Auto Insurance Claims: accident with a salvage titled vehicle, salvage title, credit card loan

Question
Thank 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.

Answer
Hi Cindy,

A vehicle with a salvage title is generally only worth about half of standard value. Some insurance companies will cap the deduction to only 30%, while others will deduct as much as 60%.

Once the value is established, the insurance company should pay that value plus sales tax less your deductible.

I hope this helps
Richard Hixenbaugh