In my previous post, I described how my family was affected when our car was stolen. In this post, I will walk you through the insurance claim woes I ran into while trying to keep it as short as possible..
When Aviva Canada made me an offer for my stolen car ($8426.41 Including HST) I felt it was a very low offer. After some research of my own I found it was selling anywhere between $8800 and $10,998 on AutoTrader without HST. The car I had was in excellent condition, so I figured I would refuse the offer and see what they came back with.
The second offer was $9040 including HST. I once again refused the offer and asked for the middle range of what the vehicle was worth. My whole train of thought is I should be able to buy the exact same vehicle with the cheque that the insurance company provides me. Even the lowest priced vehicle would be $9944 including HST.
After the second offer was made, I was told that the rental vehicle was due back 5 days later. I would still not have a cheque in my hand by then so I contacted the manager of the department to plead my case. My exact e-mail was:
A fair replacement market value for the vehicle is what should have been offered in the first place. There is only 2 cars identical for sale in my area within 50km of my home.
I would like to have the rental car period extended until I receive a settlement cheque. Please pass this along to the manager reviewing the claim as I feel this decision is unfair treatment and an attempt to make me accept a low settlement amount by forcing me to be without a vehicle until the claim is settled.
And this is the response I received:
Unfortunately we can not extend the rental. The appraiser had presented a value after doing research. Had there been an agreement a cheque would have been to you on August 6. The appraiser still feels this value is fair, however I have escalated it to management for one final review.
So here is my question,
When the appraiser is doing their research, what exactly is the criteria for the value based on?
I have paid roughly $25,000 in insurance premiums in the last 10 or 11 years and have never questioned my rates or had a late payment. When it is the insurance companies turn to pay (in this case, Aviva Canada) they low ball you hoping you accept the offer. After reviewing they make you a second offer of which you have no real choice to accept.
Had I chosen to dispute their final offer, I would have had to find an independent appraiser of my own to dispute their appraisal. The problem with this is you must pay your appraiser and cover the rental vehicle until the claim is settled, so in the end it is not beneficial to dispute with them any further.
In my case, my car was stolen. I would like to know exactly how my own appraiser would determine the value of the vehicle without having a vehicle to look at. I bet you my appraiser would be doing the same thing I did….looking on Auto Trader.
I would definitely say that this is a case of big company pushing little guy around.
This is just my small rant on the entire insurance process. This stolen vehicle ended up costing me over $2000 in under payment from Aviva Canada and the contents of the vehicle that were not worth claiming when the $500 deductible was taken into account.
I do encourage someone from the insurance industry to comment on this and help me understand why they must steal from the poor and give to the rich.