Damn You State Farm!

[dbvolfan]

So, 3 weeks ago my wife and I plowed through a 130lb dog at interstate speeds while returning from Nashville. The dog came out of no where and we hit it dead center.

I knew right away that the car was seriously damaged...how much I didnt know but apparently I am in the "Screw You" zone with State Farm.

It's a 2004 Mazda 3S with 44k miles. Pretty standard car with not a lot of options but in great shape. I maintained it much like I do my FJR and have every receipt and record for work done to it by me or someone else.

The inital damage estimate was $5200, well below the threshold for totalling it and I was fine with that even though I had told the Mazda dealer that based on my experience with engines I felt the engine would have to be replaced and/or some major work done to the top end. They said noooo, the engine had a fail safe switch and would shut down before it got too hot (damn dealers!)

HA! Well today they called to say, they got in there and found the entire head to be warped. Being aluminum, they dont want to mess with the possibility of cracks and long term damage so State Farm wants to put in a different engine...........here is where I get PO'd.

OK, they dont want to spring $3k for a new engine, they want to spring $1.5k for a salvaged engine from a junkyeard, not even a reman! I wouldnt expect new because the car has 44k miles but at least a reman!

Keep in mind this car is still under warranty for another 14k miles or 2 years for the powertrain...they want to put a salvaged engine from a wreck in it. I dont know it's service history other than it has 27k miles on it. For all I know it could have been sitting in the rain for a year and a bunch of sludge built up in it!

So far I have received three different answers from State Farm with regards to the warranty. I have escalated it to a supervisor to see what options I have, and I am in the process of digging through my policy holders statement as well but has anyone else been in this type of situation? Any suggestions? I am stuck in this hideous zone where it is $2k below the threshold for totalling it but yet I get stuck with a possible clunker engine that damages my ability to resell it or even trade it in. My only hope is that once they get the engine up and running and go to test it the transmission comes back with issues...afterall, it did shear off the transmission fluid pan. That would put it over the limit.

What sucks is my wife was literally going to sell it when we got back from Nashville for Honda Fit...try selling it now with a new engine in it! It will be worth slightly more than the aluminum in the car.

There, I feel better

 

[Scab]

I don't know if it is economically feasible for you, but you could pay the $1500 difference and get the new engine.

 

[radman]

I don't know that I would be so upset about a good used motor. It won't have any effect on the final value of the car whether you're selling outright or trading in. It could very well have less miles than the current one. In any case, an 04 is only 3 model years old, at the average yearly mileage of 12K per year, any engine a yard would sell would only have about 36K on it. Add to this the fact that a yard warranties late model engines, they're not gonna want to pay for labor on a re-install, so it's more than likely you'll get a good one-and honestly, it's reasonable for State Farm to restore the car to it's former condition-not improve it. Theres a word for it-I forget what it is-an insurance type could post it-but the bottom line is that the insurance company is under no obligation beyond that of restoring the car to it's former condition. As scab posted, you could spring for the extra dough to implant a fresh motor, but as yard motors generally come complete, you would also have to spring for the transfer of ancillaries.

 

[mdisher]

I'm trying to get you the proper terminology to deal with SF on this. Hang tight.

 

[Scab]

Theres a word for it-I forget what it is-an insurance type could post it-

"Pre-Accident Condition"

 

[Fencer]

I agree with Rad.

If I read your correctly the new(er) motor will only have 27k. Granted you don't know the history of the motor, but I think I would do it as SF has a lifetime gurrantee on the repair work IIRC. Check your policy.

BTW, I also have SF.

If you were going to sell it anyway, repair it then dump it. If you go to trade it and the dealer wants to give you dimminished value, then go back to SF and tell them to give you the diff. I had a friend that tried this (didn't get it- Nationwide). But it only pays out about 20% or so of the time.

Good luck.

 

[mdisher]

I'm trying to get you the proper terminology to deal with SF on this. Hang tight.

OK, here's the poop, Rad is right in that they are only obligated to 'restore you' to where you were before, no better, no worse.

On one hand you're getting an engine that has 17k fewer miles, on the other hand you may stand to lose your factory warranty on said engine and/or drive train.

SF will also give you a warranty on said repairs for as long as you own the vehicle. Now this doesn't really help you since you plan on selling it. But I doubt that it will have any affect on the final resale value, except for the fact that you can't transfer that warranty and there is a chance that the factory Mazda warranty is now gone.

If that's the case you're entitled to something, though they may argue that the 17k fewer miles is your reward.

I would have a frank and friendly conversation with both the adjuster and the agent. They do want to be fair, and you should be able to come to an agreement that satisfies both of you. If you're not getting solid answers (that doesn't necessarily mean, what you want to hear), but if you're getting different answers as to what the SF warranty will cover or won't then keep working up the food chain until you do.

I would probably push for both the engine and tranny to be replaced if it's not since you sheared off the pan, that and a reasonable warranty from SF would be good enough for me.

Also it's possible that Mazda may have the service history for the prior motor. Like Rad, I don't think I'd be all that unhappy with a salvage pull in this situation. It's probably a perfectly good motor. SF doesn't do aftermarket anymore, they do new/used.

Hope that helps.

 

[dbvolfan]

OK, thanks for the FB. I hope to learn more tomorrow after discussing this with the SF supervisor.

I certainly dont expect a new engine (have had SF for 23 years now), what has disappointed me is the fact that it is coming from a salvaged car and that it's not at least reman where you have some kind of inspection of it's condition.

Secondly, I am upset that I have received three different responses from SF regarding the warranty coverage. All I want to know is that this motor has at the very minimum the amount of coverage left on my car (13k miles or 2 yrs). Their responses so far range from a one year warranty, to the balance of the 60mo/60k powertrain applied against the new motor (33k miles or 3 years) and finally a third person who told me it's the 13k miles/2yrs remaining on my original powertrain warranty.

As for the transmission, I'll have to wait and see. The Mazda dealer wont really know until they get it all together and try it out.

I have been on the short end of the stick before with State Farm as a victim of one of their insured so I am not asking for a free lunch (I took a $10k loss on a perfectly good car totalled by one of their insured customers 3 yrs ago).

Anyway, I think I will suck downa beer and call it a night.

Thanks for the input!

 

[Scab]

Perhaps they would agree to have the engine inspected prior?

 

[black mamba]

Damn. Remind me to stay away from 130 lb. dogs. That just seems like a lot of damage for the circumstance....but what the heck do I know. Hope it all works out for you.

 

[radman]

OK, thanks for the FB. I hope to learn more tomorrow after discussing this with the SF supervisor.
I certainly dont expect a new engine (have had SF for 23 years now), what has disappointed me is the fact that it is coming from a salvaged car and that it's not at least reman where you have some kind of inspection of it's condition.

Thats just my point-it IS inspected. Yards typically do a compression test, and an oil pressure test, and a running test if possible before they sell a used motor. This protects them in case of a claim on a supposedly bad motor-they have a financial stake in not selling bad **** they have to warranty, and a reputation to maintain in a world full of competition. The yards I deal with are meticulous about testing transmissions and engines, as they represent a nice sale they don't want coming back on them. A reman may have more warranty, but is an unknown until fired, and if the installer has the ignition screwed up etc it can crank at minimum oil pressure for who knows how long till they sort it out. I'm just saying a reman isn't a sure thing, and frankly I'd prefer a good used Mazda built motor with low miles than a Jims Engine and Liquor Emporium weekly special.

 

[donaldb]

.........Theres a word for it-I forget what it is-an insurance type could post it-but the bottom line is that the insurance company is under no obligation beyond that of restoring the car to it's former condition.

The word is.........................betterment..........ACV-Actual Cash Value......and depreciation <_<

Some insurance co's are now offering total replacement cost endorsements. I use to have those endorsements on both my vehicles until they were paid off. The endorsements will pay the full cost of repairing/replacing w/new.............w/o depreciation or betterment deductions up to the full cost of replacing your vehicle with a new one similarly equiped :yahoo: There are conditions though, and one of them is that you must opt for that endorsement when you first buy the vehicle and the vehicle must be a new not used vehicle.

 

[dbvolfan]

Well, I got everything cleared up today and am going with the used engine that has 28.7k miles on it. Thats 16k less than mine had on it and its under my factory warranty or 1 yr, whichever is longer.

Hopefully once they get this baby in there wont be any more surprises. We are $2000 from it being totalled right now.

Thanks for the info Rad!

 

[kulwen]

I have been in your shoes with a truck on mine that took a hit & run. In the end, I called the state insurance commission and got some great advice. I also called my prepaid legal service and got the same advice.

In my case, the insurance company was required to pay me for the FULL extended warranty I purchased when I got the truck. The extended warranty would have become void since I could not prove the maintained history in the event of a warranty problem. In my case, it was not the engine, but my rear axel and suspension was screwed up.

 

[throttlejockeyTJ]

Dude it is a wonder to me that the Insurance Co is willing to give you anything for a replacement engine & transmission. From your description of the incident, with ruptured fluids (no flashlight for inspection) you decided to drive on ruining the drivetrain. If I was the insurance Co I wouldn't pay for it. And your complaining! GO Figure :dribble:

 

[dbvolfan]

WTF! You have your 1yr old on the side of the parkway at 11pm, no traffic and ~20 miles to the nearest exit and see what you do!

I looked at the car, knew that it had some serious damage but flashlight or not I was not stopping there on the side of the road to sit on my ass waiting for someone to finally come along (did I fail to mention there was no cell phone service out there!). I repeat, my only warning light was that my power steering was gone, no coolant, CEL or any other light came on until just before she shut down, in fact my coolant gauge appeared normal.

Regardless, I talked to the mechanics who have said the damage to the engine was already done. Shutting it down would have resulted in the same damage as all the coolant was lost immediately upon impact. The hot engine just sitting there would have resulted in the same thing. The impact was enough to bend the motor mounts for God sake, this wasnt some cocker spaniel out there! BTW, the transmission is fine. The catastropic loss of the coolant caused the head gasket to go.

In retrospect I would not have left when we did, normally we travel during the day however we were trying something different with the baby since she sleeps so well at night. We figured we would leave Nashville around her bedtime and let her sleep the way home and this was the first time we had travelled with her at night. FYI, I also carry an emergeny kit, flashlight, patch kit and 12v tire inflator however as luck would have it the wife had removed all of this when she detailed the car and forgot to put it back in. It was sitting pretty on my tool box when I got home to the garage.

 

[mdisher]

In retrospect I would not have left when we did, normally we travel during the day however we were trying something different with the baby since she sleeps so well at night. We figured we would leave Nashville around her bedtime and let her sleep the way home and this was the first time we had travelled with her at night.

Damn straight! With kids for any long distance, driving in the night is the way to go... They sleep and don't hassle you or annoy you and traffic is lower too.

For those hours surrounding night time travel, a DVD play can turn them into travel zombies too.

 

[OrangevaleFJR]

statefarm totalled my 95 lexus after my daughter tapped someone. They paid me 4600 dollars. Seems their independent value survey had it worth 5100 even though blubook and nada both had it over 8k

5100-deductible = I was screwed

 

[Ric in Sac]

IIRC correctly it was either State Farm or Farmer's that either lost or settled a class action lawsuit over their "independent value survey's". They were bogus and the service was performed by an "independent contractor". Rebates were involved but of course they attorney's got most of the settlement funds.

Second: If you get a used replacement engine you should get the odometer to go with it because the odometer is supposed to reflect engine mileage. How is this going to be done? Gawd - how I love complicating things . . . :lol: