Wednesday, February 21, 2007

Nationwide Is Not On My Side...

I just got back from meeting with the insurance adjuster. It looks like Nationwide is considering my truck totalled after a car crashed into a couple weeks ago while it was parked in front of my house. The cost of repair is greater than the value of my truck.

My truck is still drivable but the driver side door is not very pretty. I can keep my truck and Nationwide will pay me ~ 70% of its market value. Being that my truck is a 1996 model, that's 70% of not very much. Unfortunately, as a grad student my current salary does not warrant me going out to buy another vehicle, so it looks like I'll be driving a truck with a dinged up door for some time.

Financially, I understand Nationwide's policy, but economically speaking they are obviously making me worse off. If I wanted the market value of my truck instead of my truck, I would have sold it a long time ago. In a fairer world, it seems that they should meet me somewhere in between the repair cost and the market value so that we both be better off.

On a more positive note, I will try to make the best of the situation. I should find out in the next couple of days how much I'll receive from them. My truck may have a higher value than I originally thought which means it might be enough to keep me debt-free for at least an extra semester or two. Alternatively, I could use the money to get a 24-inch iMac, a nice digital SLR, use it to fund an overseas trip or two, or put the money towards a new car. Maybe some type of mixed-strategy approach would be best?

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