Unitrin Direct Auto Insurance- Bad Faith Claim I implemented the appraisal clause on my diminished value claim and they have failed to abide by it. Tampa Florida

I was in an accident 8/2/07 less than 8 months after I got my 2007 Hyundai Sonata. I have been in a battle with my insurance company since 8/29/07 on my diminished value check.

My car was a new 2007 Hyundai Sonata ($17,000) with 7,626 miles on it at the time of the accident. The car had $9,000 worth of damage including structure damage (radiator support had to be replaced and then the car had to be "pulled" for hours to get it back in place among other issues). So, my car had over 50% worth of damage for what I paid for the car. My insurance company (Unitrin Direct Auto Insurance) horrible horrible company, after initially telling me I had an exclusion in my policy for diminished value. For which I responded by complaining to the BBB and GA Insurance Commissioner's office with proof obtained from Unitrin's own website that they had never sent any exclusions to me, finally cut me a check for $1.017.75. Seriously! They are trying to say that the loss in value of the car would be fair market value minus $1,017.75 and that would be what I could get for the car. Are they kidding me? I don't know anyone who would by a car that had over 50% damage done compared to the value of the car, much less pay a thousand dollars under fair market value.

So, naturally I appealed and I am still appealing it. I hired an independent appraiser to examine the car and he said the DV was $3,050. He also further stated that the car should not have been repaired in the first place. My appraiser has 32 years worth of experience doing this. I have asked around numerous places and he has a solid reputation. So, I trust him. He has also been trying to help me get a check that is more indicative of the loss in value of the car. For which he will receive $0 dollars of. Yep, he's a flat rate appraiser, which is nice.

So, Unitrin and I have been going back and forth over the DV on my car. They rejected my appraiser's figure because he did not use a "scientific formula" and he did not provide Comparable vehicles. Are you kidding me? Let's address the latter issue. Their are no comparable vehicles when it comes to wrecked cars. You can take any 2 cars and wreck them the same way and they will both have different damage. The adjuster with the insurance company is an idiot if she thinks she can find comps on any car. Secondly, there is no "scientific formula" to calculate DV. What Steve did was call around to different dealerships and ask them what they would be the car for.

Steve advised me to implement the appraisal clause, which states that if you and your insurance company cannot agree to a settlement amount. You will each hire an independent appraiser and they will negotiate it out thereby taking you and the insurance company out of it. In the event that the two appraisers cannot come to a settlement agreement they will both mutually agree on a third party umpire and whichever appraiser the third party umpire agrees with is the final amount. So, that is what I did. I implemented the appraisal clause by phone 1/4/08 and via email 1/7/08. Two weeks later I still had not heard anything and numerous calls to the adjuster at the insurance company had not produced results (which was the norm for this company.) I have never encountered such horrible customer service in my life. I have probably called them over 50 times since the accident guess how many phone calls they have returned. 4-5. That's it. Usually only after going above the adjuster and speaking to her manager. He doesn't return phone calls either at least not from voice mail messages. I don't know about you, but if I need an answer to a question or an update on my claim I want my insurance company to return my calls.

Okay back on hand. 2 1/2 weeks after I implement the appraisal clause I get a call from an appraiser (Marshall) who says Unitrin hired him. He comes out and examines my car and he tells me up front that they just called him that morning and have not given him any information about what is going on. I told him it is a diminished value case and tell him the name of my appraiser whom he knows and says is a good guy. He also told me that Unitrin instructed him to NOT talk to my appraiser (violation #1 of the appraisal clause). So, he asks me to email him steve's paperwork since Unitrin has not given it to him and I do. I also tell him my car is a lease. Which does NOT affect DV at all. So, he takes pictures and writes stuff down and says the insurance company will be in touch. Huh! What? The insurance company is supposed to be out of this (violation #2). A couple days later Marshall (Unitrin's appraiser) emails me and asks for a copy of my lease. I send it to him. 2-3 weeks go by and I have heard nothing. I check with Steve and he has not been contacted by Marshall either. I email my not so great adjuster at Unitrin who says she will look into it and get back to me. A few days later she tells me that "the case is being reviewed by management and i should get a response in 3-4 business days". Again I say what! That is a direct violation of the appraisal clause (violation # 3). So, I start firing off emails to everyone I can think of the BBB, GA insurance commissioner I mean everyone. They are in a contract violation now and that is huge. I finally call the manager at Unitrin at this point and ask him what is going on. He had no idea. I told him about the email I got from my adjuster (he is her boss) and he says what do you mean it's being reviewed by management, we are supposed to be out of it. " I was like I know. I told them their appraiser had still not contacted my appraiser this was a couple of weeks ago. He said he would look into it. he also had the audacity to tell me that the delay was my fault. WHAT! How can it be my fault if it hasn't even started? he said you are treating this as a DV instead of treating it based on the cash value of the car. Well, it is a DV case, so I'm confused here. So, anyway this was on 2/26/08 and he tells me that he will tell the appraiser to talk to my appraiser. An hour later I get an email from the adjuster telling me that they are sending their appraiser to talk to my appraiser. Well, duh. Her boss already told me that.

I email Steve and tell him that he should be hearing from Marshall soon and he tells me that once he does he will not be in contact with me until it's over or it goes to a 3rd party umpire. I say okay.

So, Marshall emails me and says that Unitrin had initially put the claim on hold but they had now given him the go ahead to negotiate with Steve.

Oh, I forgot to mention I had been consulting with an attorney at this time because of Unitrin's failure to abide by the contract and the attorney advised me to let the appraiser's work it out. Plus I could not afford the attorney so I did as suggested which was let them work it out...except...

A few days later I get an email from Steve stating he still had not heard from Marshall. This was on 3/11/08. I got an email from Marshall 3/8/08 stating that he and Steve were working on the values that the final settlement was not up to them. Well, that goes against the appraisal clause too (violation #4). As of today 4/1/08 Steve has still NOT heard from their appraiser.

I got in the mail 3/24/08 a letter from the GA insurance commissioner's office which included a response to my complaint from Unitrin. The information the regional manager provided is completely inauccurate. He stated that any statements or claims that they are in violation of the appraisal clause is not true. he did not provide any evidence. he listed names and dates. The dates were wrong as are the names. I have emails and phone records to prove that. He also stated that their appraiser Rick Frantz had spoken to my appraiser as of 2/4/08. Well, first of all Mr. Frantz is NOT the appraiser who came and looked at my car so how can he put a value on my car when he has not even seen it? Second of all my appraiser keeps a log of all calls and mail and email and he has not received one phone call from Mr. Frantz (or anyone else for that matter) and does not know who he is. The funny thing is how can Unitrin state that Mr Frantz has been in contact with my appraiser since 2/4/08 when their appraiser (Marshall) wasn't even given the go ahead to talk to my appraiser until 3/4/08? That the case was in review by management according to an email from the adjuster on 2/26/08. I mean seriously. Get your act together. They don't know what they are doing.

I sent a copy of their letter to my appraiser and had him write a response. I called Clark Howard's consumer advocacy line and they suggested I take them to small claims court. Which sounded great until I realized I would have to go to Tampa to do it as that is where the claims office is.

I called the manager at Unitrin that I had been speaking to and he is nice enough for a car insurance guy. He told me that Unitrin is not going to settle this and it is going to 3rd party umpire. I told him I don't see how he could say that when his appraiser has not contacted my appraiser and that the name his boss gave is not the name of the appraiser that came out to examine my car. The manager also stated that Unitrin had not handled this the way they should have. He said that unitrin is not going to settle if you don't have a scientific formula. I told him that was in violation of the appraisal clause and he didn't say anything. I also told him that the amount that they offered me was not in accordance with the 17c formula (which they claim to use). I told him I calculated that formula and it came out to $1500. He said he would check the numbers and if the error was on there part they would cut another check. I called back on 3/31/08 and he stated the numbers were the same. I told him he was forgetting about the structure damage. He said they really didn't show any. Well, radiator support being replaced counts as structure damage. He said it didn't affect the value of the formula. Talk about ripping me off! Oh, I should probably mention that the adjuster they hired to go out and examine my car before the repairs and take pictures. Didn't do it. He went out there but he didn't write the report nor did he take the pictures. The service manager in charge of repairing my car did and he is a licensed appraiser. So, the adjuster just decided to use his stuff instead, he got paid anyways.

Well, before calling him I contacted another independent appraiser and faxed them all the repair info on the car. they called back and said they really couldn't do anything as i had implemented the appraisal clause but they did vouch for Steve my appraiser. They also stated it looked to them like the DV amount should be between $4-5,000 and that Unitrin was trying to cheat me. They suggested I go after them for a "bad faith claim" which is when they don't honor an agreement. They also suggested I get Unitrin to provide everything in writing to me.

So, I emailed the man whose name was on the letter from GA insurance commissioner's office and asked about that. He told me at this time I didn't have a case and if I had evidence I should send it in. I had already sent it in on the Friday before but I guess he hadn't read it yet. So, I resent it and included a more detailed accounting. I unlike Unitrin provided supporting documents. So, I am waiting to hear back from them. I don't see how they could say I don't have a bad faith claim.

So, back to the conversation with the manager at Unitrin. I told him I requested everything in writing and he said you want your file. I said yes. I told him I was going after them for a bad faith claim. he said Kelly we have really good records. I was like so do I and your records are faulty with regards to names and dates. Mine aren't. He said he would email it to me. We will see if he does.

Any advice? I am sick and tired of the large corporations trying to take advantage of the little people. I am changing my insurance tomorrow. I have already switched to a new agency but my policy won't go in effect until midnight tonight. I am worried that Unitrin will continue to take money from my account as they have a history of doing that.

I could really use some help on this as I don't have the money for an attorney.

Thanks!

Kelly
Atlanta, Georgia
U.S.A.