Establishing Value for Insurance Purposes

[coachmac]

Happy Holidays all!

My son wrecked our Explorer (sigh - he should have killed the dog) by sliding off the road into a 2 foot deep ditch about 18 inches from our substandard road surfaces here in South Carolina's upstate. Once the right front wheel dropped into the ditch the steering arm broke off from the steering box and he and his brother were merely along for the ride. He’s been driving for 4 years and it was his first wreck - poor kid. Thank God no one was hurt.

Now we are trying to establish value with a lowballing insurance adjuster. The 93 XL was fully loaded with every option Ford offered (plus privacy glass) except a leaking roof hole (i.e., Moon Roof - and don't nag I have a ragtop 5.0 Mustang and a t-toped 280zx if I want to muss my wife's hair).

The paint still shines except for the now damaged right fender and door. Except for those and a bent front bumper from hitting the berm which was 2 inches from the ditch the truck is/was in beautiful shape. Well, the driver's seat leather is a little worn from my butt sliding in and out for so many years but big deal. Still the adjuster totaled the truck and wants us to accept less than $5,000.00 for it.

Now in my youth I was a commissioned mechanic and the mechanicals are/were in top shape. New brake components from lines to pads/shoes six months ago, new thrust bushings (such fun cutting the rivets- so happy with new bolts, locks, flats, & nuts), new muffler and tailpipe, K&N filter system, resealed engine including rear main and oil pan gaskets, new alternator and battery last year, and new Michelins on the back.

The reason for his low offer - age and mileage. Plus the floor was dirty - The kids had been driving through friends pastures lately and hadn't cleaned it up yet. This truck was our commuter for most of its life and drove 100 highway miles a day from our home to Greenville and back five days a week and made semi-annual trips to the coast and Ohio as well; so it has 260,000 miles on it. But it started and drove every day and had hot heat and cold air upon request plus always got 65,000 to 75,000 miles on its Michelins.

He used the Autotrader.com website to fix the value so I checked it myself and I think I see why the offer is too low – a lot of the trucks listed there are 4x2s not 4x4s like ours. Autoweb.com was similarly lacking in 4x4s for comparison. I suppose this is because most of us Explorer owners with 4x4s don't sell them or sell to private parties. I certainly had no intention to sell our Explorer and frankly planned to let the 10 year old have it when he starts driving - my Datsun is 22 years old and my LX5.0 is 13 years old after all (my wife's Focus is a 2001 bought just before the 2003s came out - I buy cheap!).

The adjuster needs some help setting our value (okay - I need some help so I don't have to go through arbitration just to get my proper valuation). Anybody got a good website for me to send him to? The Blue, Black, Gold and NADA books average retail at $5,100 but they really don't take all the options and mechanical work into account.

Finally, I think this Website ought to consider helping us set proper value for well kept or modified Explorers to avoid such problems for folks in the future by building a solid database supported by fact (actually selling price, actual parts and labor costs for mods, etc.) and expert opinion (we are experts on the value of our own and similar vehicles having acquired experience in buying, selling, repairing and modifying our own equipment over the years).

I may “buy” the Explorer back for the $970.00 salvage value, does anyone else think that’s a good idea or am I just fixated on my second most favorite truck (My Kenworth is still tops even though I retired and sold it in ’99.)?

Appreciate any help – Keep ‘em rolling!

 

[Alec]

I say accept a $5200-5500 check and buy it back. You can probably fix that body damage for under $1000 and still come out ahead. Just make sure the frame and other vital parts are ok.

Unfortunately car values are mostly based upon age and mileage; options and care have little to do with a vehicle's value once it is over 7-8 years old.

Glad everyone is ok. And as long as the vehicle is mechanically sound and drivable you'll most likely come out ahead.

 

[coachmac]

Thanks Alec.

You're probably right - but I'm damn sure I would never have accepted even $6,000.00 for it before the wreck. So the idea of only getting him up $4-500.00 to the sum you suggest is appropriate kind of sticks in my craw - no offense.

I do think I will probably retain the Explorer and take the $970.00 hit to do so because, after I install a new steering box and either pump up the tire or buy 2 more new Michelins, the vehicle is safe and driveable if a tad ugly from the drivers side and front. I will try to find out how much a new front bumper, steering box and repairs to the right fender and right front door, and re-hanging the fiberglass domaflachies under the right side will cost - don't want to let fellow Explorer owners down with an ugly truck running around!

 

[Alec]

This may be the perfect opportunity to get Perry's fiberglass fenders, a bit of lift, and some larger tires CoryL is in Kentucky and I'm sure he could fab you up a great custom front bumper, too

<whispers: bigger, bigger, bigger>

EDIT: In case you don't know, Perry's Fab n Fiber has a complete front end conversion kit to make yours look like a 95-97. It and the fenders are comparable in price to a new stock front end, just the newer headlights are a bit pricey. This is the kit that Rick has on his Giant Pumpkin.

 

[Cartman]

I agree with Alec, the adjuster isn't going to take into account the condition of the truck.

Since should have a willing helper (your kid) and you know what you're doing with mechanics i'd take the $5000 and fix it. To keep the costs down you might be able to find some of the parts at a junk yard.

On my 96 sport a new bumper is costing $475 can (about $320 US), new front fender $340can ($200 US) OUCH!!! but insurance is covering it

 

[Bluedog]

Not to be too negative but....
$5000 isn't a bad figure for a 93 w/ 260k on it.
Values are based on what it would cost to replace the vehicle. The only way to get more is to show receipts for recent work done or new parts purchased,etc.
Wholesale is about $2700, so take the $ and buy a newer,lower mileage truck!
At least no one was hurt.........

 

[MONMIX]

I have brought many totaled vehicles back to life.
It seem to me with your Ex I would would try to do so.
You just duped a bunch of cash into the motor and from your description it doesn't sound too bad.

 

[Bill Kemp]

If that adjuster cant explain, with comaprisons, why he paid you 500 or more above value for your X he is in trouble with his boss.
You might want to get some written statements from some used car dealers as to the value. The more you can give him to justify the value the easier it is for all concerned.
Good luck...