I just saw a trailer like yours, actually I think it is a couple feet longer with a sale price of $8500.00. I think that the offer of $12000.00 is more than fair and you should be happy with it. I would not doubt at all that you could take the settlement of $12000.00 and find a clean unit just like yours for alot less. In todays market in reality the adjuster is offering you high retail for your unit.
It has always been my understanding, perhaps wrongly, that actual cash value was what you could currently purchase a like unit for on the market. If that is the case, quit arguing about the value and tell the insurance company to just replace what you lost with a similar unit in similar condition. Then the monkey is on their back.
Insurance in many cases these days seems to be like so many big businesses with millions of customers these days - rake in the big bucks base on your $25K value and then try to back door you on the accident collecting end.
Dick, defined ACV is "Purchase price minus depreciation"--pretty simple way of saying something is worth what it is worth right at the moment. You are correct that ACV should be a similar or exact unit to the one lost.
However, an insurance company is not obligated to purchase a unit for you and will not purchase one for a customer for all the obvious reasons, they will not take on the responsibility of the seller to make the unit "right" in case of fault. I have seen them purchase new vehicles but only under very different circumstances.
Insurance IS a big business that works on a very small margin of profit--it was much better when interest rates were high and they could make lots of money on the premiums in before the premiums went out in losses and expenses. I was in the business 30 years and never "back doored" one customer and while I saw some questionable decisions made by my company, most of the conduct was ethical--up and down the line! The customer was given the benefit of the doubt more than you might imagine.
Don't you think it is interesting that we spend so much time talking about total losses when, in fact, total losses are rare--maybe we should be discussing how insurance companies handle the day to day collision and comp claims, liability, and medical claims that apparently are handled well, since there is little discussion here about those frequent claims.
Chuck, during the fifty years since I started driving I have only had to deal with insurance companies two or three times. Personally, I have never had a problem but I have been with the same agent and company for a very good long time and have always had a good relationship with both.
Still...I am always somewhat suspect of large faceless companies.
Things I've learned from my accident two years ago when a drunk hit me and broke my neck.
1. The insurance company is not in business to take care of their clients but to make a BIG profit.
2. Insurance fraud is almost always the insurance company ripping off the client.
3. Insurance companies will spend BIG bucks to convince clients No. 2 is false.
4. Never waste money on insurance unless one is willing to go to court to get it.
5. Ohio is possibly the worst state to have an accident in because the state is insurance companies best friend.
6. If on welfare, or drunk, and leaves the scene of an accident, preferably all three the more rights one has.
7. If one works for a living and drives legally one has very few rights.
(Just read posts on speeding in RV.net justifying speeding if in doubt.)
"Chuck, during the fifty years since I started driving I have only had to deal with insurance companies two or three times. Personally, I have never had a problem but I have been with the same agent and company for a very good long time and have always had a good relationship with both.
Still...I am always somewhat suspect of large faceless companies."
Dick, you are fortunate to have that long term relationship with a professional agent. That is the best way to put a face on large corporations. I think if alot of the folks here with legitimate complaints about claim experiences had a solid professional to help and advocate for them in a claim, we wouldn't see as many threads of this nature.
I always felt that assisting in a claim was one of my main purposes as an agent.
That is where I felt I really earned my money.
Follow up
I have agreed to settle claim for $11,925.00. They (Progressive) will wear you down. I am ready to put this in the closed file and move on to the next adventure
01 X Limited 4X4 W/3:73 PSD. TT Dark Green Satin / Parchment, EBM2, Monroe Reflex Shocks. BD "X" Monitor,ART brakes and rotors, AMSOIL By Pass Filter,Air Filter, 5W-30 oil. over 130,000 miles on one oil change as of 2/1/05 W/ 34.2 Coachman Royal TT
Never heard of such a thing. Premiums on RV's are based on new cost--whether you have ACV or Replacement. You can't arbitrarily reduce the new cost for depreciation and I have never seen a premium reduction based on depreciated value that could be negotiated between the owner and the insurance company--that would be chaotic for underwriters and actuaries!
ACV is how probably 70% of all vehicle losses are settled no matter what kind of coverage you have and it is a very fair method of settlement--it is the actual (real) value of your unit--what it is worth.
I just did that very thing with American Family. When we bought our rig 2 years ago, it was worth 70,000. Now it's worth 35,000. If we had a total loss, we would only get 35,000 why are we paying the same premium as when it was going to pay out 70,000?
So I called, and we got it adjusted.
Other warning are you contents! Most *camper policies* only cover $500 of your posssessions. Check the back page of your policy if you don't believe me.
Heck, that don't even cover our lawn chairs or grills! So we had to make two lists... one of all the items we keep IN the rig all the time ($7,000) and then a list of all the household things we take from our home regularly when we travel ($8,000) .... and we had a rider added to our policy for $100 more a year to cover these items.
Things like laptop, video camera, GPS, Ipod, tools, helmets, boots, fishing and golfing gear etc. all need to be *proven* if we had a loss to even be covered under our homeowners. So our agent suggested a video, which we shot, of every compartment, cabinet contents and then filmed the things we normally take along on any given trip.
This thread is making me happy that I have an agreed value policy. At least on travel trailers, I can't see a reason to have any other coverage. The rates are low to begin with and an actual cash value policy only saved a marginal amount of money.
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