Auto Insurance Claims: hail damage ins.co.wants to total it, hail storms, hail damage

Question
We purchased a car a year ago for $5,000 and had so much hail damage ins.co.adjusters wants to total it instead of repair it.  It's from a catestrophic hail storm.  Why on ins.totals do they get to take so much out for themselves if we buy the car back.  They want to take about $950 out for themselves if I do not want to sell it to them.  I own it completely. I checked around and no car lot can come near same type car if they do exchanges on hail damage from catestrophic hail storms.  I would like them to just repair it but they will not.  Why does our laws on catestrophic hail damage to a car does the insurance get to pay so little when before the claim it had not come down in value in reality as the miles are only in the 80,000 range on a 2001 car.  I spoke with several dealers today and they said that my type of 2001 car dealers are actually raising the sales price of my economy type 30 miles to the gallon type car as high as $1,800.00 more instead of depreciating cause it is economy on gas not a gas guzzler.  We want to keep it as it runs great -- just needs the hail dents repaired.  We had full coverage on it and now they won't even give us a rental which was in our policy to have the dents repaired if we have it fixed and even then they want to give it a salvage title where we own the title now completely -- paid cash for it.  What's up with the insurance adjuster getting to want to take $950.00 for themselves for me to buy back my owned vehicle on something they don't want to repair on a catestrophic hail storm?

Answer
Hi Sue,

The decision to either repair or declare a total loss is solely up to the insurance company. It is purely a financial decision. Generally if the cost to repair is 70% or more of the value of the vehicle it is considered a total loss. When a vehicle is declared a total loss the insurance company is essentially buying your vehicle from you for the fair market value. They woud then own the damaged vehicle and would sell the salvage to recoup some of what they paid out. When you decide to keep the vehicle, you are essentially buying back the car from the insurance company. In this case the insurance company is charging you $950.00 to buy back the vehicle because this is the amount they anticipate they would have been able to sell the salvage for. When an insurance company totals a vehicle they are required by law to obtain a salvage title. Regardless of your rental coverage, insurance companies are not required to pay rental on totaled cars.

I hope this helps
Richard Hixenbaugh