Auto Insurance Claims: can I demand repairs (in excess of 60% value) in lieu of totaling?, total loss help

Question
I was in an accident where I wasn't at fault and my car has body damage approximating 60-80% of its value. All indications are that the insurance company intends to total the car, have me sign over the title, and give me "fair mkt value". I do NOT want my car totaled. Do I have the right to refuse the "totaling" and demand that my car be repaired? Alternatively, I would be happy with just the fair mkt value of the car provided that I can keep it.

Answer
Richard,

  Depending on the State where this claim is being handled, the rules differ.  Normally it is up to the insurance company to determine whether they want to repair the vehicle or pay it's actual cash value.  You can not normally dictate how they handle this.  There are options, though.

1.  Attempt to get a repair facility to do an "agreed repair".  If the shop will repair the vehicle for a set amount and guarantee that there will be no "supplemental" repair costs, it is likely that the insurance company will work with you.  Sometimes they won't, they don't have to.

2.  You are the owner of your vehicle and you can keep it if you like.  Again depending on the State where this occurred, you may be stuck with a salvage title, but you can keep your vehicle.  It would be wise for you to negotiate the salvage value and request strict proof of the salvage value as it will be deducted from the ACV.

3.  In lieu of an agreed repair, authorize the insurance company to use refurbished / aftermarket / lkq parts to decrease the cost of repair.

4.  If this is your own insurance company that you are dealing with, there is likely an appraisal clause in your policy that allows you to "challenge" the determination of the Actual Cash Value by hiring an independent appraiser and having your appraiser and their appraiser agree to the fair settlement amount with the help of an umpire.  

    Handling a total loss claim is more complicated than it seems.  If you need further direction, remember that information is always free at Petty Details, LLC.  Look us up on the web if you want personal one on one, free consultation.