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This pertains to my experience with State Farm and my Porsche (I also own a Mercedes E class). What happened could be equally applicable to a Mercedes. My 2018 Boxster S in perfect condition with 8000 miles was rear ended recently . State Farm insures both parties. Liability is 100% with the guy who hit me. State Farm insists that if salvaged parts from a wrecked car are available, they will only pay that amount because they believe salvaged parts are as good as new Porsche parts . They also insist that they will only pay the average labor rate of local body shops...not the rate of the Porsche trained and certified body shop which has my car. Finally, they sent a form letter saying they do not accept that a "properly repaired " car suffers any diminished value after an accident---apparently even if its repaired using salvaged parts by an untrained body shop. In other words, they are trying to cheap out at my expense and using bogus arguments. There's really no way to know whether salvaged parts were originally oem, Chinese, or where they came from before being salvaged...or what damage they may have suffered before salvaging and who repaired it. For these reasons, I plan to use oem parts (hoping they're available) and the Porsche certified shop, even if I have to pay out of pocket and litigate, and also to demand diminished value compensation. We may have to let a jury decide but I do think it will be a difficult decision. I have all my insurance with State Farm and have been a customer for 40 years. This is a warning to other State Farm customers. They are like a terrible neighbor.
Last edited by Tiburonsteve; 01-29-2022 at 11:16 PM.
2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Originally Posted by Tiburonsteve
This pertains to my experience with State Farm and my Porsche (I also own a Mercedes E class). What happened could be equally applicable to a Mercedes. My 2018 Boxster S in perfect condition with 8000 miles was rear ended recently . State Farm insures both parties. Liability is 100% with the guy who hit me. State Farm insists that if salvaged parts from a wrecked car are available, they will only pay that amount because they believe salvaged parts are as good as new Porsche parts . They also insist that they will only pay the average labor rate of local body shops...not the rate of the Porsche trained and certified body shop which has my car. Finally, they sent a form letter saying they do not accept that a "properly repaired " car suffers any diminished value after an accident---apparently even if its repaired using salvaged parts by an untrained body shop. In other words, they are trying to cheap out at my expense and using bogus arguments. There's really no way to know whether salvaged parts were originally oem, Chinese, or where they came from before being salvaged...or what damage they may have suffered before salvaging and who repaired it. For these reasons, I plan to use oem parts (hoping they're available) and the Porsche certified shop, even if I have to pay out of pocket and litigate, and also to demand diminished value compensation. We may have to let a jury decide but I do think it will be a difficult decision. I have all my insurance with State Farm and have been a customer for 40 years. This is a warning to other Stat Farm customers. They are like a terrible neighbor.
Like you I have been a customer of State Farm for over 30 years and they have insured my cars, from Toyota to Porsche, Mercedes, Audi and BMW plus my house, jewelry and umbrella.
Of course you are correct: I would only accept OEM Porsche parts and a certified Porsche repair shop. You have a substantial investment in your car and that has been reflected in your premiums. The problem is that your insurance is not paying for the repairs it is the other guy so you have little leverage. But actually you do:
During Sandy I had damage to my house: State Farm sent an adjustor who offered me a check in the amount of $27,500 as payment in full. I asked it this was a down payment on the repairs and he said "No. Payment in Full": I just handed him back his check. He asked how was I going to do the repairs, I said out of my pocket and I would deal with State Farm later. State Farm was counting on me not being able to go ahead with my repairs until I had money from them which unfortunately was the case for so many on Long Island. I fortunately was able to pay for my repairs out of pocket, and afterwards pursue reimbursement from State Farm.
The final repairs came to $72,500 which I had canceled checks for, but State Farm would not offer more than $47,000. Our Governor, Andrew Cuomo, set up arbitration panels which I went to. The State Farm representative said that my labor costs were out of line and further that the material used was too expensive. I asked him if State Farm allowed for different labor costs for different areas: I pointed out that repairing a $200,000 home was different than repairing a $1.5 million home. He said the labor and material cost were the same as a house is house. I asked him, and this is the important part, if two German cars, one a VW and the other a Mercedes would he expect the parts and labor to be the same. He said yes.
The arbitrator's jaw dropped open and I was awarded the full $72,500 less my $5,000 deductible.
Other times I have had to have my windshield replaced and initially State Farm wanted to use an aftermarket windshield. I said my car is leased and at lease end if Mercedes would accept an aftermarket windshield than go ahead. State Farm authorized an OEM MB windshield.
As your insurance is not covering your repairs, but the other guy's is, you may have to pay out of pocket for the repairs and then demand reimbursement from the other guy's insurance.
I am confident in the end you will be fully reimbursed, but expect State Farm to be recalcitrant.
Finally, using Sandy as an example, every other insurance company was doing the same as State Farm - so State Farm was no better or worse than others.
I do believe if your policy was involved the situation would be different. Just document everything and put the other guy's insurance on notice by certified mail - return receipt requested that you are rejecting the use of any parts that are not OEM and any shop that is not Porsche certified. The sad thing is that even using OEM parts and a Porsche certified shop, CarFax will show that your car has been in an accident which will greatly decrease its value. If there was any way to "total" your car, I would recommend doing that.
Good Luck!
PS: I am still with State Farm and chaulk up that experience up to "cost of doing business". Too many others, paying far more than what State Farm cost me, had the same experience.
2 experiences.
I'm in college riding shotgun with my friend. We're driving in a parking lot. Someone pulls out of a parking spot right in front of us - no time to stop. It is clearly the other driver's fault. Friend is insured with State Farm but just liability. The other driver is fully insured with State Farm. Result? State Farm said since it was a parking lot road rules don't apply so each driver is equally at fault. Therefore only collision insurance is applicable. The other car was repaired. My friend got screwed, nothing else.
Recently some low life ******* decided to break into my MB wagon. They were hitting the side windows with rocks when I yelled at them and they took off. Though neither window was broken they were marred. I went to my insurance company site (geico) and they had a form to fill out for glass replacement. They recommended I use their choice (safelite) but stated I could use anyone as long as it was within market rates. I had the dealer do the replacement with OEM MB glass. Geico paid no question asked.
I think part of the difference is in state laws. The first was in Montana with no real consumer protection. The second is in CA which has good consumer protection.
Insurance companies don't make money by giving it away. They will do what they can to reduce payouts. If you're in a state with good protections you can at least get a fair result.
These are very troubling stories, and I sympathize with each of you — but I wonder is this this business model is unique to State Farm or do all automobile insurance companies work this way?
I have had many bad dealings with our insurance companies but I do not believed I have ever been in a situation where my auto insurance company is forcing me to use salvaged parts. Salvaged parts are basically used reconditioned parts, one grade lower than aftermarket new parts in my opinion. State Farm spends a lot on TV commercials but they should spend more on making their customers happy.
The question of whether to use salvaged parts or not depends a lot upon the shop that will do the work. I have a trusted, certified shop that I have used for over 15 years. A few years ago, when my 2001 Lexus was hit, the insurance company wanted to use a salvaged door. I reviewed the situation with the shop manager, and he was able to source a door that was every bit as straight and nice as my car had been (car was immaculate, BTW), and the repair went perfectly. I would trust this shop to again select parts for me, as they know how picky I am. Another shop? Probably not.
I also changed insurance companies recently, after about 40 years with State Farm. For me, it was a combination of rate creep (minimal claims, rates still increase) and a disagreement over home insurance coverage. When I spoke with my favorite body shop manager about which auto insurance companies are better or worse, he said that unless you go with one of the "premium" companies (like Chubb), they are all the same now. None of them ever will issue an estimate that comes even close to the total cost of repair. They all require return visits by adjusters to approve the actual costs of repair. Most, if not all of the auto insurance companies have ended the use of the old "on the spot" adjusters who actually evaluated the cars in detail and came really close to the cost of repair. Now they estimate from cell phone pictures submitted by the insured, and leave the rest of the estimation process up to the body shop and one or two roving field adjusters. They do this to reduce staff costs -- fewer adjusters on the street means less salary/benefits costs and fewer company cars on the road. The actual cost to repair the vehicle is what it is. They do it the cheapest way they can and let the chips fall where they may. They also use the photo estimates because so many people have accidents but if the car is still drivable, they never repair their cars. For these people, that check in settlement is just extra pocket money. They may take a bigger loss at sale/trade/lease return time, but they are too short-sighted to realize that.
I once saw a research study that showed that in a major metro area like Chicago, nearly 30% of cars on the street carry visible body damage. In my area, maybe less, but in some other parts of the area, more I'm sure.
2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Originally Posted by SteveE400
The question of whether to use salvaged parts or not depends a lot upon the shop that will do the work. I have a trusted, certified shop that I have used for over 15 years. A few years ago, when my 2001 Lexus was hit, the insurance company wanted to use a salvaged door. I reviewed the situation with the shop manager, and he was able to source a door that was every bit as straight and nice as my car had been (car was immaculate, BTW), and the repair went perfectly. I would trust this shop to again select parts for me, as they know how picky I am. Another shop? Probably not.
I also changed insurance companies recently, after about 40 years with State Farm. For me, it was a combination of rate creep (minimal claims, rates still increase) and a disagreement over home insurance coverage. When I spoke with my favorite body shop manager about which auto insurance companies are better or worse, he said that unless you go with one of the "premium" companies (like Chubb), they are all the same now. None of them ever will issue an estimate that comes even close to the total cost of repair. They all require return visits by adjusters to approve the actual costs of repair. Most, if not all of the auto insurance companies have ended the use of the old "on the spot" adjusters who actually evaluated the cars in detail and came really close to the cost of repair. Now they estimate from cell phone pictures submitted by the insured, and leave the rest of the estimation process up to the body shop and one or two roving field adjusters. They do this to reduce staff costs -- fewer adjusters on the street means less salary/benefits costs and fewer company cars on the road. The actual cost to repair the vehicle is what it is. They do it the cheapest way they can and let the chips fall where they may. They also use the photo estimates because so many people have accidents but if the car is still drivable, they never repair their cars. For these people, that check in settlement is just extra pocket money. They may take a bigger loss at sale/trade/lease return time, but they are too short-sighted to realize that.
I once saw a research study that showed that in a major metro area like Chicago, nearly 30% of cars on the street carry visible body damage. In my area, maybe less, but in some other parts of the area, more I'm sure.
In all fairness to the OP, there is a huge difference in value, perhaps as much as $50,000 between a 2018 Porsche Boxster S and 15 year old Lexus.
I went through this with USAA and my 2015 C400 that was rear ended and totaled. Their claimed value comparisons was based on a third party service that was 5-7K low, I had to hire a professional appraiser and was able to get 5K over what was originally offered.
2019 E 450, 2016 E350 4matic (retired), 2018 Ford Edge Sport, 2008 Porsche Boxster
Originally Posted by millsjq
I went through this with USAA and my 2015 C400 that was rear ended and totaled. Their claimed value comparisons was based on a third party service that was 5-7K low, I had to hire a professional appraiser and was able to get 5K over what was originally offered.
WOW! I would not have thought you would have had problems with USAA - I believe their customer satisfaction rating is the highest or one of the highest.
So if this situation is ubiquitous, then perhaps the best thing to do is to go with cheapest.
Just to chime in, I have Cincinnati Insurance, have for over 20 years, they have always been spot on, Metal fell off a truck took out the windshield, dented hood, and A pillar, everything was replaced with OEM parts, no question. This past July ran over a truck brake shoe in my 13 Audi A5 Cabriolet, picture shows shoe after it had dislodged somewhat, the prongs went thru the oil pan into the engine. repair exceeded 70% of the value of the car so it was totaled, Cincinnati's 1st offer was within $1500. of what I expected, made my case to the adjuster, next day offer was $1000. more than I expected. I liked the car, not quite as comfortable as my 08 CLK350 but close enough and it was paid for.
I have shopped other insurance companies that all swear they are going to save me lots of money, answer: no, they didn't the best would save me about $150.00 a year. My old Audi dealer in Chicago (back in 2001) once told me that State Farm was the absolute worst to deal with on repairing a car, they have ALWAYS wanted to use remanufactured (USED) parts.
01-29-2022, 06:44 PM
