Travelers Insurance has extremely sleazy business practices and they have been trying to screw me on repairing my car for several months now. Their businesses practices are in violation of California law and I’m creating this web site in hopes of attracting the right law firm to file a class action suit against Travelers. I think it is likely that the way I’m being treated isn’t unique and that these people need to be punished. What better way to punish Travelers Insurance than a class action lawsuit. Interested parties should contact me at marc@perkel.com.
These are the parts of the law that Traveler’s has violated so far with respect to my claim. CA 903.7(h)
(2) Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies. (3) Failing to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies. (4) Failing to affirm or deny coverage of claims within a reasonable time after proof of loss requirements have been completed and submitted by the insured. (5) Not attempting in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear. (6) Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by the insureds, when the insureds have made claims for amounts reasonably similar to the amounts ultimately recovered. (7) Attempting to settle a claim by an insured for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made part of an application. (12) Failing to settle claims promptly, where liability has become apparent, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage. (13) Failing to provide promptly a reasonable explanation of the basis relied on in the insurance policy, in relation to the facts or applicable law, for the denial of a claim or for the offer of a compromise settlement.
This web site contains my ongoing story in my battle with Traveler’s Insurance company to get paid for damages to my care caused by a driver from a company they have insured. My story is probably tame compared to other’s but it’s my story, I’m getting screwed by these people, and I’m someone who does something about it. I find the way I’ve been treated as shockingly disturbing and I’m here to share my story.
It started with an auto accident on 01-22-2016. I was getting off of 880 in Fremont onto Fremont Blvd and I had stopped at the end to make sure I could make a right without running into traffic and someone rear ended me hard. I was driving a 2012 Honda CR-V and they did $12,000 worth of damage to the car. That’s what the estimate was to fix it. Cars of that make and model usually sell used for around $21,000.
However – Travelers insisted that the car was totaled. They told me this late 02-04-2016 and the next Friday the owners of the body shop (Johnny’s Custom Auto Body in Gilroy CA) were out of town. They said that the car couldn’t be repaired and that if it were it would no longer be safe to drive because of some bending of the frame that couldn’t be fixed. And unfortunately – I believed him.
Here are some pictures of the damage:
The Travelers agent Juan C. Parez said in an email:
I have attached some documents for you to review. I will be calling you to review this with you, but what ended up happening is that your vehicle had extensive structural damage and it turned into a total loss.
The settlement letter I have attached is what Travelers will pay you for the vehicle. Once again I will call to review this with you.
Normally it takes me a while to pick out a car but I had been interested in the new Honda HR-V as a really interesting car. And on Saturday the 6th I found one and bought it. And – I have to say it’s a great little car.
However – the next Monday I talked to the body shop and they were surprised that it was totaled. The body shop thought the car could have been easily repaired. The frame was bent but not a lot and that according to his numbers the cost of repairs was only 62% of the vehicle value.
Additionally, the amount that Travelers was offering me for replacing my car was very low, only $17,176 – $387 for previous damage for a total car value of $16,789. So at that point I realized they were out to scam me. That’s about $4000 less than what I can buy a used car for.
So at this point I’m pissed. Instead of repairing the car they are trying to buy the car from me at a highly discounted rate and then resell my car at auction and come out ahead of where they would be if they just fixed it. I told them that their offer wasn’t acceptable. My response:
It turns out that I found out yesterday that you could have fixed my car but you decided to total it because someone gave you a high salvage bid for it. I found out that the cost estimate to repair the car was 62% of the car’s value. And that was my favorite car ever and I would have rather had it fixed. But you sent a letter to me lying about the condition.
My car was not a total loss. You lied to me about that. That is fraud.
I didn’t find out until I bought a new car. I got a new Honda HRV. But I would have preferred to have had my old car fixed.
So – I am really pissed off now. I have filed a complaint with the California Department of Insurance reporting your fraud. I haven’t decided what to do next but taking your low ball offer is not what I’m going to do.
Your letter states:
For your protection California law requires the following to appear on this form:
“Any person who knowingly presents false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison.”
Your claim that my car was a total loss was false and fraudulent and I’m hoping they peruse criminal charges against you.
To this Juan responds:
Hello Marc,
That is fine. The first thing I want to discuss is the reasoning behind the vehicle being declared a total loss. I have attached a copy of the estimate I completed at the repair shop.
If you look at the estimate it shows a total of $12,358.12
The value of the adjusted value of the vehicle is $16,789.05(I know you are not in agreement with this value we will discuss this also)
If we divide the estimate total by the value of the vehicle we get 12358.12/16789.05 = .73608 which means the estimate is 73% of the value of the vehicle. I am not sure where the 62% number came from.
Some things to keep in mind, the structural integrity of your vehicle has been severely compromised. I have attached some photos to show you the extend of the damage to the rear floor and frame rails of your vehicle. This estimate is only for the damage that is visible now, it is common for there to be additional things that will be added to the estimate once repairs begin. That is something that hasn’t been accounted for in the estimate.
When we consider the extend of the damage and the fact that the shop would need to cut off the floor of the vehicle, cut off the rear frame rails, pull the rear body of your vehicle to have the new parts line up along with the cost to repair that is when it was decided the vehicle would be a total loss. I wanted to explain the reasoning for the vehicle being a total loss.
Please let me know if you have any questions about this, if you are ok with this then we can discuss the value of your vehicle and the comparable vehicles you submitted.
What I came to realize is that Travelers is screwing me. There’s no possible way that the insurance adjuster would have the technical knowledge to determine that the car couldn’t be fixed when the auto body shop who does this for a living knows it can be fixed.
None of this is true. The body shop denies that there is a problem with the structural integrity of the car and that there was damage – but it was repairable. So after more arguing with Travelers Insurance I told them to fix it.
Travelers wanted me to sign off on the car so they could move it to an auction yard and sell it. I refused. I told them I would sign off when they made me a reasonable offer.
Then they sent me this:
Hello again Marc,
I wanted to explain the settlement letter you received.
Actual Cash Value 17,176.00 Tax + 1,469.04 UPD – -386.95 Registration Refund + 227.00 Less Deductible – n/a Settlement Amount = 18,485.09 On the letter you see a section where it says UPD that stands for Unrelated Prior Damage. If you look at that line you will see there is a -386.95 deduction. The reason for that is that there was some prior damage on your vehicle that needed to be accounted for. The left fog lamp on the bumper was broken and the drivers door had a significant dent and scrapes on the door. That is what this deduction is for.
I completed a basic estimate on how much it would be to fix those things on the vehicle and the amount came out to $515.93 based on the year of your vehicle we only take a 75% deduction of that estimate which is where the -$386.95 comes from. The estimate I wrote for this deduction is the minimum I had to take off, I used an after market part on the estimate which costs less than the original headlamp and I didn’t include removing the handle, belt molding, trim panel, and mirror that are on the door to properly paint that panel. This was all done to minimize the deduction to your settlement.
At this point I have talked to my Manager and Travelers will only approve paying storage through this Friday 2/12/16. I want to be very clear that I am not forcing you to accept any settlement that you are not comfortable with, but at the same time it is part of your duty to mitigate the storage fees the shop is charging. I would be glad to set up a tow to get the vehicle to a storage free facility until you and Travelers come to an agreement on a settlement. If the vehicle stays at the facility past this Friday 2/12/16 you would be responsible for those additional fees.
The last part is significant. At this point the body shop is charging for storage and what they are trying to do it put me in a bind. If I don’t release the car to them they are threatening to make me responsible for storage fees. I respond:
I want to make something clear.
YOU DO NOT HAVE PERMISSION TO REMOVE MY CAR OR DO ANYTHING WITH IT TILL WE SETTLE.
They respond:
Hello Marc,
At this point it doesn’t look like we are getting anywhere.
Travelers is not going to change their stance on the vehicle being a total loss, and Travelers is not going to change the settlement offer on the vehicle just because you want a higher offer. There has to be a justification for the value of the vehicle to be valued more than what the report says, and from the comparable vehicles out there it appears to be a fair value. The comparable vehicles you sent us are much lower in mileage which is why they would be priced higher.
The other option you might try is that if you have collision coverage on your vehicle you might try and file a claim through your own insurance policy. Just a thought.
Once again I want to make it very clear Travelers is only paying for storage up until this Friday 2/12/16.
Clearly the storage issue is a sore spot for them. They are in fact liable for the storage. But they are trying here to use this as leverage to get me to take their lowball offer.
At that point I get online and go to autotrader.com and look up what it would actually cost me to buy a similar car to the one I had. Here’s an image of what I found. Average price – $21,517. And I was open to some adjustments on the value as long as we were in the ballpark.
Their estimates included cars that were almost 200 miles away from here. They were based on DMV records and not based on real cars that I could actually buy in my area. Cars have different values depending on what you are looking for. I think these values are based on what a car is worth if you were going to get a title loan against one, which is a lot lower than what it costs to actually buy the car. Here’s my response:
In your evaluation report from CCC ONE it states:
“Comparable vehicles used in the determination of the Base Vehicle Value are not intended to be replacement vehicles but are reflective of the market value.”
You are obligated under state law to replace my vehicle. So I have filed a second complaint with the California Insurance Commissioner for fraudultnt business practices naming both of you in the complaint. Case numbers 7049322 and 7050411.
I sent you a list of replacement vehicles. I’m attaching it again. These are the only cars listed on Autotrader.com that are 2012-2013 Honda CR-V EX AWD Dealer Certified cars in 75 mile distance that are available. You can see in the image what my selection criteria was.
The average price is $21517.
So – my estimate.
Car: 21517
Sales Tax: 1883
Registration: 227
Documentation Fee: 80
Registration Transfer Charge: 29
Medical so far: 50
Trailer Hitch for my new car + installed 250Total: $23986
So – that’s about what you owe me at this point. Your offer is 6000 too low.
The car is still at the body shop. You are responsible for storage charges. If you want we can talk about other storage locations but you will have to pay to move the car and the storage fees. These charges are not on me as you have previously said. They are on you. If however you quit your stupid games and settle with me I can release the car to you. But as long as you try to cheat me the storage costs are your responsibility.
At this point (02-27-2016) another agent at Travelers Kevin J. Buckley jumps in saying:
Hello Mr. Perkel,
My name is Kevin Buckley and I am an Unit Manager in our Total Loss Department. I have reviewed your claim and email communication between you and Jason and Juan. Juan has explained in detail Travelers decision to declare your vehicle a Total Loss and provided a breakdown of our offer. Travelers is settling your total loss on an Actual Cash Value basis not a replacement cost basis. We are not obligated to purchase a replacement vehicle for you. Travelers utilized an automobile valuation service, CCC, which determines the cost of a comparable autos. Adjustments were made for mileage, vehicle condition, and prior damage. A sufficient number of comparable vehicles were utilized and were a combination of private sales data from the Department of Motor Vehicles and dealer advertised vehicles. This is an approved method to determine the actual cash value of a vehicle in the state of California. I have attached a copy for your reference if you don’t have it. If you still wish to continue to pursue a claim with Travelers we will need you to release your vehicle to Travelers, provide vehicle loan information if your vehicle is financed and also transfer ownership of your title.
You may also want to consider all of your options including utilizing your own collision coverage if you have it. Your insurance company can evaluate your vehicle as well. This would give you additional options including invoking your appraisal clause on your policy if applicable.
Please feel free to call me directly to discuss moving your vehicle as Travelers will not be responsible for charges after Friday 2/12.
So since we couldn’t agree on what the car was worth I sent this:
At this point since we can’t agree on what it’s worth you can fix the car and I’ll sell it and get whatever I get. The car can be fixed for less that what you are offering me. So fix it!
The way I see it, even using their lowball numbers the damage was only 73% of what the car was worth. So since the damage was less than the car’s value then if we fix it that eliminates the question. And it is a reason to leave the car at the body shop waiting to be fixed.
STORAGE CHARGES
So now we are in a standoff. They want me to “move the car” hoping that I will let them have it and have no place to move it to. The storage charges are $100/day. Someone is going to have to pay them and they think that I’m going to be intimidated and give in. But they are mistaken.
I know the car is worth fixing and I know what they are trying to do, and I know they are responsible for the storage charges. We exchange several more emails. They keep warning me about these storage charges that I’m going to be responsible. I keep replying them that, no, they are responsible.
USING MY OWN INSURANCE – GEICO
This went on for several weeks and finally I decided to use my own insurance. I have collision coverage through Geico Insurance. Geico came out and looked at the car and they agreed with the auto bod shop owner and I that the car was indeed repairable and they authorized fixing the car. And work on the car has now begun. Geico valued the car much higher than Traveler’s did and the even found some damage the the auto body shop missed and Geico’s numbers had the damage at 62% value of the car.
Here’s the email exchange I had with Traveler’s about that.
Me: Geico Insurance came out to look at it today and determined the the car is worth repairing. So your claim that the car can’t be fixed isn’t valid.
Since it is your fault I shouldn’t have to go through my insurance company to get to you. So it’s time for you to authorize repairs.
I’m also charging you for 2 hours of my time today having to go out there and deal with the repair estimates that you should have authorized in the first place.
Traveler’s responds:
Mr. Perkel,
We will not be authorizing repairs as we have deemed your vehicle to be a total loss. We have provided our explanation of our decision and also given the settlement amounts and requirements if you want keep your vehicle or if you would like Travelers to pick up your vehicle.
I reply:
Me: It’s not up to you. Geico has already authorized the repairs. The car is not a total loss. And – you will be paying for it. And I’m going to sue you for lying to me about it being a total loss.
Now Travelers is on the hook for 41 days of storage because the car is now being fixed. Had I bot left my car there Travelers would own it. Now I’m going to get the chance to sell it and see what it’s really worth. My guess is that I’m going to get more then the under $16,789 that Travelers offered.
MEDICAL EXPENSES
Yes – I do have medical expenses. Not a lot yet but I submitted them to Travelers. I was having some abdominal pain (still do) from where the seat belt held me in the seat. And it felt like my hips were on crooked. I got a xheckup at Kaiser and went to my chiropractor. So far I submitted $325 in medical claims. But Travelers refuses to pay any medical claim unless I sign some sort of agreement as part of a final settlement. Traveler’s responds:
Mr. Perkel,
I will gladly pay that invoice once we have a settlement agreement on your injury claim. Either we can settle full and final for an agreed amount and I will issue a check upon receipt of a signed release; or we can agree to an open settlement where we agree to an amount up front to be paid to you as well as agree to pay for future treatment up to an agreed upon dollar amount over an agreed amount of time. Again I would need a signed release confirming this agreement prior to payment.
Please let me know if you are interested in either of these settlement options.
Thank you,
Nick Watilo | Claims Professional
I have not been offered any kind of agreement or settlement and since this isn’t over I’m reluctant to make a deal when the future is unknown. And although he talks about an agreement they have made no offer.