Insurance doing illegal things?

Insurance doing illegal things?

Good afternoon Yahoo-ers!I am having a problem with my auto-insurance company. If you take the time to read and answer this question, then you have some serious dedication to helping your fellow neighbor, and to Yahoo Answers in general! So I would like to begin by thanking you!Let me start by saying that I did not come from a wealthy background... my parents actually finished a 3 year divorce this year and my mom, brother, and I were financially struggling for a while. I say that because I have been called “spoiled” before when trying to explain this situation.I am 18 years old and worked very hard getting my life insurance license and starting my own brokerage, and finally was able to buy myself a 2005 Mercedes E class, my dream car. I got a loan through USAA and also insured my vehicle through USAA. They had very competitive rates, but I am still paying $2,000 every 6 months for my auto insurance to include everything and have the lowest deductibles possible ($0 comprehensive and $100 collision).I was taking my friend home in the evening on the 8th of December and when we were coming up the hill to make a really bizarre 90 degree turn. When I bean to make the turn and almost finished it, I saw that there was a deer approximately 6 feet in front of my car. I was going 25MPH and swerved to miss it. I almost straightened out completely (on the other side of the road) but unfortunately scraped the side of my car on the curb and my front left tire went up over the curb too. Enough to have my sensitive car deploy the side-curtain airbags on the side it was hit. The damage to my car that could be seen with the naked eye are as follows: front-left tire deflated because the chrome rim bent in and let the air out, skidplate/splashguard became disconnected from the bottom of the front bumper and was slightly hanging down, and the airbags deployed (not all of them in the car, just the side ones so my head wouldn'-t have hit the window).My car reported the accident to the police and the Mercedes-Ben operator asked if I was okay and stated that police and paramedics were on their way. They came and took a report, then towed my car to impound for the evening. It was about 7:30 when the police finally left. It took about an hour total. Then I got home around 8 and filed a collision claim on USAA.com with my friend/passenger that was in the car and it took like 15 minutes. Uploaded pictures I had taken and everything.Nobody called me the next morning. I called USAA, they took a recorded statement and told me to release the vehicle to them and take all of my belongings out of the car “as if I were to never see it again” was the exact verbiage. So I did that that day (Friday the 9th) at around 4PM. My insurance took my car to a SALVAGE yard and it took them 6 days from the accident to do it. They got it out on Wednesday the 14th. Then their “field appraiser” or “estimator” called me on Thursday afternoon at around 3:30, and said that he would begin the estimate on my vehicle immediately after hanging up the phone, I said thank you for calling and asked if he would give me a call within the next couple of days when he finished his estimate. He said “sure”. He later gives me a call exactly 21 minutes later saying the car was a Total Loss and there was $13,000 in damages that he could see. I was shocked. I asked him to list everything that was wrong with my car. His list was extensive! It would have taken him WAY MORE than 21 minutes to even type that list on a computer (in my opinion).After I hung up the phone with USAA'-s estimator, I called and left a voicemail for my adjuster to NOT let the estimate go through their systems and to put a hold on it until I have a third party look at my vehicle because a “Total Loss” is extremely difficult to get removed from a cars history. She didn'-t listen to me and transferred me to another adjuster in Total Loss. I was livid.I called my Mercedes-Ben mechanic and asked him to look over the estimate. He informed me that items, for example: the engine cradle, front absorber, and air suspension... require the vehicle to be lifted and disassembled for him to document and legitimately show that they were damaged and in need of replacement. Something that is impossible to do in the middle of a salvage yard with a pen, clipboard, and no tools.They also are “double dipping” because I filed an insurance claim (comprehensive) 10 days prior because a piece of sheet metal hit my car on the freeway messing up my fender and bumper. They paid out and I ordered the parts, and waited for the bumper and fender to get replaced when they arrived at Mercedes. In this new claim, they are charging it again, which is adding to the total repair costs, leading up to be able to total the car. Highly illegal.[CONTINUED IN DETAILS]

mbrcatz

Your background is irrelevant.They're not double dipping.You're misunderstanding what a "right" is.You can keep your car, and have them subtract "salvage value" from the check that they pay your lender. Then, YOU can "make a fortune" selling your car for parts.You are seriously not understanding what insurance is, or how it works.And clearly, you WAY overpaid for your car in the first place, borrowing money you didn't have and couldn't afford to pay back (based on your current financial problems!), at a really high interest rate.This is a perfect example of why it's really NOT SMART to borrow money to buy a car. You will almost always end up screwing yourself on BOTH the financing end, AND how much you PAY for the car, and WHEN you get in an accident, your fault or not, YOU are left holding the bag, for the LOAN you agreed to pay back, on the CAR you overpaid for, in the first place!!This is an expensive life lesson, at your age, but maybe it will help you avoid making even MORE bad financial decisions in the future.Next car you buy, you'll have to buy it for whatever you can afford - even if it's just a StephenWeinstein

The insurance would not make a fortune on selling your car. They would lose money. Once a car is declared a total loss, they cannot sell it for more than approximately half of what it would otherwise be worth. The current cash value that they will apply towards your loan is more than what they will get by selling the car.

,000 POS car. And THEN, you won't be screwed for the next three years if it gets totalled.The cause of your problem is NOT the insurance company. THIS IS HOW IT WORKS. This is the coverage you bought. THAT'S the loan you bought. The CAUSE of your problem, is DEBT. If you'd paid cash for the car you could afford, the insurance payout would go to YOU, and you'd be pocketing both that money, AND the three loan payments you've already made . .. which WOULD be enough to buy another, used, 7 year old car that runs.

StephenWeinstein

The insurance would not make a fortune on selling your car. They would lose money. Once a car is declared a total loss, they cannot sell it for more than approximately half of what it would otherwise be worth. The current cash value that they will apply towards your loan is more than what they will get by selling the car.

acermill

Your understanding of this situation is incorrect. Your insurer will 'buy' your car from you for its current value, and will then sell it as 'salvaged goods'. Do NOT think they will make any money on this deal, since the car is damaged and will have a salvage title. The insurer will be fortunate to recoup half of what it paid to you.There is never a guarantee that a 'total loss payout' will cover your outstanding loan on the vehicle. That happens ALL the time.You can attempt to settle for less than the estimate to repair your car, but then YOU take the risk of not receiving sufficient money to have the car properly repaired. Frankly, I think your best option is to let them take the car and accept their offer.

Randy

They are looking to make money on a salvage sale. Do not sign the title over to them when they come asking. Your Insurance commissioner is usually in an insurance companies pocket so it would be best to go ahead and get an attorney. Act on the attorneys advice. Get a rental and keep those receipts and dates of use age. In most states an insurance company has to make a disposition on a claim within 90 days by law.. Next time you buy a car remember this incident. There is no prestige in the ownership of an expensive car just a lot of unnecessary debts and trouble. I know that you don't want the expense but you need this attorney immediately. Insurance companies are licensed fraud.

car253

You already have two very good answers. Your best choice is to give the insurance company your car and start over. If you are upside down on your loan that is where gap insurance would have helped you. This happens all the time.If you keep the car your asking for a headache. Let it go and start over. And, get a refund on those parts that you already ordered.

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