Auto Insurance Claims: ACV > property damage coverage, property damage insurance, property damage coverage

Question
Driver hit my car which was declared totaled by her insurance (She was at fault). Her insurance determined ACV of my car to be at $6,500, but wants title of my car and give me only $5,000, claiming the insurer only had $5,000 in property damage insurance.  (1)If I decide to purchase car back from insurance, is the salvage value deducted from the ACV or the $5,000?  (2) Could salvage value be more 20% of ACV (Insurance has not come back with a salvage value)  (3) Are there any additional costs.  Thanks a lot.

Answer
I think you are better off retaining the salvage.  They will estimate the salvage value and deduct that from the $6500, not the $5000.

Here's an example.  Let's say they estimate the salvage value is $1000.  Your claim would be worth $5500 (6500-1000).  But they won't pay more than the policy limit of $5000.  So you get the $5000 and the car.  You can use the $5000 to repair some or most of the damage.

This is an unusual situation and a bit confusing.  It is possible your adjuster will calculate it wrong.  Make sure he/she calculates it this way.  If not, complain to the supervisor.

If you think they are being unfair, you can complain to the state department of insurance.

Couple things to watch out for:  make sure they don't over-estimate the salvage value.  They will call salvage / junk yards and describe the vehicle and damage, and then the salvage dealers will give them a suggested value.  You should do the same to make sure they estimate it fairly.

Also, check with your insurer to see if they will cover your damages under Underinsured Motorist coverage, which varies by state.  Also, if you have collision coverage, they'll cover the full amount.