by Car Insurance Guy » Sat Apr 04, 2009 04:49 pm
I just got a question on my site about a totaled car from a hailstorm. I want to say he will need to get a salvaged title if he accepts their offer - but I wasn't sure. I've reposted the question in it's entirety. Thanks for anyone who might know!
I live in Austin, Texas and recently experienced a severe hail storm. I am scheduled to see an adjuster next week (all three of our family cars were damaged) and have been told by friends that my older car may be "totaled."
Mhy question: what does it mean to be totaled and what options will I have? Do I have to accept/reject their offer on the spot? If I accept, do I have to surrender my car? What should I know/do before meeting with the adjuster.
Posted: Sun Apr 05, 2009 05:41 pm Post Subject:
what does it mean to be totaled and what options will I have?
your car is totalled means actual cost required for repairing the vehicle is more than 80 % of current market value of the car.so it is not economical advisable to repair the car and the owner should go for a new car alltogether.
options will I have?
you have two options.1 keep the car with you and then and get some money with deductibles from insurance company. or......
2.Just inform the insurance company that you are no longer interested in the vehicle and thus ask from them the adjustable value of the vehicle without deductibles.
Do I have to accept/reject their offer on the spot
Its not necessary that you need to give the decision immediately to the adjuster. they will surely give some days to you in order to take the decision. :wink:
Posted: Mon Apr 06, 2009 04:58 am Post Subject:
Yes, I agree with amit.
what does it mean to be totaled and what options will I have?
Totaled means the total amount for car repairing is 80% of the brand new car in market.So its not a economical . buy the new car is better than repair a car which is bad condition.
There is two option as the amit says.
Do I have to accept/reject their offer on the spot
I think they will give you take some days to take decision but i think you may reject this offer.
:P Thanks..
Posted: Mon Apr 06, 2009 05:15 am Post Subject:
what does it mean to be totaled and what options will I have?
When a car is declared totaled it may have 3 main implications:
There are some insurance companies who would total a car at 51% of its actual worth and some would total it at 80%. Insurance companies usually determine a car's actual cash value (ACV) from the propriety database of prices that they have.
Do I have to accept/reject their offer on the spot? If I accept, do I have to surrender my car? What should I know/do before meeting with the adjuster.
If you accept their offer you will have to surrender your car, yes. But if you don't you will have to let them know. But the fact is, you have entered in to a contract with your auto insurance company. Your contract must be mentioning that you cannot claim more money from your insurer for your car than it is actually worth. But if your car is totaled, your insurer still needs to pay you the car's actual cash value after subtracting the deductibles and a certain amount the company would have got for your car at the salvage yard.
If you keep the car, you will have to pay for its repairs yourself. You can use up the money you receive from the insurance company and pay some of it out-of-pocket.
Posted: Tue Apr 07, 2009 10:01 am Post Subject:
But if your car is totaled, your insurer still needs to pay you the car's actual cash value after subtracting the deductibles and a certain amount the company would have got for your car at the salvage yard.
Do the carriers assume the KBB value as the ACV?
Posted: Tue Apr 07, 2009 10:42 am Post Subject:
Do the carriers assume the KBB value as the ACV?
KBB definitely helps carriers determine the ACV of a car. Many carriers may completely depend on the estimates provided by KBB. But there are other sites too that help carriers determine the actual value like the nadaguides and also edmunds. KBB seems to be more popular with most carriers.
However, the insurance carriers are generally known to determine the actual value of a totaled car as something between wholesale and retail. The price for which other similar vehicles have been sold in a particular area is also used to determine the value of a car. An individual can also compare and see how much another car in a similar condition and mileage is being sold for to see how much his car can be actually worth.
Posted: Tue Apr 07, 2009 11:49 am Post Subject:
.
.
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Try these Sites:
State insurance departments --- http://www.naic.org/site_map.htm
Texas Department of Insurance --- http://www.tdi.state.tx.us/
National Association of Insurance Commissioners --- http://www.naic.org/index.htm
FK,
Posted: Thu Apr 09, 2009 01:26 pm Post Subject:
Dear Sil..do you mean that the process of determining the ACV would vary from one carrier to another?
Posted: Fri Apr 10, 2009 06:27 am Post Subject:
As different carriers refers to different data surely the ACV's will also differ but it is for very sure that the general practice followed by all the carrier follows basic steps which are common.
Procedure to prepare is same whether it is a Mc-donald or Domino's but still taste may differ!! got it!!
:wink:
Posted: Fri Apr 17, 2009 07:03 am Post Subject:
Dear Sil..do you mean that the process of determining the ACV would vary from one carrier to another?
Well anonymous00, while it is true that the process of determining the ACV of a car would vary from one insurance company to another, the difference might not be huge. The methods used by the car insurance companies vary and depend on the state they are located in and also their own company guidelines.
While some insurance companies may straightaway send you to a mechanic's garage, some may send an insurance investigator to make an estimate of the ACV.
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