insurance company's offer for total loss

[zirkel]

Hi! Nabangga yung 2009 honda jazz ko. (see story here http://www.pinoyexchange.com/forums/...0#post72043070 )

nung una, gusto ng insurance ipagawa. pero based on advice of pexers, wag na lang. ipa total loss ko na lang daw. nag request ako for total loss and mabilis ang reply ng insurance company. pumayag naman sila.

their offer is this:
estimated FMV : P366,000.00
less: policy deductible: P2000
net liability: P364,000

so yan ang offer ng insurance company. the insured value of the car is P426,465.00. okay na ba yang offer nila na P364k? hindi ba masyado malaki depreciation considering na august 28 lang nakuha yung insurance?

or okay na ba yang offer? wala na kong dapat ireklamo and process everything na?

[zirkel]

Hi! Nabangga yung 2009 honda jazz ko. (see story here http://tsikot.com/forums/car-insuran...1/#post2478864 )

nung una, gusto ng insurance ipagawa. pero based on advice of pexers, wag na lang. ipa total loss ko na lang daw. nag request ako for total loss and mabilis ang reply ng insurance company. pumayag naman sila.

their offer is this:
estimated FMV : P366,000.00
less: policy deductible: P2000
net liability: P364,000

so yan ang offer ng insurance company. the insured value of the car is P426,465.00. okay na ba yang offer nila na P364k? hindi ba masyado malaki depreciation considering na august 28 lang nakuha yung insurance?

or okay na ba yang offer? wala na kong dapat ireklamo and process everything na?

[1D4LV]

imho, FMV for a 2009 Jazz is around 450k...
masyadong mababa.

- - - - - - - - - - - - - - - - - - - - - -

imho, FMV for a 2009 Jazz is around 450k...
masyadong mababa.

[zirkel]

imho, FMV for a 2009 Jazz is around 450k...
masyadong mababa.

- - - - - - - - - - - - - - - - - - - - - -

imho, FMV for a 2009 Jazz is around 450k...
masyadong mababa.

i understand na mga 450k nga siguro FMV ng 2009 Jazz now. except that ang insured value ko lang kasi is 420k

[1D4LV]

i understand na mga 450k nga siguro FMV ng 2009 Jazz now. except that ang insured value ko lang kasi is 420k

if FMV is around that, then they should pay for the entire face amount of the insurance less deductibles...

- - - - - - - - - - - - - - - - - - - - - -

i understand na mga 450k nga siguro FMV ng 2009 Jazz now. except that ang insured value ko lang kasi is 420k

if FMV is around that, then they should pay for the entire face amount of the insurance less deductibles...

[SkyFlakes88]

Bale under insured po kasi yun jazz nyo sir against sa FMV.but you can deny their offer and mag counter offer po kayo.nasa negotiating table po kayo with the ins.co.kasi.it is your right to offer what you feel is the fair price for you sir.

[SkyFlakes88]

Basta po reasonable yun price nyo. That is one mistake on the owners part to under insure the car po. Maybe you could negotiate with 400k?just try to ask for a better price sir.

[Drivesafe]

Question po: para saan pa yung face value ng insurance kung ang insurer ay magooffer lang din ng mas mababa?

[vvti2.0]

Itinanung ko rin yan sa Carter Ping-An.

Yung face value ng sasakyan mo sa insurance ay hindi ang makukuha mo kapag nag claim ka ng total loss, kahit pa after a day na nagfile ka ng insurance naka total wreck sasakyan mo. Automatic daw mababawasan yan ng depreciation for the current year.

Say ang depreciation mo per year ay 100k, automatic yung face value mo, less 100k yan.

- - - - - - - - - - - - - - - - - - - - - -

Itinanung ko rin yan sa Carter Ping-An.

Yung face value ng sasakyan mo sa insurance ay hindi ang makukuha mo kapag nag claim ka ng total loss, kahit pa after a day na nagfile ka ng insurance naka total wreck sasakyan mo. Automatic daw mababawasan yan ng depreciation for the current year.

Say ang depreciation mo per year ay 100k, automatic yung face value mo, less 100k yan.

[SkyFlakes88]

Pag po under insured yun kotse nyo sir ex. Market value nya is 300k tapos naka insured po sa 250k pag total loss po malamang po offer lang is 200k kasi nga po yun difference na 50k i adjust nila yun sa offer and mahirap nyo i justify yun value nang kotse nyo.

Whereas kung fully insured kayo kung ano po yun market value dun kayo entitled sa price na yun but still usually mag ooffer pa din sila nang mas mababa. You can counter offer naman dun sa tinggin nyo na fair value para sa inyo sir.

In case d po magkasundo pwede din na maghanap kayo nang same model at variant and ask the co.to buy the unit for you.in replacement dun sa na total loss na unit nyo po

[Drivesafe]

Thanks for the response.

Ang pinagtataka ko pa rin, di ba nung nagbigay sila ng proposal nung insurance, yung face value nun ay based na din sa market value nung kotse, adjusted to devaluation na agad. And thats where they base your premium. Tapos kapag total loss, they further deduct devaluation again? So youre always paying for higher than what is actually being covered? Parang di ata dapat ganun?

[SkyFlakes88]

Thanks for the response.

Ang pinagtataka ko pa rin, di ba nung nagbigay sila ng proposal nung insurance, yung face value nun ay based na din sa market value nung kotse, adjusted to devaluation na agad. And thats where they base your premium. Tapos kapag total loss, they further deduct devaluation again? So youre always paying for higher than what is actually being covered? Parang di ata dapat ganun?

Yes sir! At the time po na nag propose sila yun po ang fair market value nang kotse nyo. Usually po yun price nang market value every year po ito bumababa. E d naman po tayo sure kung magkakaroon nang total loss na claim sir e for that particular year. Kaya at the time po nang claim sa total loss dun po ulit titignan yun fair market value namg kotse nyo saka sila mag ooffer sa inyo. Normal po na mas mababa talaga initial offer. Baka kasi makalusot sila at makatipid. Yan na po yun sinasabi kong negotiation ninyo sa price ang kotse nyo.until magkasundo po kayong dalawa.

[RomeoAlpha]

Thanks for the response.

Ang pinagtataka ko pa rin, di ba nung nagbigay sila ng proposal nung insurance, yung face value nun ay based na din sa market value nung kotse, adjusted to devaluation na agad. And thats where they base your premium. Tapos kapag total loss, they further deduct devaluation again? So youre always paying for higher than what is actually being covered? Parang di ata dapat ganun?

same thing happened to my friends 2010 City, after 1 year habang nakapark, nabangga ng ginagwang truck. pasok sa garahe nila truck kaya nasandwhich yung kotse.

technically the insurer will throw BS stuff like depreciation and etc.

pero IMHO, you can insists and negotiate that the FMV of the car is the insured amount. di sila dapat nagdedepreciate ng month on month kasi ang coverage mo eh 1 whole year. at ang depreciation eh 1 whole year din.

so ika nga nila, negosyo eh, dun sila sa makakalamang sila. kaya ikaw wag ka palamang.

by the way, nakuha ng kaibigan ko ung settlement na 90% plus usual 2k to 3k participation fee from the amount insured.

ayun, bumili ng nissan cube at pinang dagdag sa negosyo ibang portion ng pera.

- - - - - - - - - - - - - - - - - - - - - -

Thanks for the response.

Ang pinagtataka ko pa rin, di ba nung nagbigay sila ng proposal nung insurance, yung face value nun ay based na din sa market value nung kotse, adjusted to devaluation na agad. And thats where they base your premium. Tapos kapag total loss, they further deduct devaluation again? So youre always paying for higher than what is actually being covered? Parang di ata dapat ganun?

same thing happened to my friends 2010 City, after 1 year habang nakapark, nabangga ng ginagwang truck. pasok sa garahe nila truck kaya nasandwhich yung kotse.

technically the insurer will throw BS stuff like depreciation and etc.

pero IMHO, you can insists and negotiate that the FMV of the car is the insured amount. di sila dapat nagdedepreciate ng month on month kasi ang coverage mo eh 1 whole year. at ang depreciation eh 1 whole year din.

so ika nga nila, negosyo eh, dun sila sa makakalamang sila. kaya ikaw wag ka palamang.

by the way, nakuha ng kaibigan ko ung settlement na 90% plus usual 2k to 3k participation fee from the amount insured.

ayun, bumili ng nissan cube at pinang dagdag sa negosyo ibang portion ng pera.

[SkyFlakes88]

same thing happened to my friends 2010 City, after 1 year habang nakapark, nabangga ng ginagwang truck. pasok sa garahe nila truck kaya nasandwhich yung kotse.

technically the insurer will throw BS stuff like depreciation and etc.

pero IMHO, you can insists and negotiate that the FMV of the car is the insured amount. di sila dapat nagdedepreciate ng month on month kasi ang coverage mo eh 1 whole year. at ang depreciation eh 1 whole year din.

so ika nga nila, negosyo eh, dun sila sa makakalamang sila. kaya ikaw wag ka palamang.

by the way, nakuha ng kaibigan ko ung settlement na 90% plus usual 2k to 3k participation fee from the amount insured.

ayun, bumili ng nissan cube at pinang dagdag sa negosyo ibang portion ng pera.

- - - - - - - - - - - - - - - - - - - - - -



same thing happened to my friends 2010 City, after 1 year habang nakapark, nabangga ng ginagwang truck. pasok sa garahe nila truck kaya nasandwhich yung kotse.

technically the insurer will throw BS stuff like depreciation and etc.

pero IMHO, you can insists and negotiate that the FMV of the car is the insured amount. di sila dapat nagdedepreciate ng month on month kasi ang coverage mo eh 1 whole year. at ang depreciation eh 1 whole year din.

so ika nga nila, negosyo eh, dun sila sa makakalamang sila. kaya ikaw wag ka palamang.

by the way, nakuha ng kaibigan ko ung settlement na 90% plus usual 2k to 3k participation fee from the amount insured.

ayun, bumili ng nissan cube at pinang dagdag sa negosyo ibang portion ng pera.

Kasi po sir hindi naman po talaga ma project yun price every month or daily. Ganun po talaga sir. Being fully insured po is yun FMV nang kotse at the time of claim.

[SkyFlakes88]

As always po pala yun mga participation fees apply po. Babawasan po yun sa settlement nyo. Which is just about 3,500 lang po sir

[machine.pistol]

Car insurance to cover own damage is a form of property insurance. The insurer will cover what is lost and not what the value of insurance is. So if the insurer thinks the value of your car at the time of loss is 200k although your insurance cover is up to 250k, the insurer will only pay you 200k. But of course, the value of your car can be negotiated with the insurer. It might revise its initial valuation to, say, 220k during negotiation. If you and insurer will agree on that amount, that will be the payout. If you really believe that the value is as covered or 250k and the insurer insists on its revised offer, then you either accept or reject, in which case you can go to the a Insurance Commission to litigate the value of your car. By the time the decision comes out or in case of appeals the final decision comes out, what would be 220k or 250k might only be 150k.

[SkyFlakes88]

Pag under insured po talagang the insurance co. Will not pay more than the amt.insured mostly likely lesser talaga ooffer nila kasi technically yun percentage nang pagka under insured is also taken into consideration.

If you were the insurer would you pay full amt.on a total loss kung yun unit is under insured? Thing is you undervalued you own car by paying less premium so you also shoulder the risk of it in case a total loss is declared. Not sure if a 40% damage could be declared as total loss. Yan ang advantage nang co. sa under insured units. If you go to i.c. Most probably you will loose. Kasi nga under insured po tayo.

[machine.pistol]

I don't understand what you mean by "underinsured." You can insure a car you acquired for 1 million for say 1.5 million and pay the corresponding premium for that insured value, say, 30,000. But if you have a total loss (assuming without depreciation), then the insurer will pay you 1 million less deductible (because that is your loss and the insured covered you for that loss). The insurer will not pay you 1.5 million because that is not the value of your loss.

You can also choose to insure your 1 million car for only 500,000 and pay only 10,000 in premiums. If you have a total loss (assuming without depreciation), the insurer will pay you only up to 500,000 because that's the maximum amount of coverage (of course, less deductible).

Property insurance is different from life insurance where, if you believe your life is worth 2 million, then you pay the corresponding premium and if you die, your heirs will get 2 million. You can even get a 10 million insurance (but be prepared to pay the corresponding premium for that) and the insurer will pay your heirs 10 million.

The concept of deductible or participation in property insurance is that the insurer, while it is willing to cover you for loss arising from the risk insured against, cannot be totally responsible for your loss. There is somewhat a small amount of responsibility that may be attributed to you. This is called sharing of risks. In the Philippines, we are used to deductibles on car insurance on a fixed amount say 5,000, 3,000 and 2,000. In the event of a loss, the insurer will make a payout only if you shoulder your share of liability, which is by assuming the amount of deductible.

[maki mi]

Following this line of reasoning, will any insurance company accept insurance amounting to 50% of the fair market value of your vehicle? Like say my unit has an fmv of 750k, can I insure it for 375k only? My purpose being to get covered for accident repairs only and I am willing to assume the risk of getting less in case my car gets jacked or a total wreck?

I don't understand what you mean by "underinsured." You can insure a car you acquired for 1 million for say 1.5 million and pay the corresponding premium for that insured value, say, 30,000. But if you have a total loss (assuming without depreciation), then the insurer will pay you 1 million less deductible (because that is your loss and the insured covered you for that loss). The insurer will not pay you 1.5 million because that is not the value of your loss.

You can also choose to insure your 1 million car for only 500,000 and pay only 10,000 in premiums. If you have a total loss (assuming without depreciation), the insurer will pay you only up to 500,000 because that's the maximum amount of coverage (of course, less deductible).

Property insurance is different from life insurance where, if you believe your life is worth 2 million, then you pay the corresponding premium and if you die, your heirs will get 2 million. You can even get a 10 million insurance (but be prepared to pay the corresponding premium for that) and the insurer will pay your heirs 10 million.

The concept of deductible or participation in property insurance is that the insurer, while it is willing to cover you for loss arising from the risk insured against, cannot be totally responsible for your loss. There is somewhat a small amount of responsibility that may be attributed to you. This is called sharing of risks. In the Philippines, we are used to deductibles on car insurance on a fixed amount say 5,000, 3,000 and 2,000. In the event of a loss, the insurer will make a payout only if you shoulder your share of liability, which is by assuming the amount of deductible.

[SkyFlakes88]

Assuming that your cars fair market value is 1M and you insured your car for 1.5M that is over insured sir. Unless you have special arrangements with the insurer on why it went up to 1.5M? Maybe it's bullet proof or any special add ons on the car that made it cost more? If that's the case then it can be insured as such with approval of the insurer. And in case there is a total loss you will be paid at the current fair market value of the car including the declared add ons less the usual participations that comes with it