INSURANCE ISSUE: Need help/Advice

[PlayersExpress]

Hey everyone,

I'm sure everyone is aware of what has happened so far with my car being vandalized and totaled by my insurance.

New problem, my insurance: State Farm is refusing to pay for my after market radio system that was installed 3 weeks before the vandalism to a tune of $3300.

The day after it was installed I went to SF and dropped the deductible from $500 to $0, submitted all the receipts and paperwork from the sound shop, my insurance agents took pictures of the car with the equipment in, pics of the boxes, manuals, etc. I sat down with them and they told me SF does not do riders anymore but as long as everything is documented with them it will be covered. They proceeded in telling me a guy has a $10k bike with another $10k of aftermarket parts that was stolen the other month and SF payed out the $20k. I went over everything with them for over an hour that day.

Now.... State Farm has taken over a month and a half and just got numbers back to us. They are giving us a fair value for the car but only $200! TWO HUNDRED! for the sound system that cost $3300 three weeks before.

They made me go through 2 hours of statement recording over the phone just on the sound system, they hired an outside insurance sound shop called AJRS who in turn hired a shop out in Chicago to send out a sound technician to check out the sound system wiring and to take more pictures. (This was separate of the claims adjuster).......they got all the paperwork and photos that were originally taken and submitted to my local agent also.

Now youre telling me SF made me jump through hoops, and spent over $200 on a 3rd party to see if they would only give me $200 for the system that was supposed to be covered? Then I was told by the main office in Bloomington that we didn't have a rider for the stereo system.... even though my local agent took all the paperwork, pictures, told me they dont do riders but it WILL be covered for the full replacement value if anything ever happens to it. Now they will not cover it?

What is going on here? We have yet to accept the offer because of this matter of $3100 that I would be loosing right out of my pocket. After 30 years of the family being with them for all the cars and the house, we're being screwed.

I was only able to get in touch with one property damage lawyer who was curt and rude about the issue, "Its not worth your time or mine unless youre willing to pay me by the hour at $250. "

Do I take the settlement and take the loss? Do I accept and sue my local agent in small claims? Go after his insurance for essentially "lying" to me? Do I go after SF itself? What can I do?


Adam..... Just like the oil spill counter: Day 38

[husker boxster]

Sounds like your agent was playing by his own rules, but that's not your fault. Most states have an Ombudsman that can possibly work for you on this. Also, you might want to contact your state's Insurance Commissioner and see if they can provide any assistance.

It may wise get copies of anything you submitted as your "documentation". Don't leave everything with your agent, as they may suddenly disappear. As hard as it may be to do, be patient and understand this may take a while to adjudicate.

[lbrown2009]

I feel for you on the insurance not holding up their end, curiosity gets the better of me almost always... 1) what kind of sound system costs 3k+ ? could you pick up stations from mars? there isn't that much room in the car for a real stereo with amps, crossovers etc etc 2) what are you thinking putting that much money into a car with a soft top that can be ripped open with a box cutter? the person or persons who stole it... live near you... or know you.

[lbrown2009]

you went to the insurance agent and brough him all the receipts from the purchase, in your previous post you said you had a sponsorship from the stereo shop, how do you have receipts if you didn't pay anything? shouldn't the shop carry insurance for you? Do yourself a favor... keep your mouth closed from here on out and get a good lawyer.

[mikefocke]

I suspect there is an arbitration clause in it. It may also say something with respect to aftermarket items installed in the car.

[husker boxster]

I would sue only after pursuing the issue with the IC and BBB and come up empty. In Neb, winning a small claims case doesn't mean the loser is going to pay. There isn't any teeth in the system to make the loser pay. Not much use in spending a fortune on a high powered lawyer, winning the case and then getting nothing but a worthless judgement in your favor. State Farm would probably want to keep their reputation up so they would likely pay, but be aware of the pitfalls of the system before you take this route. This would be a good question to ask your lawyer (how are losers forced to pay?) during your initial consulation. You know the lawyer will want his fee if he's representing you in the case, so you'll initially be out more than the $3300 before you collect anything from SF. RM makes a good point - if you do end up pursuing them through the courts, SF may just pay off as the cheaper option. But don't bet the farm on that strategy - assume you'll have to go the distance and be prepared to do so. But only as a last resort. Try the less expense options first.

[lbrown2009]

not inferring anything, just reiterating what you said... if someone sponsors you ... they pay your tab, you didn't mention it was a partial sponsorship you just said sponsorship period. Seriously though... how do you have the money to install a 3k+ stereo and not have money to fix your alarm ? Maybe you weren't holding up your end of the sponsorship bargain and the shop owners got pissed and took back their equipment and decided to send a message along with it.

[PlayersExpress]

Originally Posted by lbrown2009

you went to the insurance agent and brough him all the receipts from the purchase, in your previous post you said you had a sponsorship from the stereo shop, how do you have receipts if you didn't pay anything? shouldn't the shop carry insurance for you? Do yourself a favor... keep your mouth closed from here on out and get a good lawyer.

As a simple reply first off, here is what I said lbrown2009..... here is the link http://986forum.com/forums/showthread.php?t=24830 It is my ad for my original car equipment I was going to put in.


"Hey Guys, I just had a $3500 system installed in my car and I have a whole bunch of stuff for sale. Originally, I was going to go with an all Alpine system but chose otherwise when the shop offered me a sponsorship to use all their product. "

After reading that, where do you infer I do not have any receipts or that I didn't pay anything for it. In regards, I paid a total of just over $3400 for everything at a slightly discounted price.

The sponsorship itself was offered to me in the form of me promoting their shop and product. They gave me a small percentage off on the speakers, hu, part, and labor. They were going to pay me to take the car to local car shows and sound competitions, to show off the sound system to draw more business for them, to pass out fliers, business cards, etc. and to speak highly of the shop to draw in more business. What they were going to pay me per car show/sound competition is honestly none of your business but lets just say it would have been well worth the extra money I spent over putting in a simple Alpine system. Not only was I going to be paid to show off the system, I was free to enjoy it.

Not all sponsorships work in the same way.


But to be frank, yes, I do have signed receipts for around $3400 and all the other materials to boot from owners manuals, warranties, original packaging, etc.


Adam

[PlayersExpress]

Husker,

Good ideas of the Insurance Commissioner and the BBB. I had neither of those pass through my mind as options/help for the situation until you mentioned them. Those will be my first two things on my morning's To-Do list.

I guess my next move would be to sit down and re-read through our insurance policy, all the fine nitty gritty mubo jumbo of legal speak to find more information on the topic.


Thanks,

Adam