A South Florida couple said a fender bender crash almost ripped away their fully covered car. Consumer advocates said what happened is an auto insurance pitfall that could cost you if you’re not prepared.
Patricia Haddon and Barry Rebo are retired, in their 70s, and struggled to turn the page on a collision with their insurance company over a punctured tire, bumper damage, and pressure to give up Rebo’s 2007 Lexus SC 430, a hardtop convertible.
“We really felt like we were bullied into options that were not real options, ignoring our requests for estimates, excetera,” Haddon said.
One day after Thanksgiving, Rebo crashed his Lexus on Interstate 95. However, he could still drive it if not for a flat front tire. So, he and his wife called their auto insurance provider, State Farm. The couple has full coverage and pays premiums on time, Haddon and Rebo said.
They did not expect what happened after calling the insurance company to file a claim.
“No one was returning our calls, and then when we finally got a hold of somebody, they were from the total loss department,” Haddon said. “She told us (the Lexus) was a total loss.”
That declaration was a red flag signaling trouble to Haddon.
“A State Farm representative said that they sent (the Lexus) to the body shop and that the body mechanic himself was the one who determined it was a total loss. (Later) A State Farm supervisor confirmed that the agent who told us that was the party who determined it was a total loss.”
The agent informed the couple that the repairs would exceed the car’s value, estimating costs at over $12,000, according to Haddon.
“We asked for an explanation and to see the paperwork supporting the total loss determination, but the agent became confused and increasingly aggressive. When she realized we would not accept the decision, she threatened to end the call. Despite repeatedly requesting a second estimate, State Farm ignored our appeals and continued to email us that the car was totaled.”
Under Florida law, vehicle owners must surrender the title of any car, truck, or SUV deemed a total loss within 72 hours. However, owners or insurance companies can purchase a salvage title, keep the vehicle, and resell it—with restrictions on salvage title sales.
CBS News Miami asked State Farm for an explanation on Rebo’s case.
“Due to our customer privacy policy, we cannot discuss claim specifics,” a State Farm spokesperson said in an email to CBS News Miami.
The spokesperson added that the company would review the situation and provide appropriate assistance.
The Consumer Federation of America advocates for better protection for auto insurance consumers.
“If you’re dealing with an older car that’s been in a minor crash, try to get an independent adjuster or auto body shop to assess the damage,” said Michael Delong of the Consumer Federation of America. “Insurance companies often direct customers to their own preferred shops, which may be biased. Don’t just take the insurance company’s word for it.”
Haddon, a retired psychotherapist familiar with managing insurance claims, kept a binder full of receipts, emails, texts, and logs of phone conversations with State Farm agents.
Three months after the crash, State Farm finally agreed to an independent inspection, Haddon said. The new estimate came in at under $7,000.
“It feels like a win,” Haddon said, “but it was a battle we shouldn’t have had to fight.”
Delong agrees. He also warned that pushing back against your auto insurance company will not always work.
“If you push back against the insurance company, they may dig in their heels,” Delong warned. “They might drag out the process, hoping you’ll get discouraged and give up. Or they may propose going to court if no agreement is reached.”
The Consumer Federation of America offers tips to save money on auto insurance.
If you believe your insurance company is treating you unfairly, file a complaint with the Florida Office of Insurance Regulation.
