CAN I RECOVER VALUE LOST

Everybody's Uncle,

We have a 1989 Toyota that was in good mechanical and visual shape which was backed into by another motorist.  The repair estimates exceed the market value of the car - how do we recover our losses?  If the insurance company only pays "market value", we are not going to be able to replace the vehicle with something comparable. I've put a couple thousand into it for repairs over the last couple of years - can that figure in?  What are my options?

Steve

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Steve,

You have a tough situation that you can kick and scream about perhaps as an exercise in futility.

You can bargain with the insurance company. They might consider an upward adjustment more to settle the case than to recognize any increased value.

You could bring legal action against the other motorist but the number of dollars involved and the legal costs involved would probably add disproportionate attorney's fees to a case that would be difficult to win.

As the song says, "You gotta know when to hold them; know when to fold them." Even if you could recover your excess investment, the cost of recovery in time, money and annoyance suggests folding the "hand."

Over-improvement is something we do at our own risk. Adding a fifth bathroom, a second swimming pool, or a fourth garage to a two-bedroom home may satisfy some personal need, but will add little resale value to the real estate.

There is a difference between "Useful Life" and "Economic Life" of property. For sentimental reasons you could spend $300 dollars to repair grandma's mechanical typewriter, but it has no practical use in this age of word processors. Collectible value may exist but that is an entirely different market.  

Repair made to a near fully depreciated car is best viewed with potential months of service gained vs. cost. Accidents are at your own risk.

While you are likely to have an economic loss it can be off set by a gain of wisdom. Would you really want a "comparable" car? Technology has brought new comfort and safety since 1989.

Don't buy a typewriter,
Everybody's Uncle