how to figure settlement with previous salvage title

Posted: Wed Mar 19, 2008 04:28 pm Post Subject:

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... Lori,

Why would the Agent or the Insurer need to ask a consumer anything about the Title??

In all my years I've never purchased insurance coverage without submitting the V.I.N's for my automobiles.

With today's automated computerized world and the high speed search engines... I would guess that with my SSI number and the VIN they can amass all the info they need to instantly calculate my premiums. Including if any of my autos have been previously totaled.

With that said... in my opinion... the total loss value of her auto and the premiums fireyone would pay are tied together, and should be used to set her premiums.

Otherwise she would be paying premiums based on the insurer potentially paying $20,000,oo on a Total loss, when they can reasonably expect to only pay $10,000.oo to $15,000.oo.

So is she really getting the settlement value the *Insurer charged her for??*

Or is this being treated like a consumer Paying that full service Gas station attendant the price of "Premium Fuel" and the attendant filling her tank with economy (cheaper) grade fuel and pocketing the over-pay??

Do you have any way of finding someone that *Knows* how your company handles Branded Titles when calculating premiums?

[I wonder if the NCOIL or the DOI's have ever thought of this little Snafu]

FK,

Posted: Wed Mar 19, 2008 10:25 pm Post Subject:

I don't think the persons getting the insurance she is paying for in this type of situation. It seems more fair to pay premiums on what the car is actually worth if totaled.

Posted: Thu Mar 20, 2008 10:43 am Post Subject:

I agree with you both in this situation it doesn't seem fair to me either....Fred, I don't know of any company that runs a VIN until their is an accident...when they write a new person they run their drivers license checking for accidents/tickets etc....but I've never heard of a VIN ran at time of inception...

Again, and another good point, I know I have handled many second time totals...but honestly do not think any insurer ''knowingly'' insures a branded title (first party)...So could very well be moot, if the insurer were told it is branded they wouldn't accept it thus no payment (under coll/comp) made, however if it 'slid' through and coverage afforded, then (if this is the case) any payment would be appreciated I'm sure...and no it wouldn't be material mis-rep unless that specific question were on the application, which explains to me why they don't refund coll/comp premiums and deny the claims...hopefully some agents will drop in on this thread and let us know ....Hey agents! IF an insured comes to you to write a policy and from the get go says, ' hey this thing has a prior/salvaged title' will you be able to get it past underwriting for collision and comp?

Posted: Thu Mar 20, 2008 12:22 pm Post Subject:

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... Lori,

I live in a small community out here in the "Pa.Wilds". (nearest town, Pop. under 1000 (but we do have "a" as in "1" traffic light whoo-hoo)) Everyone pretty much knows what everyone else is doing.

With my being in the Auto body repair business for well over 40 years,(second generation shop-owner) I've repaired a lot of Totaled vehicles for my personal use throughout those years. I've bought two Brand new autos, one in `69 and another in `82. The rest have been Rebuilt totals with "R" Title's.

I've also been with the same Agent/Broker for that same period of time. And repaired many of his and his families automobiles. My Agent knows my "R" title history and has never hesitated to write coverage for Collision & Comp.. Many years ago I ask the question about how a claim would be paid if one of my "R" cars was totaled. His response was that it would be treated as though it had a Clear Title, and be Valued accordingly, since the premiums were based on a Clear Title automobile.

I never had the opportunity [ opportunity?? :) ]to test his statement [by totaling a car], but also never had reason to doubt his word.

The above is why I *jumped* on this Thread so hard, when you as an Adjuster stated the opposite.

My mind instantly filled with questions.

Was he wrong??

Has claims handling changed that much in the past 15-20 years??

Should I be concerned??

Should I ask the question of the Pa. DOI (and cc our Attorney General's Office and district Legislator (who was Born, Raised, and lives in this community) ??

Should I just forget about it??

Or...???!!!
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About running the VIN at application time.

I don't *know* what the boys at the top instruct their employee's to do, but in this information age (to me) it would seem foolish not to *mine* All of the Joint Insurer Data-bases before accepting an Application for coverage. For many reasons, one of which would be to keep someone that belongs in the Risk-Pool from slipping under the radar and getting insurance coverage at the Normal rate. Another... simple common sense. The imagination is the only limit on what can be done with the Trillions of bits of Info out there in Cyber-Space.


FK,

Posted: Thu Mar 20, 2008 12:48 pm Post Subject:

I've repaired a lot of Totaled vehicles for my personal use throughout those years

His response was that it would be treated as though it had a Clear Title, and be Valued accordingly, since the premiums were based on a Clear Title automobile.

never had reason to doubt his word.

Was he wrong??

Has claims handling changed that much in the past 15-20 years??

Should I be concerned??

Should I just forget about it??.

Should I ask the question of the Pa. DOI (and cc our Attorney General's Office and district Legislator (who was Born, Raised, and lives in this community) ??

Posted: Thu Mar 20, 2008 02:56 pm Post Subject:

I agree with you there Lori. They should go the extra step and run VIN's and take pictures. It is a wonder this isn't already being done. I guess I already though that they ran VIN's. When you get online and look for insurance or even call an office this is one of the first things they ask for.
It sounds to me ,in your pervious post ,that people with R-titles could have a hard time getting them insured for comp/collision? Can an insurer deny a vehicle coverage if they are aware of this before hand? Around here people go to salvage yards and redo vehicles all the time. Thats how my brother got his first "newer" truck. Redid it himself years ago and its still on the road. Never had an accident so he never had to face this delima. Recently he began talkingabout redoing another...this is why the topic interests me.
Also when my hubby ran our lawn tarctor into the side of his truck recently he still got the full value to repair it. Of course it was my homeowners that paid..Should have the R-Title business came into play here?

Posted: Thu Mar 20, 2008 09:03 pm Post Subject:

It sounds to me ,in your pervious post ,that people with R-titles could have a hard time getting them insured for comp/collision?

Can an insurer deny a vehicle coverage if they are aware of this before hand?

Posted: Thu Mar 20, 2008 09:39 pm Post Subject:

Also when my hubby ran our lawn tarctor into the side of his truck recently he still got the full value to repair it. Of course it was my homeowners that paid..Should have the R-Title business came into play here?

Posted: Fri Mar 21, 2008 07:06 pm Post Subject:

I guess I already though that they ran VIN's. When you get online and look for insurance or even call an office this is one of the first things they ask for.

Posted: Fri Mar 21, 2008 08:53 pm Post Subject:

MBTexas,

Generally, the VIN is requested for rating reasons. With so many submodels of particular vehicle and so many ISO symbols between these subclasses, having a VIN is the best way to get an accurate quote.

Now when we run a CLUE report (prior claims report), claims on the vehicle itself can show up, but the checks do not show the status of the title.

Now, I can say most carriers do have vehicles with salvaged titles listed on their "ineligible vehicles list" in their guidelines. Of the companies that allow salvage titles, they generally have rules set up to not allow comprehensive or collision coverage be purchased on the vehicle. These rules and guidelines are set up to try and avoid E&O situations, but, we are not given the tools to verify the status of the title. It's kind of a tough position for the agents and adjusters having to explain it after the fact.