Can you keep a totaled car?

by Guest » Thu Sep 06, 2007 06:18 am
Guest


When your car is beyond repair because of an accident or costs more than the Actual Cash Value (ACV) of the car, it is considered totaled. When a car is totaled, only the salvage value of the metal is considered when determining the value of the car.

How is a car determined to be totaled?

Whether a car is totaled or not can be defined by keeping in mind these 2 different perspectives:
  1. The Individual's point of view: For an individual a car is totaled if the damage is beyond repair or if the owner cannot afford to get the car repaired. This usually occurs when the owner has only the minimum amount of insurance.
  2. Insurance point of view: A car is 'totaled' if the cost of repairing the car exceeds the cost of replacing it. Insurance companies consider only a percentage of the current worth of the car, and it is important that individuals are aware of the percentage their insurance companies will consider. Normally the percentage insurance companies deem the car totaled ranges from 51% to 80% of its current market value.

Settlement procedure for a totaled car

An insurance adjuster inspects and photographs the damaged vehicle to determine the degree of damage and the cost of repairs compared with the value of the car in its current state.

If the cost to repair the car exceeds the percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement will take into consideration a few other factors like:
  • The make of the car.
  • The model.
  • The condition of the car and the mileage it has.
If the cost to repair the car exceeds a certain percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement again will take into consideration few other factors like:
  • Make of the car
  • Model
  • Condition of the car and the mileage it offers
  • Comparison with other similar vehicles in the same area
Essentially, the insurer is looking at the Blue Book value of your car. The settlement may include sales tax, title, and registration fees of the car if your state law requires it to.

How to keep your totaled car

Even if your car has been deemed 'totaled' you might want to keep it. In this case you have to convince the insurance company to let you keep the car. However, you can try one or few of the following tips to be able to keep a totaled car:
  • Talk to your insurance claim adjuster and fight for your car. Remind the agent that you are the one paying the premium and that you have the right to change insurance companies.
  • Document all maintenance performed on your car. This will help you decide whether or not you should accept a particular settlement offer.
  • Insurance companies offer their own choice of repair shops. Use your own discretion. However, do your own research and also on the repair shop suggested by the insurance company.
  • If you wish to retain your totaled car, the adjuster will deduct the salvage value while determining the final settlement offer. You may try negotiating with your adjuster to settle for a lower salvage value of your car.
  • If you want to know the ACV of your car, don't depend on your insurance company. Get a second opinion, and do your own research online or at your local library.

Related readings

Hi all, I am in a trouble. I was in an accident some days back. Although, none was hurt but it has caused a great damage to my car. I had approached to my insurance company and filed a claim. Now my insurance company wants to ‘write off' the vehicle. My question to the community is- when is a car considered totalled ? What are my chances if I want to retain my vehicle? Will the insurer compensate me under such circumstances?

Carclaims

Total Comments: 152

Posted: Wed Jul 02, 2008 12:42 pm Post Subject:

:lol:

even though they can misquote sections of law from memory. Yes I did say misquote, because they will tell you one thing but then cannot show you the section of the law that it came from.

:lol: ain't that the truth! :wink:

It would be really odd that a company as large (number one!) as SF wouldn't have themselves protected..I'm sure they do... :wink: I'm betting that there are laws on all the books (somewhere) that cover this...you can bet it's been challenged....I have never heard of a company ever settling a total loss without getting title...or of some charge (some times it can be just the tow and storage) for owner retain.

What he's talking about internal documents are like 'claims standards' or SOP's etc....


I am however surprised that it isn't right there in the policy, I have no access to a state farm policy so can't ''look between the lines'' (there is actually an knack to reading those darn things! :roll: )

I'll try and do some noising around KY law this weekend and see if I can find anything....

Posted: Wed Jul 02, 2008 02:37 pm Post Subject:

I can help you out regarding KY law.
806 KAR 12:095. Unfair claims settlement practices for property and casualty insurance. (Section 7, SF has never offered a replacement vehicle and we have not deviated from section 1)
KRS 186A.530, when you read section 3 keep in mind that my vehicle has not been transfered to SF and that we are keeping the vehicle. Section 7(b) refers to my situation.
Google "Kentucky Revised Statutes"

Posted: Wed Jul 02, 2008 04:39 pm Post Subject: car totaled?

I have recently had a fender bender in my 97 mitsubishi eclipse. It has 145,000 miles. The KBB value is $3200 and I just had an estimate done for $2700. I live in Indiana. I am wondering if my car will be considered a total salvage? It is driveable. I just talked to the ins company and they are sending an adjustor out to take a look. I am new to this and am wondering if they say it is fixable whether I should challenge that decision. I would rather it be totaled out so I can use that money towards a new vehicle. Any advice would be appreciated!!

Thanks!

Posted: Wed Jul 02, 2008 04:39 pm Post Subject:

BTW, I have asked many SF employees high up in the company and they all said "There is nowhere in the policy that states that we own your car after we pay you the ACV or that you owe us a salvage fee if you decide to keep your car. It is just always done that way." I'm sorry but I don't accept that as an answer.

I think you need to consider that the insurance owes for the "loss" and that there is a definition of "loss". If the owner retains the salvage, should the value of the salavge be a part of the "loss". the policy does not state that it _will_ pay the ACV on the vehicle, it states that it will pay _up to_ the ACV for the "loss".

Can an insurance company insist on taking possesion of a total loss vehicle? Nope. can they then deduct the salvage value of that vehicle? Yup! As it's no longer part of the "loss".

Posted: Wed Jul 02, 2008 11:34 pm Post Subject:

Another great way to explain it T thanks....

Waiting in Indiana, Your vehicle may be a total loss. with the figures you have here, it's borderline, the adjuster may write a shorter or higher estimate...as it sets now it's on the edge....check NADA or Edmunds...no company I know of uses KBB....

I am new to this and am wondering if they say it is fixable whether I should challenge that decision. I would rather it be totaled out so I can use that money towards a new vehicle. Any advice would be appreciated!!

It never hurts (in a very nice way) to say to the adjuster, 'ya' know I pretty much hope it totals, I'm ready for a new car'' some times we work so hard trying to save one, I ALWAYS like to know (and generally ask) which way an owner 'wants' it to go..total or fix....so let them know when he/she comes to look at your vehicle..

Posted: Thu Nov 06, 2008 01:54 am Post Subject: car accident

I was involved in a wreck today, the other person was at fault. I still owe 4600.00 on the car, kelly book has it valued around 5600.00 if its totalled how will i come out? How much will I get after paying off the loan? Im hoping it can be repaired.

Posted: Thu Nov 06, 2008 06:07 am Post Subject:

Hi ioosw, the members have replied to the tread that you have on the same topic. I'm posting the url below for your convenience. Pls check the replies on it and ask the community back if you have more queries.

http://www.ampminsure.org/auto/total-car-loan.html#34465

Thanks,
Lakemen

Posted: Tue Apr 14, 2009 11:40 am Post Subject:

.
.

I'm more than a little curious...

In the quotes below... why are the terms "or part" and "of any item" included in these quotes??

What purpose could these added terms serve when settling a claim??

MO standard auto police says regarding coverages F&G (collision and comp), under the heading, Claim Settlements... Quote:

"If we elect to pay the comparable value of any item we will do so only if the owner of that items signs and delivers to us all legal documents we may request to give us full ownership of it..."


and (cause I know it's coming)
Comparable Value means:

Quote:
a)The depreciated worth of the vehicle or part imeediately before the accident
b) plus any sales tas, luxury vehicle tax based on the depreicated worth of the vehicle or part immediately before the accident
c)plus any other taxes or fees you must incur to acquire ownership of another auto or part to replace the damaged vehicle or part with one of equal value.



Now of course if a person fails or refuses to sign over a clear title (and have had this happen it's lost or something) then the adjuster issues payment to the owner MINUS the salvage value,

Posted: Tue Jul 14, 2009 05:04 pm Post Subject: Value of suv

I had an accident in my 2007 experdition el. It has close to 80,000 miles. I am not sure of the bb value of the car because there are none with the number of miles that i have. What percentage will the insurance company be willing to fix with a suv with this number of miles and when should it be considered totalled? Thanks!

Posted: Tue Jul 14, 2009 05:15 pm Post Subject:

It isn't necessarily a percentage as a few of the adjustors on the site have explained. It depends on what the salvage bid is, and it also depends on the Actual Cash Value of the vehicle. Few companies use Kelly Blue Book. Although your vehicle has relatively high miles for its age, it probably isn't considered so excessive that it would dramatically decrease the value (there will be a mileage adjustment).

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