Insurance Coverage Questions Thread

[shadow247]

Hello guys. I'm a 20 year veteran of the collision repair industry, and I now work as an appraiser for one of the Big 5. I'm happy to answer any questions you might have about insurance coverage, terms, deductibles, GAP insurance, etc.

I'm licensed in all but 4 states in the US (Those 4 states require Residence to obtain, or preclude me from holding a license in another state), and have written claims on about 10,000 vehicles in 20 years.

I'll start with an easy misconception.

Full Coverage - This term in meaningless. There is no such thing. Period. Full Coverage generally refers to having Collision, Comprehensive, Uninsured Motorist Property/Bodily Injury, Rental, and Liability. Each and every one of these is a separate line item and separate charge on your overall premium. Each one carries different limits and exclusions to coverage.

There's also other endorsements you can add like OEM Parts Coverage, there are multiple levels of Rental Coverage, and there are multiple levels of Liability coverage as well.

 

[Fanatic1]

Guess I will start. Are there companies which you personally avoid or list you prefer? No matter how hard people can try to avoid filing a claim, eventually there is an an accident.

 

[Tucson4runner]

My runner was considered totaled after an accident a few years back. I wasn't at fault so when we negotiated my payment I was able to purchase my runner back and I had to get a salvage title for it. My question is, I have a lot of aftermarket parts installed on my runner, is it possible for me to get coverage for these and if so, is it worth it? Right now I have just minimum coverage. Thanks in advance!

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[Ogre75]

Like the guy mentioned above, what is the industry standard on compensation for aftermarket parts in collision coverage?

 

[shadow247]

Like the guy mentioned above, what is the industry standard on compensation for aftermarket parts in collision coverage?

Open up your policy and look at PART D - Coverage for your Auto.

If you see the words "Like, Kind, Quality" under the "Repairs to Your Auto" section, you will be getting aftermarket parts. Every company has different internal guidelines for the certifications and types of non-oem parts they allow for on their coverages. Bottom line is that 90% of vehicles out there qualify for Non-OEM parts to be used in the repair of the vehicle under the terms of the insurance policy. This also applies if you are a 3rd Party (someone else hit you and you are using their insurance). All states allow for some degree of Non-OEM parts usage, except for a few select states like Tennessee, where you get new OEM parts in the first 2 years from the Production Date (not the sale or first drive).

 

[shadow247]

Guess I will start. Are there companies which you personally avoid or list you prefer? No matter how hard people can try to avoid filing a claim, eventually there is an an accident.

I would avoid the companies that advertise Liability Only. Most of their insureds are not carrying collision and comprehensive coverage, so their adjusters are not used to dealing with repairs. I won't mention any companies by name, but there is one that is advertised by a certain famous basketball player that I would definitely avoid.

The cheapest companies are cheap for a reason.

The best policy I have ever seen was Chubb insurance - but I think they have a minimum net worth requirement to even be considered for a policy.

 

[Thebeastlives]

My runner was considered totaled after an accident a few years back. I wasn't at fault so when we negotiated my payment I was able to purchase my runner back and I had to get a salvage title for it. My question is, I have a lot of aftermarket parts installed on my runner, is it possible for me to get coverage for these and if so, is it worth it? Right now I have just minimum coverage. Thanks in advance!

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I have gotten every vehicle I've owned and modified covered for those modifications. The large insurance companies sometimes ask you to provide receipts for each modification and pictures. If you have minimum coverage and your mods exceed the value of your coverage then you are screwed. When you negotiate the pay out of your vehicle you should have proven that you vehicle was worth xx with your mods by showing proof with receipts and the sale price of other similarly equipped vehicles to the other party's insurance company. Your lawyer could have help with this since it wasn't your fault or you could have handled it on your own as well.

 

[Tucson4runner]

What if I purchased some of these mods second hand. Would a link to the msrp work?

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[shadow247]

What if I purchased some of these mods second hand. Would a link to the msrp work?

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You want to purchase Customization Coverage. Without receipts, you just need to document the mods with detailed photographs. It's really that simple. Most policies include 500 dollars of customization coverage in the basic policy. Some provide 0.

Customization Endorsements usually start at the $3000 range. If you have a lift, sleep system, armor, you are past 3k. They will give you full replacement value, not depreciation if you have the endorsement.

If you are hit by a 3rd party, they will give you the depreciated value of the mods based on them being on the vehicle at the time of original purchase, if you don't have receipts. That will be next to nothing on a 20 year old rig, since you would be hit for likley 80 percent depreciation. In this case you would just file with your own policy and collect the value of the mods.

 

[Venka93]

I got in a motorcycle accident about a year ago. It wasn’t my fault. I bought that motorcycle new for $7200 about a month prior to that. They paid me $5800 for it. Was there anything I could have done?

 

[shadow247]

I got in a motorcycle accident about a year ago. It wasn’t my fault. I bought that motorcycle new for $7200 about a month prior to that. They paid me $5800 for it. Was there anything I could have done?

New bikes are tricky, because of the immediate depreciation once you take ownership. In the end, if you can prove it's not possible to replace the bike with a similar used bike (because despite being new it's legally a used bike once it's titled in your name), you can usually negotiate for a higher payout based on ads for similar bikes and quotes from dealers.

That's why you want to add the 3k accessories coverage, even if all you have is some aftermarket footpegs and light bulbs. You will get the full 3k plus the bike if it's ever totalled.

 

[Payara Offroad]

Which would be the best company to insure accessories? How does it work if you have $5K plus in accessories? I have 2018 runner

 

[shadow247]

I can't give any advice on specific companies, but they all offer accessory or customization Endorsements. I worked a Motorcycle claim in a 100% Custom Harley. It was titled as a 1998, but had a 40k Customization Endorsement that covered the Frame,Bodywork,etc that was FARRR from stock. We ended up paying about 35k on that one.

 

[Akrkwk310]

Thank you for helping us out with insurance matter,
I am respectfully ask for your help. My FJ was T
Boned by AAA, my car is deemed total loss. AAA is lowballing by evaluating my cars value with 4 other non trail teams ( my car is Trail teams 1/1500) and i have full TRD exhaust, intake and skid plate installed within the year and they refuse to add them for evaluation. What would be my best approach with my case? They said my added parts are my preference and they said they dont have to pay for them. And they said they wont pay for 3rd party professional appraisal. Is this true? Any inputs will be appreciated

 

[bob3dsf]

You're replying to a thread started in 2020?

Insurance doesn't give a damn about bolt ons. They value from blue book etc...

They are gonna pay a "canned" value. It's unfair and Bullshit, just liked being forced into buying insurance is a scam and totalitarian fascist bullshit and you're basically under duress being forced to buy it upon threat of being ticket and huge fines, and the fact you live in the most fascist state in the union, you're even worse off.

I feel for you but not much you can do.

The guy is a new member, give him a break...however,

Insurance is a "totalitarian fascist scam?!" Oh please.... While there are bad insurance companies who are shysters, there are also really good companies. Insurance is absolutely a necessity to protect yourself and show common decency to everybody else.

I had a VERY minor bump up, like, less that full idle speed. But, my bad ass 4runner pushed in the rear bumper cover of a camry. Nobody hurt, the other driver was cool, at least when I spoke to him. We exchanged info. He called my company (USAA) before I had a free minute to call myself and let them know. Well, the other D-bag decided he thought he won the lottery and was complaining about neck pain, etc, etc... The agent was call to verify coverages, when they known what I have anyway but I guess to verify there was really an accident... I confirmed and told her the guy was full of it. My front bumper cover did not have any visible damage. If he was "injured" from that, he shouldn't even be walking out his front door every day.

I was hit by an uninsured motorist once, got paid, did the repairs myself and pocketed the difference. I got hit by a guy not paying attention. His insurance paid for a new door and new paint.

I've also seen what happens when there is a fatality and the at-fault driver is uninsured. That uninsured driver deserves to be hunted down... Driving while uninsured is a sure sign of a total lack of consideration for anybody else on the planet.

 

[bob3dsf]

"Oh please.... While there are bad insurance companies who are shysters, there are also really good companies".

Name one.

"Insurance is absolutely a necessity to protect yourself and show common decency to everybody else".

My insurance consists of a clip that holds 15 rounds and is readily available on my hip. Common decency is completely lacking in society today. Fact.
Insurance is still a SCAM!

"I was hit by an uninsured motorist once, got paid, did the repairs myself and pocketed the difference"

Case and point.

1. USAA.

2. Yes common decency is lacking. Drawing down on someone in an accident would not be considered decent by anyone's definition.

3. My example a scam? No way in hell. I changed my mind after a thorough assessment of the damage. The reason I pay my premiums is to be covered. I was covered. If I decide not to pay astronomical hourly shop rates when I can do it myself, that's my decision.

 

[Old Tanker]

I've been with USAA for 35 years and I have to say their service to us, service members have been lacking in recent years...

I've been with USAA since 1984. They are nowhere near what they used to be. Back then, they were an insurance company for active duty military officers. Claims were usually settled no questions asked. Rates were very competitive. Changes in 1996 and 2009 opened it to all service members, retirees, veterans, and their children. USAA hired industry professionals who opened it up and made it just like the rest of the industry. Other companies do a better job taking care of their own.

 

[bob3dsf]

Bummer to hear that you guys have seen a drop in service. My experience has been really good. Based on what I hear from others at work, around the neighborhood, etc. USAA still sounds top notch. Our auto rates are very good compared to friends and co-workers. They have been great on covering the few things I've needed covered, including a claim on our homeowner's insurance for hurricane related damage several years ago. I, for one, was glad it was available to enlisted and veterans when I joined.

 

[MeiFlous23]

just liked being forced into buying insurance is a scam and totalitarian fascist bullshit and you're basically under duress being forced to buy it upon threat of being ticket and huge fines,

Well... actually the law is technically just your ability to prove financial responsibility to other drivers on the road. It doesn't state you need to carry insurance, but that insurance can be used to prove financial responsibility. Compulsory financial responsibility means that when a dumbass rear ends you, more than likely they will have some way of compensating you.

Alternatives are
1. Post a cash deposit of $35,000 with the DMV
2. Secure and file a surety bond for $35,000 with the DMV

Both of these are retarded options, but if insurance didn't exist, that's what we'd all be stuck doing and having all of our assets on the line for the taking.

When you consider it that way, insurance seems like a pretty good deal.