Auto Insurance Claims: They declared my car totalled, honda civic lx, kelly blue book

Question
Hi my question is somewhat simple. I got into an auto accident recently and I only have liability insurance. I planned to pay to get my car fixed and still use it. The two estimates I got for the damage done to my car are 2,500 an 3,000. I have a 4 dr 1998 Honda Civic Lx with only 74,000 miles on it. Kelly blue book also puts my car value at over 6,000. The problem I have is that the insurance declared my car a total loss and I'm scared that it means my car will be a salvage title. Can you explain to me how the whole salvage title thing works and what I can do to fight the insurance if it will be considered salvage just because of them declaring the car totaled. I don't think it is totaled and I don't think it should be a salvage title. Please help me!

p.s. I live in california...i that matters

Answer
Hi Reonna,

An insurance company will determine a vehicle to be a total loss if the cost to repair it is bot than 70% to 75% of its value. So the first thing for you to do is to research the value of your car. You can not use Kelley Blue Book in California. You must search for currently for sale vehicles like yours. You can check www.autotrader.com and do a search based on your zip code. Due to the age of your car you may have to expand the search up to 100 miles to find a sufficient number of cars. Remember, that you need to be realistic in terms of the condition of your car. If there are dents, dings, stained seats or carpet, etc., all of these things will reduce the value below standard retail value. A dealer will usually spend a few hundred dollars tobring a vehicle up to retail standards.

If even after you do this it is clear that the vehicle will be totaled, the insurance company should pay you the fair market value of your car plus sales tax and they will take the car and sell it for salvage. You may have the option to buy the car back the car from the insurance comapny but they will deduct from your settlement the amount thet they would sell the salvage for. You would then have to have the vehicle repaired and then have the vehicle inspected by the state, then you you would be able to re-title the vehicle in your name, however, the vehicle would always have a "salvage" or "rebuilt" stamp on the title. As a result the vehicle would only be worth about half of standard values.

I hope this helps
Richard Hixenbaugh