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: Sat Apr 23, 2011 01:07 pm Post Subject:
While unfortunate, your situation is not unique. The adjusters on the forum will probably add comments based on their personal experiences.
Hidden damage can lead to a reconsideration of the claim. The general rule of law is that if the cost to repair exceeds about 75% of the precollision value of the vehicle (you don't state the year, make, or model), the damages will be considered a TOTAL loss. Your contract, unless specially written at a "stated value", provides for "actual cash value" (ACV), which is the replacement cost MINUS depreciation prior to the collision.
"Missing the estimate by 50%" on the basis of hidden damage is not the fault of the original adjuster's estimate to repair. If your repair shop has been in business for more than a few months, they are well aware of the need to inform both YOU and the INSURER of any additional damage that needs to be repaired. This is a failure on their part, as you have indicated, and the insurance company is responding in the only manner they can. You cannot fault the insurance company in this case. They have done nothing wrong, other than, perhaps, undervaluing your vehicle. Again, we have no idea what kind of vehicle is involved or its age.
A vehicle that has been in a repair shop for THREE MONTHS obviously had extensive damage (or was a new model and repair parts are hard to get). The likelihood of finding hidden damage was great, and everyone should have been aware of the potential.
If you want to get mad at anyone, get mad at the owner of the repair facility. This event is far from "being raped." It is an example of not knowing what your insurance contract does and does not provide. You were provided with a copy and were expected to read and understand it. Did you?
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