[alfa] insurance values and approaches

["Watry, Andrew (LNG-SFR)" <Andrew.Watry@xxxxxxxxxxxxxx>]

Dealing with insurance companies is one of the toughest things you can face.
The resources of an individual are nothing compared to a large corporation,
organized to make as much money as possible, and disinclined to give any of
it away.  In my few insurance dealings, some good, some bad, I found these
points to be useful:

* Be persistent.  Keep being persistent.  The more time and effort it takes
them to deal with you, the more it's going to cost them, and the sooner they
may realize it's cheaper to pay up.
* Document everything. Take notes, pictures, etc.
* Insurance law varies a fair amount from state to state.  So general Digest
statements about replacement value, the need to give you a loaner car, etc.,
are not necessarily useful where you are located.
* The insurance company will rely on what's in the policy, the contents of
which may surprise you. Read it.  For example, "replacement value" does not
necessarily mean replacement value.  It often includes a depreciation
deduction, which can amount to more than you expect.  Common sense is not
how the insurance industry works.
* I've heard bad things about dealing with State Farm.  Then again, I've
heard bad things about almost every insurance company.  The point being, if
you're having a hassle with the other party's insurance company, depending
on the circumstances, you may want to involve your insurance company, and
their legal department.  While insurance companies have a duty to defend you
if you're at fault, there isn't necessarily a duty if you're not.  But you
certainly want to make use of any free resources you can.  Also, consult an
independent lawyer, if you can afford it, to get an unbiased opinion on the
insurance ramifications in your state of your circumstances, and especially
what your company should be doing for you, if anything.
* For oddball older cars like Alfas, it's often the case that the repair
cost will exceed the fair market value of the car. In that case, I'm sure a
typical non-classic policy allows the insurer to total the car and pay you
that value.  As mentioned, lots of comparable documentation of sales, and
working with the insurer to bring the FMV up, and the body shop to bring the
repair cost down, can make the difference between getting your car fixed or
not.  I helped a fellow Berlina owner a couple years ago in this way, and we
managed to convince the insurer eventually to pay for more than $4000 repair
on a 2000 Berlina.  This is where persistence most pays off.  We had several
comparable sales from ebay, classifed ads, the Berlina Register, and our own
personal knowledge.  The insurance company is not necessarily required to
care how much you love your car and how much you've spent on it over the
years.
* Be a good consumer.  Bone up as much as you can on your rights and the
insurer's duties.  Again, be persistent.  Also, if you are dealing with your
own insurance company and insure a lot of things with them, let them know
you'll be happy to take your business elsewhere if they won't help you out.
* Insurers will put up a hell of a lot of roadblocks, designed to wear you
down, make you knuckle under, and go away.  Being cordial, informed, and a
persistent pain in the ass can in the right case eventually lead to a good
result.  It can take many months though.

Andrew Watry
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