Auto Insurance Claims: Total Loss Settlement, blue book value, loss settlement

Question
Mr. Painter - My car was hit in front of my house a few nights ago and the damage to the car is more than the value of it and so the insurance company is considering the car a total loss. The claims adjuster called me today to inform me that the car has a branded title and was considered a total loss previously, but was repaired. He said that because of this the value of the car was greatly affected and they are going to give me only a $1000 settlement. The blue book value of the car is between $2500 and $3000. Since I was in no way at fault and had a perfectly good running vehicle until their insured hit my car I think I should be able to get the blue book value for the car. My copy of the title does not note that it was a 'reconstructed vehicle'. Do I have any recourse for arguing this point with the insurance company?

Answer
Hello,

Branded cars are worth 30-40% less. You may have a duplicate title, but obviously the insurance company knows the history of the vehicle.

You have no recourse. Many peple buy refurbished vehicles at a lower price, but never think ahead as to what happens if the car gets totalled no matter who is at fault.

The insurance company is not going to pay blue book on a vehicle that is branded salvage.

In fact, I have seen when such a vehicle is reported stolen, the insured is accused of being party to the crime because he would have made out getting blue book instead of salvage.

Bottom line, I feel bad for you, but there is nothing you can do. Even if taken to court, the court allows you to be made "whole" and in your case, the ins company is doing just that on a branded vehicle.

Having a salvage car can make it affordable for a newer vehicle, however when disaster strikes like it has done to you, you are basically out of luck.


Rob