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Insurance Company did not pay bank what car is worth...

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I got into a total loss accident in April 2013 in IL. After a long and agrivating prossess everything is being taken care of and paid off.... ALMOST.... Turns out the **** insurance company is saying the car value is about $2000 over what the insurance company paid out... Which means I am going to lose $2000.... I have had to continue making payments since time of loss, and now since the lack of $ that is going back to the bank I am going to still have to make yet another payment.

 

I want the insurance company to pay out the rest of what the car is worth so I don't have to take the hit for this.

 

I live in Utah now, and do not have the insurance company anymore, but the insurance company is in IL.

 

So if I am unable to get them to pay the rest of what the car is worth because they claim they will not pay the NADA value of the car, I want to sue them and get my money.

 

Would I be able to do this successfully...

Edited by FindLaw_AHK
This post has been edited to remove personal or identifying information. -Moderator

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So if I am unable to get them to pay the rest of what the car is worth because they claim they will not pay the NADA value of the car, I want to sue them and get my money.

 

Would I be able to do this successfully...

 

Probably not.

 

The first thing you have to understand is your policy. Read it carefully and you'll see that you have agreed not to sue your insurance company until and unless you have availed yourself of the remedies provided by the policy.

 

The main remedy is the Appraisal Clause. It's quite prominently titled under Conditions so you shouldn't have any trouble finding (or understanding) it.

 

Secondly, NADA is not the only used car value guide. There is KBB and Edmunds. I have used all three on very frequent occasions and have found that NADA is often much higher than the other two.

 

Besides that, the insurance industry has it's own vehicle pricing services like CCC Valuescope and ADP/Auto Source, both of which are notorious for lowballing total loss values.

 

When you invoke the Appraisal provision of your policy you'll have the opportunity to challenge the insurance company's valuation by providing documentary evidence from all of the value guides and from local advertising of comparable autos on Craigslist and Auto Trader.

 

Unfortunately, there is no way to predict the outcome and you might find that there is enough slop in car values and prices that an Appraisal umpire might not change the insurance company's valuation at all.

 

Also note that the decision of the Appraisal umpire is binding and final and eliminates your ability to sue unless you sue for bad faith which is very difficult to prove and quite costly to litigate.

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Guest FindLaw_Amir

Have you followed up with the insurance company to address this matter?

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