Auto Replacement Value | Third Party Claim

by Harold

On Feb. 20, 2013 my wife was involved in an auto accident. She was driving on Highway and was struck from behind.

My wife was following a road grader and driving approximately 35 miles per hour.

There were double guard railes with a bike path between them. There was no place for the grader to move over so my wife was following at a safe speed and distance.

A car came up behind her slammed on the brakes and slid into the back of our car pushing it towards the grader. this vehicle then separated from our car swerving into oncoming traffic so it swerved back into the side of our car, pushing it into the guard rail.

The woman that hit our car was cited by the Kenai Police Department. One month following the accident and after a second estimate, USAA ( insurance company of the driver that hit our car ) determined that our car was a total. We are in dispute over the value of our 2012 Subaru Forester with 12,000 miles on it. Door sticker price on our car is $24,500 and we had accessories with a value of $1900.00.

USAA states they do not pay for replacement value only what they determine is the value. Their research states our car is worth $21,300. They quoted comparables from the available market in Alaska. My research showed that none of the cars in their market research existed.

My research showed several vehicles similar to our Forester with prices ranging from the least $24995 to most expensive at $26,999 same style and equipment. Two Subaru dealers ( Fairbanks and Anchorage where we purchased our Forester) and our lending institution ( loan on the Forester ) show the value of our specific Subaru at $25,850.00, which is average retail.

USAA refuses to pay above their offered price. At their offer, I would have to take out a loan for over $5,000 to replace my Forester with a 2012 auto with greater mileage, if I can locate one. I asked for $23,995 plus $595.00 for license/title/registration and dealer prep/document fees for a total of $24,590.00.

I will still have to take out a loan for approximately $1500 to purchase a used 2012 Forester to replace my car. Am I entitled to that replacement cost from USAA. This is the 55th day since the accident and we have no transportation.


Answer to Auto Replacement Value

Hello Harold,

You are asking about a total loss value. They need to take into account your research and values. You have to provide comps, so do not let them still give you less than the car is worth.

It is true that they don't owe for replacement value, but they do owe for fair market value. The evaluation of that value is based on local vehicles very similar to yours. See our section on total loss.

You may want to consider a public adjuster to evaluate the value of the vehicle for you.

Good Luck.