by Guest » Tue Mar 18, 2008 05:32 am
I have friend who bought car with salvage title, not knowing much about that type of thing, other than thinking they got a great deal on the buy. She was in a small accident recently and it might turn out to be a total loss (at least one air bag blew, plus dented fender, etc.)
How will having a previous salvage title impact the settlement (and they think they want to keep the car) ? What should they be asking the insurance company ?
How will having a previous salvage title impact the settlement (and they think they want to keep the car) ? What should they be asking the insurance company ?
Posted: Tue Mar 18, 2008 10:07 am Post Subject:
Thats a new one I haven't seen asked here so I joined. Someone should answer you pretty shortly so keep checking...good luck.
Posted: Tue Mar 18, 2008 10:30 am Post Subject:
Well I'm sure she did get a good deal....typcially 'salvage or prior salvage' titled vehicles are worth anywhere from 25-50% less, (than retail) older vehicles aren't hit quite as badly as newer ones......assuming the insurance carrier will run a title search they will surely find this out (probably already have)....she can still keep the vehicle, may have a hoop or two to jump thru to return it to 'prior' salvage.. If your friend wants to double check on the value, and what a salvaged title can do have her call a couple of good used lots tell them what she has ask ''what would you sell this vehicle for without and 'with' a salvaged titled.. unfortunately she may be shocked...if you'd like provide all the vehicle information (make, model, year, mileage and all options) I'd be happy to run a value, and tell you what we think (percent wise)...re: the branded title....
Posted: Tue Mar 18, 2008 09:52 pm Post Subject:
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... Blackbelt4
You might also want to contact your Agent and inquire about the Lower cost of insurance for this auto do to it having a Salvage Title. Compared to this same auto if it had a Clear Title. I've never heard of a "Salvage Title Discount."
My thinking is... if your paying the same either way, then you've been paying based on a clear Titled auto. In which case one should think your settlement would be based on the value of a Clear Titled Auto.
FK,
Posted: Tue Mar 18, 2008 11:50 pm Post Subject:
Do they even give discounts on insurance for salvage vechicles? I have never had a salvage vehicle but one never knows when this will apply later in life and the info could come in handy. Lori, it does sound right about a salvage vehicles value being less. I mean I wouldn't buy a vehicle off a lot for full value had I been aware it was salvaged. Now I'm not saying I wouldn't buy one. I'm just saying I wouldn't pay full price being that it was salvaged.
Posted: Tue Mar 18, 2008 11:56 pm Post Subject: Wait a minute!
Well I'm sure she did get a good deal....typcially 'salvage or prior salvage' titled vehicles are worth anywhere from 25-50% less, (than retail) older vehicles aren't hit quite as badly as newer ones......
You mean even if these cars were fixed with oem parts and restored to pre-accident condition, they would still be worth 25 to 50 percent less?
So you are saying that if a vehicle has 75 percent damage of market value; the total loss threshold of 80 percent isn't reached; it is not totaled and is restored with oem parts it suffers no loss in value?
But, If the same vehicle has 75 percent damage of market value and is totaled by the insurer because they feared hidden damage; it is later bought, rebuilt/restored with oem parts and now has a salvage title, it could be worth 50% less?
This sounds a lot like this car lost value because of the accident history. :wink:
Posted: Wed Mar 19, 2008 02:31 am Post Subject: Rebuilt Total
One of the guys that I work with rebuilt a vehicle, oem parts, did a beautiful job as always. It got totaled again and his carrier told him its value was 20-25% less. His agent hooked him up with an appraiser, they invoked the appraisal clause and got him full retail.
Posted: Wed Mar 19, 2008 09:32 am Post Subject:
Do they even give discounts on insurance for salvage vechicles?
I've never heard of it either and doubt it's exsistance, in fact many carriers will not write collision/comprehensive coverage on a vehicle with a salvaged title...You mean even if these cars were fixed with oem parts and restored to pre-accident condition, they would still be worth 25 to 50 percent less
Mike you're so funny...yep even if....because that vehicle was (according to state guidelines) damaged beyond repair....So you are saying that if a vehicle has 75 percent damage of market value; the total loss threshold of 80 percent isn't reached; it is not totaled and is restored with oem parts it suffers no loss in value?
Yes, except, number one I'm not saying it, and number two I said between 25-50%...But, If the same vehicle has 75 percent damage of market value and is totaled by the insurer because they feared hidden damage; it is later bought, rebuilt/restored with oem parts and now has a salvage title, it could be worth 50% less?
This sounds a lot like this car lost value because of the accident history.
You are just so darn cute! :wink: Our state is the one that says these vehicles will total at a certain percentage, and will maintain a salvaged title mike..however they can be changed to ''prior''...didn't say I agreed with it...just that's the way it is.... :roll: Why did the OP get such a good deal? Cause it was a salvage title! Therefore when it totals and the deduction for a salvaged title is taken then they are still getting what they lost....the ACV of a salvaged vehicle....His agent hooked him up with an appraiser, they invoked the appraisal clause and got him full retail.
See there always have that clause to fall back on, however I'd have loved to seen that data...I agree all salvaged vehicles that have been repaire should have a way of cleaning the title up (returning it to a clean title) but this would require such in depth inspections and clearly must be a case by case situation that it will never happen...I've looked at repaired salvage vehicles that have the air bags duct taped shut for pete's sake!_________________
Posted: Wed Mar 19, 2008 11:46 am Post Subject:
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... Lori,
Part of your response:
Why did the OP get such a good deal? Cause it was a salvage title! Therefore when it totals and the deduction for a salvaged title is taken then they are still getting what they lost....the ACV of a salvaged vehicle....
Hmmmmmm
So, if fireyone had two identical cars (year, make, model, color, all options, and mileage, etc.) and even though one has a Salvage Title, one would be hard-pressed to tell them apart. The Clear title one Book's for $20,000.oo
She has full coverage on both ( liability, coll. comp. etc.) And since insurer's don't offer a "Salvage" discount, she is also paying identical premiums of $1,000.oo each.
For the *Same* premium dollars... if she totals one she is paid $20,000.oo. And if she totals the other she is paid between $10,000.oo and $15,000.oo.
Even though as you say "the deduction for a salvaged title is taken then they are still getting what they lost...."
But is she getting what she *PAID* for??
That's a little like Paying a full service Gas station attendant for "Premium Fuel" and he/she fills your tank with "economy" grade fuel.
To me that does not sound reasonable..!
FK,
Posted: Wed Mar 19, 2008 12:08 pm Post Subject:
For the *Same* premium dollars... if she totals one she is paid $20,000.oo. And if she totals the other she is paid between $10,000.oo and $15,000.oo.
yep, pretty much....Even though as you say "the deduction for a salvaged title is taken then they are still getting what they lost...."
These are two different topics, one is that she is getting the ACV for the salvaged vehicle, (assuming it totaled AGAIN), and when it is settled getting what her loss was (the value of a salvage titled vehicle which is what she paid for as well...remember she got 'a great deal on the buy')...But is she getting what she *PAID* for??
Maybe not in terms of premium payment (which is the second/different topic)....she is paying to insure the vehicle for it's ACV, (which in this case is less than her other car) most (if not all) agents don't ask does that car have a salvaged title? They should because most/many carriers will not (as I mentioned) KNOWINLY write collision/comp...I see your point and agree.....I'm not certain exactly how much of the premium is based on the vehicle.. I know alot of it is based on the driver, (age, sex, marital status, location, driving record etc)...There is no question the vehicle comes into play an 88 nissian premium will be substantially less than an 08 nissian for sure! I'd have to agree with you theory....But the fact is a prior salvaged car is worth less than a clean titled car...As far as the claims settlement I see no problem...however (again) I agree with you re: the premium difference...
To me that does not sound reasonable..!
yep, doesn't to me either.Posted: Wed Mar 19, 2008 02:50 pm Post Subject:
Wow whenit comes to the insurance premiums that doesn't sound fair. I do get it about the salvage title vs clean title issue. The insurance world sure is a confusing place.
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