QuestionI realize that there is a general rule of sorts that when a repair costs more than worth of vehicle it is considered a total loss. However, What is considered to be the worth of the vehicle? Low blue book? high blue book?
I ask because I have a 2001 toyota tacoma xtra cab Sr5 pickup that was just in an accident. Front end damage, NO frame involved, completely repairable. My truck is PRISTINE and I am sure that if I were to have put it on the market I could easily have netted $9K-$10K for it. Low book gives it $6900.00; repair shop called repairs $7800.00.
Why would insurance company want to pay out fair market value over repair cost? Unless they plan to stick it to me and not give me what is fair.
The other thing that concerns me is that this insurance company is using a firm for their evaluation that I looked up online only to find that the firm is actually a sales company that sells insurance cars!! That disturbs me!! Should it?
I know I have the option of getting my own appraisal done and all that but it bothers me that my insurance company is pushing so hard and so fast for me to settle with them. What is up with all this?
AnswerHi Trish,
Insurance companies will generally declare a vehicel to be a total loss when the cost to repair is at or above 75% of the value of the vehicle. If your vehcle is worth say $9500.00 then the point at which it is a total loss is $7125.00 repairs which you have already exceeded.
As for determining the correct value, guidebooks are just that; a guide. You should go to www.autotrader.com and look for currently for sale vehicles like yours. Look for same year, mileage, options. Locate at least 3 and print and present the info to the insurance company to help you negotiate a fair price. Remember the insurance company is only interested in doing what is in their best interest not yours.
I hope this helps
Richard Hixenbaugh
