So my mother got into an accident around a month ago in her BMW X5 2003 after she rear ended someone else. I didn't see the damage but apparently it was pretty bad. The BMW at first said that because the engine didn't move and wasn't damaged, the repair would cost around $8000. However, they noticed that the engine was indeed damaged, jacking the price up to over $20,000. Our insurance company, Traveler's, told my parents that if they sold the car, they would get around $13,000 for the car, which was 70% of the resale value. Or they could have the car fixed for the price of over $20,000. My parents however believe that they should receive the $19,000 resale price, which is still cheaper than the repair price. She had around 60,000 miles on the BMW X5 2003. She talked to the insurance agent and told him that either they give her the full resale price or pay for the repair of the car, which if they choose the latter, would result in a greater loss for the insurance company. The 70% of the resale value is due to some law or policy. Any suggestions from the experienced group of adults around this forum would greatly be appreciated. What do you guys think will eventually be the action of the insurance company???

If my parents get the $19,000 in resale, she will probably get the MB ML450 next for lease.

 

Insurance companies value cars by how much similar cars with similar mileage are being sold in your area. With our country in a recession, it's really hard to sell any kind of car (sedan or truck, new or used) nowadays, so I wouldn't be surprised if X5's were being moved off for only $13,000.

IMO I don't think the insurance company will pay any more than $15,000.

 

copy 3 auto trader ads, send to insurance company and thats how in the past I've known people to get insurance to pony up more money. I would NOT want that wreck fixed, just buy a new car, with the economy in the toilet there are some real deals on luxury especially cars these days.

 

Quickly read that but they never factor in how much you lose when you try to sell a wrecked car.

When one of my gs's was smoked yeah they fixed it but when I sold it I lost a ton of money on it because it was hit before.

Calc that into your plan because if you get it fixed the resale is not going to be what you think it is.

 

My 2 cents.

Insurance companies will low-ball you. You can negotiate with them but you need to check your policy (fine print) to see if the 70% of value is their right or just a negotiating tactic.

Resale value on x5 is terrible as the economy sucks. I see 2001/02 x5's with 60-80K miles list for 12K-15K private party sales value.

Money aside, a 20K repair is major damage. I doubt the car will ever drive the same again. Regardless of what the insurance company does, I say put your parents in a different car (another x5 or maybe a Acura MDX)--safety matters

GL

 

I hate insurance companies. They are corporate demons. Thieves.... all of them !!.

 

I agree, but don't hold your breath for a much higher price.

 

No matter what, get out of that X5... work with the insurance agency, agree $15K is a good deal