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Insurance Dispute


I own a 2002 explorer that the engine hydrlocked from flood conditions, after the insurance company hired a special investigator and then a forensic investigator they approved the claim to replace the engine as it was ruined.

The dispute is that they only want to put a junkyard engine in it. My dispute is that no one by visual inspection can determine the condition on the used engine or maintenance of the engine and no warranty is offered. If it goes in a month it’s on me.

This does not seem to be fair.

I am asking that they replace the engine with a remanufactured engine as this can be said to be as equivalent as what was in there if not better.

I am disputing the junkyard engine and not willing to except it as it could be setting me up for a big bill$$ do i have to except the junkyard engine if it has around the same amount of miles? The junkyard engine is 1500.00 and the ford reman Engine was 3071.00.

I should have the availability to put genuine ford parts back in vehicle but I found a reman. For 800.00 more than what the junkyard one is and that is what I am asking for. What are my chances of pursing this in court and how does one sue an insurance carrier? Small claims?


Hi there,

I understand your position. This is perhaps one of the most unfair scenarios. Insurance companies have strong arguments against your claim. In your policy you agree to be "paid" for all reasonable and necessary damages.

What is that mean?

Well, that is the debate. Insurance company will tell you that the owe you for what is reasonable and for what you had before the accident. You had a used engine, you did not have a brand new engine. You already had mileage on it. Therefore, you are owed that same engine, not a new one.

They will also try to get you a non Genuine Ford Part because they are too expensive. They argue that this is non necessary. They are giving you a better repair or a newer engine than you have and the trade of is that it is non genuine.

Is this legal?

Yes, but it is unfair. What are your chances in court?

Well, that is a tough one. Insurance companies are tough negotiators and it is possible that in the policy you agreed to a mandatory arbitration clause. This means that you must go to arbitration and not to court. If you go to court, you will be in breach of the contract. Arbitrators are usually insurance adjusters and most likely will side with the carrier.

Read your policy carefully and see if you are bound to go to arbitration. This is where the big issue would be.

Good Luck,

Follow Up Question

As it stands now I have purchased a non oem replacement remanufactured engine. From what I have read a remanufactured engine is still considered a used part and not new even though it would be better than what I had.

y argument is that they cannot say the LKQ "salavage" engine is as good as the engine I had as I changed the oil every 3000 and have owned the vehicle from new.

I have talked with a mechanical engineer and there is no questions that there are to many variables to a salvage as to the quality that I could be setting myself up fro a huge repair bill if the engine turns out to have had flaws that cause expensive repair bills.

just because this is the cheapest way for the insurance company to go it should not be the legal way as the can not say it is a LKQ part.

I checked the policy and yes I have an apprasial clause. should I pursue I am asking for the 800.00 differnece from the non oem re manufactured engine i purchased and the 1500 salvage price they gave.


You can always ask. You never know when they turn around and give you a check. Sounds like you have done your homework, and that you can defend your rights. You lose nothing by asking.

Good Luck,

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