Hi everyone,
Last year, I bought my Ram 1500 truck with an employee discount, paying almost 20% less than the retail price. Unfortunately, my truck was stolen a month ago, and now my insurance is giving me a hard time about the settlement. They say they’ll only pay me what I paid for the truck, even though the market value is much higher now.
I was also laid off, so I can’t get another employee discount, and since I financed the truck, I’m only getting back my down payment and the payments I’ve made. This seems unfair because I can’t buy a new truck at the same price since the MSRP has gone up a lot, and I probably won’t qualify for a new loan because I’m unemployed.
I’ve always made my payments on time and saved up for situations like this. Is there any way I can argue for a higher settlement? I think just because I paid under market value doesn’t mean I should get a settlement that’s also under market value since my insurance payments are based on the truck’s value.
I’m 20 years old and worked hard to afford a nice truck, so this situation is really tough for me. Do I have a chance to fight for a higher settlement?
Thanks for your help.
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The insurance company doesn’t consider the price you paid for your vehicle. Instead, they only pay what they determine to be the Actual Cash Value (market value) of the vehicle at the time of loss, or what they believe a similar vehicle could be purchased for.
Your settlement will be based solely on the model year of your Dodge Ram, so if you have a 2022 model, that is the price they will reference.
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Exactly. I had an old car that I received from my dad. I paid $2,500 for it, and when it was totaled, I received a check for $4,500.
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The OP is claiming they will cover an unusual portion of his down payment along with the payments? I’ve never encountered that before.
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Absolutely, you can negotiate, but you’ll need to present solid evidence to support your claim. Simply stating that you believe it’s worth a certain amount isn’t enough. Based on what you’ve shared, it doesn’t seem like you have that evidence.
Most companies utilize CCC, which verifies the VIN. You are entitled to the actual cash value (ACV) of your vehicle, not the replacement value.
Do you own the vehicle outright, or are you still financing it?
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I can’t comment on other states, but in New York, there’s a 180-day rule: if a vehicle is purchased from a dealer and a total loss occurs within 180 days, you cannot receive a settlement that exceeds the purchase price. It’s possible that your state has a similar regulation.
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It varies by location. In some states, you can receive a settlement for the purchase price if the loss occurs within a specific timeframe after buying the item.
Ultimately, all aspects of the claims process are governed by state laws, so your options may be limited.
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Some more affordable plans might also provide payouts based on KBB. Additionally, certain policies will cover the replacement cost and compare it to similar vehicles available in your market.
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This has to be nonsense. How could the insurance company possibly know what you paid?
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Consider hiring an independent appraiser. It costs around $500, but they can negotiate your settlement on your behalf. The insurance company may be trying to take advantage of you. The settlement is typically based on the car’s value, not the amount you originally paid for it.
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It varies based on the country you reside in.
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Check the prices of similar vehicles of the same age. While you can’t expect to get a new truck, if the insurance isn’t offering enough to replace what was stolen, you might be able to demonstrate that their offer won’t cover a comparable replacement. “Comparable” refers to vehicles that are the same year, make, model, and have similar mileage. Keep in mind that regulations can vary by state. For example, in Illinois, you could ask the insurance company to locate a comparable vehicle for the price they’re offering. However, be aware that sales tax, documentation fees, and deductibles are typically your responsibility.