Q: Is it legal for an insurance co. to declare a total loss & refuse to include the ADA conversion package in the comps?
I purchased a used minivan, for my father, from a local dealership. He’s handicapped & it was equipped with a full ADA conversion. After speaking to the adjuster she said she was going to call the company to verify the conversion details. The company confirmed the vin # and the date the conversion was completed. They also emailed the adjuster an estimate of the conversion package details and cost. I received another call from the adjuster saying unless I can provide original receipts for the original conversion it will not be included. I explained I purchased the van from the dealership for my disabled father because of the conversion. I provided two service records. One showing a recall and the hand controls were removed and replaced and another showing it was a ADA equipped van. If the inspection was done “ground up” to declare a total loss they had to see the modifications for the package. The comps provided were for a base model.
A:
The insurance company is required to act in good faith and deal fairly with you. In my opinion, the insurer should consider all relevant factors in determining the value of the vehicle, including modifications that enhanced the vehicle's value.
ADA conversion packages are often expensive and add value to a vehicle. The insurance company should include the value of these modifications when determining the total loss payout. The fact that the vehicle was purchased with the modifications already in place, and that the modifications were confirmed by the conversion company should be sufficient evidence of their existence and value. The adjuster’s demand for receipts for the ADA conversion is fairly common, but those receipts are not necessary.
If the carrier refuses to include the value of the ADA conversion you may have grounds to challenge the offer. In that case, you may consider filing a complaint with the Nevada Division of Insurance. You could also seek private counsel.
While Nevada law does not mandate the inclusion of ADA conversion packages in total loss valuations, principles of fairness and good faith dealing suggest that the carrier should consider these modifications. Personally, I believe its wrong that they are refusing to compensate you for this value.
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