Auto Insurance Claims: Hail damage, salvage title, hail damage

Question
Dad does not want to lose his 2003 Dodge Intrepid, we have severe hail and his vehicle was totaled by the insurance company adjuster.  We also have Gap through our lender is he going to lose his vehicle?  He just bought the car in May of this year 2007

Answer
Hi Jerri,

When a vehicle is declared a total loss, the insurance company will pay the fair market value of the vehicle. They are essentially buying the vehicle from you. They then take the vehicle and sell the salvage.

Your dad may have the option to buy back the salvage from the insurance company but they will deduct from the settlement what they could have sold the salvage for. Your dad would then have to have the vehicle repaired. The insurance company will still have to apply for a "SALVAGE" title. Once repaired the vehicle will only be worth half of standard value due the "SALVAGE' stamp being permanently affixed to the title.

I hope this helps
Richard Hixenbaugh