QuestionRichard,
I live in Texas.
Background: I own an older car, was hit and I am going through the at fault drivers insurance. Since I do not have collision on the car my insurance agency has not been very helpful.
Damage to hood, front bumper, and front headlights. No other internal damage that I can see. Insurance adjuster totaled the car but it still drives great and can be repaired. I have a repair estimate that is less than what they are offering me as a settlement. However, if I accept their settlement they keep the car. I can't replace the car for what they are offering me. At this point I want to keep my car and avoid the "salvaged" title. The Texas DMV says that a car is totaled when the cost of repairs is more than the fair market value. However, I have read other equations for calculating salvage value. For ex, repairs equal 80% of the value, or repairs + salvage value means they total the car.
I want to bargin with them but they are not budging. They are offering me a fair market value that is lower that the private party value in my area plus they get to keep the car and sell it. Again, the car is really not that bad of shape.
So in summary:
1)How does All State in Texas calculate/determine if a car is totaled? Shouldn't there be a standard for the insurance agencies? I have read numerous ways. Is it the state DMV that determines the formula or can insurance agencies have alternate methods?
2) I have not signed or agreed to a settlement for property damage. Can they start the salvage title process without my consent or receipt of a settlement check? When I mentioned keeping the car they said that it is going to have a salvaged title. However, I can provide estimates that show I can fix the car for less than their fair market value. Also, they are adding in 25% to the cost of repairs for hidden damage. I am confident that there are no hidden damages and I am willing to take that risk by signing a release of all claims once a settlement is reached.
1) What is the acceptable calculation for determining if a car is totaled in the state of Texas.
2) If I can fix it for less than the fair market value can I avoid the salvage title? Can the insurance agency deny or otherwise dismiss my repair estimate?
3) Can they start the salvage title process without me receiving a settlement check?
Thank you very much for your time.
AnswerHi Lance,
Unfortunately, the decision to repair or total a car is solely up to the insurance comapny. You, the vehicle owner have no say in the matter. That is because the insurance companies themselves write most of the insurance laws in the country.
Most states sy that an insurance company can repair a vehicle upto its value. However it is the industry standard to total a vehicle when the repairs are 70% to 80% of the value. The standard in Texas is usually 75%.
If you do not agree with the anount they are offering you, it is up to you to refute the amount. You can hire an independent appraiser to determine the value of your car and you can use that appraisal to negotiate a better settlement. An appraisal will generally cost you between $200.00 to $400.00. Ultimately, if you have proof that the value is higher and they still will not negotiate with you, you would file a law suit against the at-fault driver. If the judge then says you are owed a certain amount the insuranc company will have to pay it.
You could ask the insurance company to issue you a check for an amount that is below the point the car would be totaled. Then no salvage title would be issued.
They can not start the salvage title process until you provide them with your signed title.
I hope this helps
Richard Hixenbaugh
