in perfectly good shape. This is just another tactic to increase the amount of an insurance claim.

In most instances, you’re not getting a new airbag and any bag that may be a replacement will likely be unusable and unworkable. With the prevalence of this kind of scam, some states have passed laws to protect consumers from faulty airbag replacement. If an airbag has been replaced with a defective one, those responsible could be penalized with prison time and high fines.

Glass Replacement Fraud

Another insurance fraud involves windshield and other vehicle glass replacement on your vehicle. If you are approached out of the blue by a so-called windshield or glass repair technician, be wary of what they are pitching and selling. They may try to convince you that your windshield needs to be replaced on the spot, and they may just have the perfect windshield replacement for your vehicle. You will likely be told that your car insurance will completely cover the replacement, and their replacement windshield will probably be one that has seen better days. Your insurance rates could be impacted by such a scheme, especially if a technician latches on to your car insurance information and uses it to make other replacement claims using your name and insurance. Falling for this scam could cost you your insurance coverage and a lousy windshield or glass replacement.

Watch for Chop Shops

Another problem with untrustworthy repair shops is their “side work” that usually involves taking on parts from stolen vehicles. You certainly don’t want to unknowingly put your damaged vehicle in a repair shop that is a front for a chop shop that has dismantled stolen vehicles and sold the parts to your repair shop. You don’t want stolen parts as replacements for your vehicle and the strong possibility of your insurance being overcharged for stolen parts.

A Word to the Wise

If you want to avoid auto body insurance fraud, you want to find an auto body shop that is ASE ( Automotive Service Excellence) accredited as well as one that is associated with other creditable organizations. You also want to find a shop that is clean, organized and run in a professional manner and has a stellar reputation.

Another important aspect on your part is to request a full and complete written estimate of any work to be performed and the parts that will be used before any vehicle body work is initiated. Any unusual services, costs or parts used should also be questioned. Consult with your insurance agent if you have any questions concerning your bill.

Avoiding auto body insurance fraud is something that every vehicle owner should have a working knowledge of and if you are at all unsure as to how your car insurance can be affected by fraudulent activity, complete the online contact form and an informed expert will provide you with the information you need to protect your interests and the interest and safety of your vehicle.

Having a child can make car insurance cheaper but the steps involved in making that happen concern a number of changes and policy adjustments. Savings can be realized with a family addition, but rates are no doubt going to be higher for carrying an older child or teenager as opposed to a baby or toddler. So, just what makes an insurance policy less costly when it comes to children? There are different circumstances that can have an impact on insurance costs. Here are a few particulars that will affect insurance costs when it comes to children.

Family Changes

Anytime a family member, particularly a new baby, is added to a family there are considerations to be made with car insurance. The safety of a child needs to be assured and that means assessing current insurance coverage and including coverage that benefits a child’s welfare, at an affordable family rate.

Vehicle Capacity

When you think of providing affordable insurance coverage for a new baby, you have to take a look at your vehicle’s capacity. Is it large enough to accommodate a baby car seat, a baby carrier, diaper, blanket and clothing bags as well as food and bottle bags, a stroller and any other items that are necessary to have on board.

Safer Vehicles

A large, heavy-duty vehicle is going to withstand crashes better as well as provide safety. A larger and safer vehicle, like a van or SUV, may present the possibility of a lower premium. It’s to a family’s advantage to investigate larger and newer cars that are top-rated for worthiness and overall safety.

Newer vehicles are usually safer and better able to withstand collisions, and finding the right vehicle with built-in safety features is important. Vehicles with smart airbags, an airbag on/off switch, adjustable rear shoulder belt anchors, rear shoulder belts, (LATCH) Lower Anchors and Tethers, active head restraints, automatic door locks, child safety locks, push/pull window switches, driver-operated window disabler, anti-pinch automatic windows, accident avoidance system, collision warning, transmission shift interlocks, built-in GPS and a host of other safety features that even include teen driver systems are all features that can be of help in lowering car insurance premiums while protecting precious cargo.

Lower Risk Drivers

Owning a larger, safer and newer car is a good precautionary measure, especially when it comes to transporting children. A new parent is more likely to drive in a responsible and safe manner when a baby or younger child is riding in the same vehicle. A conscientious driver is more likely to receive lower premiums as opposed to an adult who has no children and has a less than stellar driving record. In addition, married adults usually pay lower premiums for coverage than single individuals, as married couples are considered lower-risk drivers.

Lower Premium Possibilities

Though not every parent owns a home, there are those planning on a family who do own property of some kind, which probably qualifies them for a discount or lower insurance rates. Lower premiums are also available to those who have an additional policy through the same insurance company for both their car and home. Joint policies with multi-car, multi-driver discounts are another good way to secure lower rates. Any connection with driver safety and the ownership of a newer car can prompt discounts or lower premiums.

Home Ownership

Buying a home or condominium and becoming a legitimate homeowner is another way to gain a discount on car insurance. Most insurance companies offer a homeowner’s discount on car insurance policies.

Revisions

When family dynamics change, it may be time to revise and increase your liability limits. With children and additional riders in a vehicle, the thought of a possible accident could create a real challenge. With added coverage, there is supplemental insurance available to relieve the cost of all damages. When coverage is limited, any other damages that exceed the limits of the policy will be the personal responsibility of the policyholder.

Deductibles

In addition to liability limits, you may want to look over your deductibles. When family size increases and finances and budgets change, premiums can be affected. As premiums for car insurance can fluctuate with deductibles, there are ways to budget them. You can either lower your deductibles, which will increase monthly insurance payments, or raise deductibles to keep your rates lower. It is advisable and makes sense financially to pay slightly more on a premium particularly if you have to make a claim. Out of pocket expenses will be lower if a claim does occur.

Discounts for Older Children

There are discounts that parents can qualify for in relation to their teen drivers. Professional driving schools, defensive driving courses, electronically monitored driving, good student discounts, and other incentives are available to parents who want to lower their insurance costs and keep their teen driver safe.

Whether you have younger or older children, there are approaches that can be of help in lowering your car insurance rates. It’s important to explore the best providers and their policies. You want to find a policy that will support a growing family and the changes that come with new family additions. If you need further assistance with finding that policy, complete the online contact form and a specialist will get back to you with the information you need to make an informed decision concerning your car insurance needs.