Automotive

Compensation for a Totalled Car

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[OP]
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Oct 20, 2005
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Compensation for a Totalled Car

Hi all,

My insurance adjuster (TDMM) recently informed me that our car has been totalled. We have something called the 5 Year Replacement Cost coverage, where they will pay out the value of a brand new car rather than the depreciated value.

I have a few items on the car that were damaged, like the license plates and some aftermarket accessories (grill, spoiler, etc), tint (from the dealership applied at the time of purchase) as well as BMW Wear and Tear Lease Waiver purchased. Do these things add to the total compensation? My adjuster has told me they will only pay out the cost of the replacement car, but I'm wondering why I would need to be at a loss for these items when I'm not at fault? Shouldn't insurance cover all of my financial losses?
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You'll have to look at the wording of the "replacement cost" coverage.
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Oct 6, 2010
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mmmken wrote: Hi all,

My insurance adjuster (TDMM) recently informed me that our car has been totalled. We have something called the 5 Year Replacement Cost coverage, where they will pay out the value of a brand new car rather than the depreciated value.

I have a few items on the car that were damaged, like the license plates and some aftermarket accessories (grill, spoiler, etc), tint (from the dealership applied at the time of purchase) as well as BMW Wear and Tear Lease Waiver purchased. Do these things add to the total compensation? My adjuster has told me they will only pay out the cost of the replacement car, but I'm wondering why I would need to be at a loss for these items when I'm not at fault? Shouldn't insurance cover all of my financial losses?
Yeah, there was a thread not too long ago where a poster had a similar question and had the wear/tear package compensated. I'm sure this would apply to you and the accessories as well. I'll see if I can find the thread. You can review it to see if it matches your situation.
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mmmken wrote: Hi all,

My insurance adjuster (TDMM) recently informed me that our car has been totalled. We have something called the 5 Year Replacement Cost coverage, where they will pay out the value of a brand new car rather than the depreciated value.

I have a few items on the car that were damaged, like the license plates and some aftermarket accessories (grill, spoiler, etc), tint (from the dealership applied at the time of purchase) as well as BMW Wear and Tear Lease Waiver purchased. Do these things add to the total compensation? My adjuster has told me they will only pay out the cost of the replacement car, but I'm wondering why I would need to be at a loss for these items when I'm not at fault? Shouldn't insurance cover all of my financial losses?
Did all these extras go on your bill of sale?

If so all you have to do is send the bill of sale in to your insurance and they should pay you the total on the bill. At least this is what happened with a family member when their new car was totaled.
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Sorry, I can't find it. I know I recently read one, but it might have been merged with the massive one here.

See if your 5 year replacement is referring this:

OPCF43

2.2 The most we will pay is the lowest of the following amounts:
ƒ The actual purchase price of the automobile and its equipment
ƒ The manufacturer’s suggested list price of the automobile and its equipment on the original date of
purchase, or
ƒ The cost of replacing the automobile with a new automobile of the same make and model, similarly
equipped.

These amounts include all applicable taxes.

The only issue is that if the price of the car is say $2000 cheaper this year than last year and you paid $30000, well, you'll only get $28000.
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I have the same coverage and also years of insurance adjusting experience. Don’t take what any TDMM adjuster tells you as gospel. They have very few seasoned adjusters. Most are young kids with minimal experience.

Check your wording as mine applies to Alberta although I doubt there would be much difference.

The wording on the endorsement is not very good as I’m sure theses are now written by monkeys (not intended to insult monkeys).

The wording does not appear to specifically address aftermarket equipment but states replacement will be with an automobile having “the same specifications and equipment” or if not available, “like kind and quality with similar equipment”.

Just present all your bills and they would need to include it.

I am going to guess that you will not be compensated for this BMW wear and tear waiver (unsure of the specifics of what this is) as it this is not equipment of the vehicle. It does sound like a bit of a warranty or likely that you would not be responsible for any wear and tear. I suspect that this is something that should be transferable to the new vehicle.
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koffey wrote: Sorry, I can't find it. I know I recently read one, but it might have been merged with the massive one here.

See if your 5 year replacement is referring this:

OPCF43

2.2 The most we will pay is the lowest of the following amounts:
ƒ The actual purchase price of the automobile and its equipment
ƒ The manufacturer’s suggested list price of the automobile and its equipment on the original date of
purchase, or
ƒ The cost of replacing the automobile with a new automobile of the same make and model, similarly
equipped.

These amounts include all applicable taxes.

The only issue is that if the price of the car is say $2000 cheaper this year than last year and you paid $30000, well, you'll only get $28000.
Yea, OP would be hooped if the endorsement reads automobile and equipment on the original date of purchase.

Regardless, OP would still be able to claim the depreciated value of the aftermarket equipment which shouldn’t be too bad on a late model vehicle.
[OP]
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koffey wrote: OPCF43
Thanks! Unfortunately, I got a massive discount off of MSRP (almost 15%), and there's no way for me to obtain a replacement vehicle at the same discount today. I probably don't want to disclose my Bill of Sale to the adjuster and just accept the current brand new value. I assume this is possible, right?
starchoice wrote: I am going to guess that you will not be compensated for this BMW wear and tear waiver (unsure of the specifics of what this is) as it this is not equipment of the vehicle. It does sound like a bit of a warranty or likely that you would not be responsible for any wear and tear. I suspect that this is something that should be transferable to the new vehicle.
Thanks! Yep, that's exactly what is is. We're planning on getting a car from a different manufacturer, so it would not be transferred to the new vehicle. It was purchased as part of the vehicle as an "option", but I guess I lose out if I don't present the Bill of Sale. Do you think it's not covered regardless, whether or not it's included in the car's Bill of Sale as an option?
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mmmken wrote: Thanks! Unfortunately, I got a massive discount off of MSRP (almost 15%), and there's no way for me to obtain a replacement vehicle at the same discount today. I probably don't want to disclose my Bill of Sale to the adjuster and just accept the current brand new value. I assume this is possible, right?



Thanks! Yep, that's exactly what is is. We're planning on getting a car from a different manufacturer, so it would not be transferred to the new vehicle. It was purchased as part of the vehicle as an "option", but I guess I lose out if I don't present the Bill of Sale. Do you think it's not covered regardless, whether or not it's included in the car's Bill of Sale as an option?
My educated guess is that it would not be covered regardless. I would hazard to say that this option may not even be an available option with another manufacturer.

The Bill of Sale will form part of the documentation for the claim. I would be shocked if they did not ask you for it. You would have to provide it if requested by the adjuster.

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