Feel good story of the day...

[Danno]

Tom,

When your own insurance company shoots you a take-it-or-leave-it deal like that, you have a couple of options in your corner.

Plan A - You can get two or three independent estimates from reputable, quality shops ~ especially a Jaguar dealer's body shop and a shop that specializes in high-line exotic cars. The estimates will be pricy, but will show what a good shop would need to restore your Jag to pre-collision condition. Then you present those estimates to your insurance company and demand they honor your estimates by either (a) authorizing one of your shops to make the repairs, or, by paying you cash equal to the average of your estimates or the lesser of your two estimates. They'll either accept your proposal ~ usually, if there's not a lot of difference between yours and theirs ~ or you go to Plan B or Plan C.

Plan B - Most insurance policies have an arbitration clause for situations where you and your insurance company disagree on physical damage settlement. After Plan A fails to resolve it, invoke Plan B. The arbitrator's decision is binding on both parties. Advantage: the arbitrator may rule in your favor or may order a straight 50-50 compromise and it's a LOT cheaper than suing. Disadvantage: you voluntarily surrender the right to sue in order to enter arbitration. Both parties pay 1/2 the cost of arbitration.

Plan C - If Plan A fails and you didn't invoke Plan B, then you can go to Plan C: sue 'em. Your estimates now loom large. Advantage: You MIGHT win. Disadvantage: Your Insurance company will dig in, and they have deep, deep pockets to finance busloads of attorneys to fight you. Few private attorneys will take this kind of case on your behalf because there are no punitive damages available from which they can take percentage contingency fees; so, they'll require a retainer from you and they'll bill by the hour, and their fees will likely outstrip the value of your suit. That's the real downside of suing over property damage - there's no big money to be made for the shysters. And, you could lose and be required to pay your insurance company's legal fees and costs. But if you win, you can ask the court to require your insurance company to pay your legal fees and costs. Or, if the jury splits the differences, the court could order each party to pay its own legal fees and costs.

By the way, Tom, there is also a Plan D. If you feel your insurance company did not treat you fairly, you can file a complaint with your state's insurance commissioner. Funny how many mountains that can often move.

None of the above is legal advice, nor should it be considered legal advice. It's just hypothetical discussion based on years of practiced observation and critical thinking and experience.

Edited June 27, 2014 by Danno

[Tom Geiger]

Thanks Dan for very sage advise, only 2.5 yrs have transpired so that ship has sailed for me. I do believe I may have forced them to cough up a few more dollars, and getting higher dollar estimates would only strengthen their case since they had totalled me out at $5000 and their high estimate was already $6500. In fact their estimator told me they'd do that, and said for $5000 he'd buy the car himself and fix it! So he was on my side and did what he could in the comments section.

I did invoke Plan E though.. this was the insurance company of choice with my then employer. I did tell insurance company that I'd report my disatisfaction back to the employer. They told me to go ahead! Little did they know I was far enough up the food chain to have them removed. And I did. That no doubt cost them a lot more money than treating me fairly.