QuestionThank you in advance for trying to answer my question. My 19 year old son was just involved in a collision with one of our vehicles. The other party admitted fault to the policeman and witnesses verified the other party's fault. Our vehicle's axle appears to be broken in addition to other extensive damage. Our vehicle has a salvage title and I am wondering how the insurance company may handle the totalling of the car. We do not have a bank loan for the car, but have a $6,800.00 credit card loan. There is a $500 deductible involved. Will we be penalized in any way because of the salvage title? I told our agent when we bought the car that it was a salvage title and she said that wasn't a problem. I appreciate your help. Also, why should I have to pay the $500 deductible when the other party is at fault? Shouldn't his insurance company have to cover my deductible?
AnswerHi Cindy,
A salvage title usually reduces the vehicle's value by 50% as opposed to the fair market value of the same vehicle with a clean title.
As long as the car is repairable, this has no major bearing.
However, if it's a total loss, you will be paid a much lower price because of the salvage title.
If the car is a total loss, you should file claims with both companies and settle for the highest offer.
Anytime that you are having your own insurance company repair or total your car, it is always done less your deductible. As soon as they recover from the at fault party, they will reimburse the deductible to you.
I hope this has been of help, please write again if I can be of more assistance.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 12-23-07 12:40 PM PST
