QuestionQUESTION: I was involved in a car accident. I was at fault. I only have liability coverage. My question is....Can my insurance declare my vehicle a total loss even though I'm paying for the cost to repair my vehicle?
ANSWER: No. The State regulates whether or not your vehicle must have a salvage title, but for the most part, if you pay for it yourself, you will not run into any problems. Only licensed dealers, repair facilities, and insurance companies are required to report damages to the State, in almost every State.
JP
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QUESTION: Even though the Insurance sent an adjuster and there report came out that repairs cost more than the value of my vehicle?
ANSWER: Yes. Anyone can choose to repair a vehicle if they wish, no matter what the insurance company says.
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QUESTION: So you're telling me, even though my insurance wants me to file for a salvage title because there adjusters report claims that repairs exceed the value of my vehicle (which they don't and because I only have Liability coverage I'm paying for repairs ) I don't have to file for a salvage title? I didn't even get a chance for a second opinion. Can I do something about this? Thank you
AnswerJesse,
I don't know what State you are in, but generally what I am telling you is correct. Why are you even dealing with your insurance company any more on this? I would cut them out of the loop. If you will tell me what State you are in, I will look up the relevant law/statute that dictates who and when a salvage title is required. Without knowing what State you are in, I cannot give you a concrete answer. Almost every State has a statute about salvage titles, and the statute normally requires an insurer who is "paying for a claim" to report any vehicle that meets certain criteria and file a certain form that will "flag" the title for when it is sold. If ownership never changes hands, then the title never changes. You should be fine if you repair the car and keep it. If you repair it and sell it without "flagging" the title, then you may be violating some statute. Tell me the State and I will tell you your answer.
JP
