QuestionI recently opened a claim for my vehicle where my insurer told me that the damage was 80% of the vehicles worth, so it is to be considered a total loss. The vehicle was financed for 3 years and I've only had it now for 3 months and don't want to part with it. I did get into somewhat of a disgruntled conversation with the agent on the phone about how to handle this situation. When I took the car for a second estimate through a dealership, they appraised it for more than a 1000 from what my insurer did and found an estimate lower then the insurer quoted me. My question to you is how this is possible? Also I'd like to ask the question, if I were to except the vehicle as a total loss and pay the difference on the loan to my lienholder or bank, how can I keep possession of the vehicle and get the title so I may still try to fix it on my own after it is all over with?
I was the third car in a rear ender where the first car who slammed the breaks try to make an illegal left turn and then fled the scene after the accident.
I firmly believe because I have full coverage on the vehicle and in light of the situation I think they are really trying to screw me over here.
AnswerHi Alexis,
Virtually all insurance comapnies will declare a vehicle a total loss if the cost of repairs is 70% to 80% or more of the value of the vehicle at the time of the collision. The decision to repair or total the vehicle is solely up to the insurance company. The vehicle owner has no say in the matter. They legally could total your car if it had just $1.00 in damage. Of course it is purley a financial decision so this would never happen.
It is not unusual that you could have different estimates from different sources. However the insurance company estimate will generally be the lowest. If the shop you went to had a lower estimate, they either did not write an accurate estimate or they were intentionally comming in lower to try to get the job.
You can keep the salvage if you want to but I would recommend against it. The insurance company will still have to apply for a salvage title in their name. Then thay will sign it over to you. You will then have to have the repairs completed and then pay a state inspector to sign off that the vehicle is roadworthy. If it passes, then you can apply for a title in your name. However, the title will always have a stamp on it that will say SALVAGE, REBUILT SALVAGE, REBUILT, or something like that. That stamp on the title will render the vehicle's value to be cut by 50% and will make it hard to get insurance.
Yo need to be sure you're getting a fair price for the car. You should do some research on www.autotrader.com . Get a good idea what your vehicle is selling for before you get an offer from the insurance company. Then if they try to lowball you, you will be prepared to negotiate. If the insurance company will not negotiate with you, you may need to hire an independent vehicle appraiser. If that becomes necessary, contact www.collisionclaims.com
I hope this helps
Richard Hixenbaugh
