Geico is offering me about $8000 for a total loss on my 2005 4Runner, which has 160,000 miles, 4-wheel drive, and leather seats. But the comps they gave me are for cars with way more miles and no leather. I asked for more comps, and they sent me 10 more, but they were all old, out-of-state listings or sold cars, and none of them had leather.
I’ve always been the sole owner of the car, and I planned on driving it to 250,000 miles. It’s my favorite car, and 2005 was a great year for 4Runners. Georgia law says the comps should be within a 100-mile radius, and I found two newer models (1-3 years younger) with leather seats that were priced around $15,000 and $16,000.
So why is Geico lowballing me? What can I do to get a fair payout? My rental is due back tomorrow, and it feels like they’re dragging their feet. I’ve called several managers, but I haven’t heard back from anyone.
What’s the best way to make them offer a fair amount?
Keegan said:
Your car is not worth what you think it’s worth. Leather doesn’t add 8k.
It’s funny because when I look for a similar car, that’s the price I get. For example, I found a 2007 4Runner for $15,999 near me, with leather and 175,591 miles (10,000 more miles than mine). My 2005 has 160,000 miles and leather. Doesn’t that sound like a good comparison?
For sale price means nothing. You can ask for $100k for your car. It matters what it sells for after the dealership adds in their profit mark-up and fees. Plus, you’re quoting cars that are newer than yours. Again, leather doesn’t add 8k.
No, that’s not a good comp. 10k miles doesn’t impact the value much, but being 2 years older does. KBB puts it at $6k-$9k. $8k is probably about right. Leather adds maybe $50 to the value. You won’t find many comps in your area since it’s a 20-year-old vehicle (2005 models came out in 2004). I used to work as a total loss adjuster.
It’s okay for them to give you comps without leather. They would typically add a little extra value for it. About your comps… are those sales prices or list prices? If they’re list prices, remember that’s not what the car actually sold for. Also, dealer listings include markups and prep fees that insurance won’t cover. You can keep looking for actual sales numbers for similar cars. If leather is rare, you may need to expand your search radius. Or, you could hire a third-party appraiser, but you’d have to pay them out of pocket, and it’s not cheap. It may not change things with the insurance company, but it’s an option.
Then don’t accept it. Get a third-party valuation and accept that instead. When I was an ADA, the third-party usually came up with a lower number than I did, but it might be worth it. Leather doesn’t add more than $200-$300 to the car’s value. What was the car’s condition before the accident? Any cracks in the leather, paint chips, or rust?
@Wylie
This. See if your policy has a clause that allows you to challenge their offer. If so, get a third-party evaluation (which will cost a few hundred dollars). If your policy has this option, you can accept their lower offer, and then contest the payout. They’ll get a third-party estimate. I went through this early in 2024 with a car. The adjuster and I went back and forth, and their top offer was $18k. After getting a third-party estimate, I got $23.5k. It was worth it.
@Adi
Exactly. But OP might just have a sentimental attachment. It’s their favorite car, and they’ve had it for a while. Money doesn’t care about sentiment though.
Wylie said: @Adi
Exactly. But OP might just have a sentimental attachment. It’s their favorite car, and they’ve had it for a while. Money doesn’t care about sentiment though.
It’s not about sentiment. It’s low miles and in good condition. I’d love to have my car back because I don’t want to sit on some old, gross fabric seats; leather is way cleaner. I’d be much happier if this never happened.
“Once it’s paid out and gets to the scrap yard, it will get appraised again, and the adjuster will be in trouble if the values aren’t close. That’s why they won’t budge after a certain point.”
Can you explain this more? They got a third-party estimate already (to do a new valuation), and they took my car to the scrap yard on Monday. I didn’t know; they took it when we went to get the plates today, and it was gone.
@Blaine
All numbers are estimates, and I don’t mean to sound condescending. Here’s how it works: The adjuster gets all the details, calculates the car’s Actual Cash Value (ACV), and you get your check. Then the car goes to the yard, where they inspect it and pay Geico the ACV for it. The yard will use the car for parts or scrap. They moved your car because they don’t want to pay storage fees. They should’ve given you a chance to take your personal items and plates off before moving it.
This is why they offer ‘new car replacement’ options on insurance policies. They’ll buy you a replacement car at market value, rather than paying you for your old car’s value. If you have a car you can’t afford to replace but can afford a little more on your insurance, this option is worth considering. But it’s a waste of money for most used cars with low value. Better to save up for a replacement, knowing that all cars lose value over time.