QuestionQUESTION: Hi, my car is totaled. The insurance said to let me keep the salvage at a cost of 10% or $500. What does it mean in the offer? Will it be deducted $500 or added additional $500? Thank you for your answer.
ANSWER: Hi Ray,
It means that they will deduct $500 from the offer that they have made.
They will also take the title and have it re-issued with a SALVAGE statement added by the motor vehicle department.
Before you can drive it on the road again, you will have to repair it
and motor vehicle department will require that it pass several safety inspections at your expense.
Even if you have it perfectly repaired and it passes all the safety inspections, the SALVAGE stamp on the title reduces the value by 50% as opposed to identical cars of the same year, make and model.
Most insurance companies WILL NOT put comprehenhive or collision on a car that has been salvaged.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
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QUESTION: Thank you for your answer. It seems not worth of retaining the totaled vehicle, right? The value of the vehicle is determined by the insurance $5000. I do not know why the insurance wanted me to retain the vehicle so that they can deduct $500. Can I choose to let the vehicle towed away? If so, I only need to send in the vehicle title, right? After the offer for the property loss is accepted (but the bodily injury claim has not been settled yet), the insurance will send me the release form for the property damage first or with the checks together?
ANSWER: Hi Ray,
I agree with you, it's not worth the hassel to try to put the car back together and have it's value reduced by half.
Tell the insurance company to tow the car away and that you want to meet with them to sign the title over to they, sign the property damage release and pick up your check.
Best of luck,
Bennie
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QUESTION: Hi, can I ask you one more question? If the insurer deducts the salvage value such as $500 in my total loss case, must the insurer provide me with a salvage dealer who will purchase the salvage for the amount deducted or the insurer has no obligation to do so? I do not know whether there will be a salvage dealer who is willing to pay the same amount that the insurer deducted.
AnswerHi Ray,
Based on past experience, the $500 is what the insurance company estimates they can receive for it.
Insurance companies do not ususally sell to local salvage dealers, but have the car towed to a location where they have closed auctions to sell totaled cars. The only people who can bid on these cars at auction are ones with dealer resale licenses such as salvage yards and body shops.
I'm afraid that the insurance company will not be able to make a referral.
Bennie
