QuestionQUESTION: Involved in an accident other party at fault. Nationwide informed us that our vehicle had been totaled in the past and had a washed title. After doing some of our own research we have found that not to be true. The vehicle had been in an accident previously, however, was never issued a salvaged title.
It appears that 25% damage was done, the bumper had to be replaced, partial paint and airbag deployed. Was fixed, inspected by the state that the accident was in and at some point crossed state lines into the state of NC.
We were given a figure of 5,000 had the vehicle not had a washed title but since it had been totaled the value was now only 2,500. Now that we know from the state of NC DMV that this is not the case what percentage of the 5,000 should we expect. Is this fraud since the adjuster said that it had been totaled but in actuality had not? The retail value according to NADA is about 5,500.00
ANSWER: Hi Ann,
If, as you said, after the vehicle was repaired it was inspected by the state, that would mean that the vehicle was totaled. The state does not inspect vehicles unless they are rebuilt total loss vehicles. Although the adjuster may have used an incorrect term, I do not think it is fraud.
You should run a CARFAX history report. It is worth the $24.95 to find out for sure.
If the vehicle had been previously totaled and rebuilt, its value would be reduced by about 50%.
I hope this helps
Richard Hixenbaugh
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QUESTION: Very interesting because according to NC DMV there is a difference in a vehicle that has had 25% damage and a vehicle that has a salvage title and a salvaged title was never issued by either state. Would there be a reason for that? Or does 25% automatically deem a vehicle salvaged?
AnswerHi Ann,
Generally, for a vehicle to be declared a total loss, the cost of repairs would exceed 70% of the value of the vehicle.
North Carolina requires disclosure on the title at the time of sale of repairs of 25% or more. This does not require a salvage title, it is only for disclosure purposes so that a potential purchaser is aware of the damage.
As I previously stated, you should obtain a CARFAX report. It will show you if any state issued a salvage title. It will also tell you when the accident occured and may possibly indicate the extent of the damage. You can also ask Nationwide to provide you with some more specifics. If they claim the vehicle was totaled, ask then for the state where this happened, the date of the accident and who was the insurance company that paid the claim. Another source of information would be www.choicepoint.com . This is a company that has a database of all auto insurance claim. They offer a consumer report based on the vehicles VIN # which may also be helpful.
I hope this helps
Richard Hixenbaugh
