by Sabrina » Sat Mar 08, 2008 09:37 am
Hello, I'm Ark and new to the message board and have a question that maybe someone may be able to answer for me please.
I have a 1994 Ford Van in good condition that we use for everyday use to and from work, grocery shopping, heck it's our only vehicle, so it's used for everything we do.
I went get gas for my van and parked it at the gas pumps. I went into the store to pay and a car backed into my van. She had insurance and we filed the claim on the damage with her insurance company the following day and an insurance adjuster come out to our house to make an estimate on the damage.
The adjuster left and told us she would call us on the next day to give us what they estimated the damage to be.
The estimated the damage to be 1500.00 but would only pay 700.00 because of the age of the van and this insurance company says that the van is considered a total lost. Anyway, we disagree with their opinion and told the insurance company we wanted full payment for the damage so we could fix our vehicle...insurance company refuses and sent us this letter along with a check for 700.00.
Dear Mr. John Doe,
Enclosed please find a draft in the amount of $700.00, which represents the actual cash value of your vehicle, less the salvage value of $401.19.
Since you have chosen to retain salvage to your vehicle, per House Bills 2151 and 2599, Progressive Insurance Company must notify the State of Texas that you have done so.
The State of Texas will not allow transfer of title to your vehicle until a (specify either: Salvage Certificate of Title or Non repairable Certificate of Title) is issued.
If you choose to repair the vehicle and apply for a new title, you must have the vehicle inspected at the DPS inspection station and pay a $120.00 inspection fee. Once you have the document, you will be allowed to obtain a new title which will state the vehicle was previously in salvaged condition.
If you have any questions, please call me or call the Department of Transportation.
Sincerely,
XXXX XXXXXX
Claims Representative
XXXX XXXXX Insurance
My questions is:
This Insurance company can't do this can they? We have not signed any papers or the check. This is not their vehicle, nor do they own it. Any advice would be greatly appreciated.
Thank You,
Ark
I have a 1994 Ford Van in good condition that we use for everyday use to and from work, grocery shopping, heck it's our only vehicle, so it's used for everything we do.
I went get gas for my van and parked it at the gas pumps. I went into the store to pay and a car backed into my van. She had insurance and we filed the claim on the damage with her insurance company the following day and an insurance adjuster come out to our house to make an estimate on the damage.
The adjuster left and told us she would call us on the next day to give us what they estimated the damage to be.
The estimated the damage to be 1500.00 but would only pay 700.00 because of the age of the van and this insurance company says that the van is considered a total lost. Anyway, we disagree with their opinion and told the insurance company we wanted full payment for the damage so we could fix our vehicle...insurance company refuses and sent us this letter along with a check for 700.00.
Dear Mr. John Doe,
Enclosed please find a draft in the amount of $700.00, which represents the actual cash value of your vehicle, less the salvage value of $401.19.
Since you have chosen to retain salvage to your vehicle, per House Bills 2151 and 2599, Progressive Insurance Company must notify the State of Texas that you have done so.
The State of Texas will not allow transfer of title to your vehicle until a (specify either: Salvage Certificate of Title or Non repairable Certificate of Title) is issued.
If you choose to repair the vehicle and apply for a new title, you must have the vehicle inspected at the DPS inspection station and pay a $120.00 inspection fee. Once you have the document, you will be allowed to obtain a new title which will state the vehicle was previously in salvaged condition.
If you have any questions, please call me or call the Department of Transportation.
Sincerely,
XXXX XXXXXX
Claims Representative
XXXX XXXXX Insurance
My questions is:
This Insurance company can't do this can they? We have not signed any papers or the check. This is not their vehicle, nor do they own it. Any advice would be greatly appreciated.
Thank You,
Ark
Posted: Mon Mar 10, 2008 11:31 pm Post Subject:
You can sell it with a salvage title, it just tends to be worth less.
Posted: Tue Mar 11, 2008 12:40 am Post Subject:
You can sell it with a salvage title, it just tends to be worth less.
tcope this would've been my initial response as well, until i saw both of these....Texas has strict guidelines about what constitutes a salvage vehicle, how to go about getting a salvage title issued, who may buy or sell a salvage vehicle
The State of Texas will not allow transfer of title to your vehicle until a (specify either: Salvage Certificate of Title or Non repairable Certificate of Title) is issued.
Do you know this to be true in Texas? I mean that she can sell the vehicle once it has been reported as having a salvaged title without doing ''something'' with it first? (I realllllllllllllly don't want to read that 171 page doc)....Posted: Tue Mar 11, 2008 01:09 am Post Subject:
I don't know if this will help but in PA you can get a salvaged vehicle repaired but you have to send to the state proof that the vehicle was reconditioned to safe standards. Plus you have the cost of a state inspection. After that they release you what I always called an R-Title cause thats what a garage calls it. It does depreciate the value quite a bit. So here you really are hust better to let the vechicle go. My brother went through this after his wife rolled their SUV on bad roads. It got his temperature up quite a bit but n othing he could do about it.
Posted: Tue Mar 11, 2008 01:14 am Post Subject:
Well crap, I couldn't stand it, I was worried we might not be giving the OP the correct information... :cry: and certainly didn't want her to get into any trouble.....I read the darn 171 page thing, (well not all) anyway as I understand it she may NOT sell it...in the 'state' the title is now in...here is the information I found as it relates to owner retained, insurance claim totaled vehicles:
OWNER RETAINED VEHICLES• When an insurance company pays a claim on a salvage or nonrepairable motor vehicle and does not acquire ownership of that vehicle, the insurance company is required to submit an Owner Retained Report (Form VTR-436) with a revision date of 9/2003 or later to the department, before the 31st day after the date of the payment of claim.
Note: If the date of claim payment is prior to September 1, 2003, a
Form VTR-436 with a revision date prior to 9/2003 shall be submitted.
• Owner retained provisions apply only to motor vehicles that meet the definition of salvage or nonrepairable (i.e., damage exceeds 100% of pre-damaged value or the only residual value is scrap metal or used parts).
• Insurance companies may not submit an Owner Retained Report
(Form VTR-436) for motor vehicles with a lesser amount of damage.
• The insurance companies shall complete the Form VTR-436 to report that the insurance company:
(1) has paid a claim on the salvage or nonrepairable motor vehicle; and
(2) has not acquired ownership of the salvage or nonrepairable motor
vehicle.
• Upon receipt of a properly executed Form VTR-436, the department will:
(1) place a “LEGAL RESTRAINT-CONTACT TXDOT (#OR)” remark on
the motor vehicle record and will invalidate any current registration to
prevent transfer of ownership and issuance of registration prior to the
issuance of a Salvage or Nonrepairable Vehicle Title;(2) notify the recorded owner of the retained motor vehicle and lienholder
(if applicable) of receipt of the report, advise the owner to obtain the
appropriate salvage-type document and of the restrictions on transfer
and operation of the vehicle. 3 - 5 12/2006
Section 3 Insurance Companies
• Until a Salvage or Nonrepairable Vehicle Title, or a comparable out-of-state ownership document has been issued for an owner retained vehicle, the owner of the motor vehicle may not:
(1) sell or otherwise transfer ownership of the vehicle; or
(2) operate or permit operation of the motor vehicle on a public highway:
(a) until the motor vehicle is rebuilt;
(b) titled as a rebuilt salvage motor vehicle or rebuilt
nonrepairable motor vehicle, if applicable; and
(c) is registered.
• A Form VTR-436-E, Owner Retained Report Correction Request, may be
submitted by an insurance company when one of the following errors was
made on a Form VTR-436, Owner Retained Report:
(1) the cost to repair the damage to the vehicle was not sufficient to
classify the vehicle as a salvage motor vehicle (i.e., the estimated cost
of repairs did not exceed the pre-damaged actual cash value of the
vehicle) or
(2) the original VTR-436 filed by an insurance company incorrectly
indicated the vehicle was a salvage motor vehicle, but it is in fact a
nonrepairable motor vehicle, or vice versa.
OWNER RETAINED REPORT (FORM VTR-436)
• The insurance company shall submit an Owner Retained Report
(Form VTR-436) with a revision date of 9/2003 or later, if the date of claim
payment was on or after September 1, 2003.
• An Owner Retained Report will be rejected if the date of claim is on or after September 1, 2003, but a Form VTR-436 with a revision date prior to 9/2003 is submitted.
• The Owner Retained Report (Form VTR-436) must be mailed to the:
Vehicle Titles and Registration Division
Texas Department of Transportation
Attn: Title Control Systems Branch
Austin, Texas 78779-0001
Note: Insurance companies using a contracted business to complete the
Form VTR-436 on owner retained vehicles should also include the address of the contracted business in the event the Form VTR-436 must be rejected. With this address, the department will be able to send the rejected forms directly to the contracted business for correction. This address can be submitted on a Section 3 Insurance Companies
separate page with a note to the department authorizing the contracted
business to handle the insurance company's owner retained notifications.
• If the date of claim payment was prior to September 1, 2003, an insurance company is required to use a Form VTR-436 with a revision date prior to 9/2003.
Note: A Salvage Vehicle Title will be issued in lieu of a Nonrepairable Vehicle Title if an insurance company paid a claim on a nonrepairable motor vehicle prior to September 1, 2003 and the owner retained the vehicle. This allows the owner to rebuild and retitle the motor vehicle, since it was determined to be nonrepairable prior to the change in law that prohibits rebuilding of a nonrepairable motor vehicle.
If I'm understanding this, you can sell it, LATER....after you have jumped thru the hoops set out here.....(geeeeeeeeeze, I'm tired now....night all)
Posted: Tue Mar 11, 2008 01:55 am Post Subject:
Wow Lori that was really cool of you to sit and read all that for the OP. Good night.
Posted: Tue Mar 11, 2008 03:58 am Post Subject:
Lori,
Thank you so much for going out of your way to post this information for me.
I'm so upset about all this. I just got my van inspected with all new stickers and now none of them are any good because of this wreak :(
I can't thank you enough Lori, thanks you thank you.
Sabrina
Posted: Tue Mar 11, 2008 10:53 am Post Subject:
I'm so upset about all this. I just got my van inspected with all new stickers and now none of them are any good because of this wreak
I know you are Sabrina and don't blame you, it really a bad situation (always is) when an older yet driveable vehicle is damaged, then totals...Please call the phone number and talk with them...if I'm understanding (this very complex information) you will be able to sell it once you get this...(b) titled as a rebuilt salvage motor vehicle or rebuilt nonrepairable motor vehicle, if applicable; and (c) is registered.
Now it could be in your case that you can get this without near the trouble we think it will be....(i sure hope so)...are your doors operable? Do you know anyone in your area that can do body work at a 'very' reasonable rate? If it just needs doors, if you don't know any, let me know and I'll try and find you a few salvage yards, that you can purchase doors from, (if they need replaced)...Or go on line and look for them...most salvage yards now have sites....I'm so very sorry, and hope that you just call them and they say, ''come on in let us look at the van, and then reissue the title for you'' I really hope that happens...please let us know, and of course if we can be of any further assistance....I can't thank you enough Lori, thanks you thank you.
It my (all of our) pleasure, I wish the news/information I found had been better for you though :cry:Posted: Tue Mar 11, 2008 05:44 pm Post Subject:
A vehicle can be sold with a salvage title. The salvage title just informs the buyer that it has been totalled or salvaged. These titles are to help protect buyers from sellers not disclosing this information.
Now with a salvage title, most insurance companies will not let you carry physical damage coverage on the vehicle, just liability, uninsured/underinsured motorist coverage and PIP.
Posted: Wed Mar 12, 2008 12:53 am Post Subject:
I never knew that part about the coverage. That stinks for the person who put alot of money into repairing a vechicle. So even if the vehicle still had a pretty high resale value, say in the thousands, you couldn't insure it for more than liability. It is almost worth just letting the vehicle go.
Posted: Wed Mar 12, 2008 11:26 am Post Subject:
you couldn't insure it for more than liability. It is almost worth just letting the vehicle go.
No fireyone, this is company specific, believe me...i handle a lot of physical damage claims on salvage titled vehicles...(as she grooooannnnnnnnsssssss loudly)..........A vehicle can be sold with a salvage title.
Apparently not MB in your state of TX, UNTIL she completes all the steps secures a Salvage or Nonrepairable Vehicle Title-- in fact is says, the department will:(1) place a “LEGAL RESTRAINT-CONTACT TXDOT (#OR)” remark on the motor vehicle record and will invalidate any current registration to prevent transfer of ownership and issuance of registration prior to the issuance of a Salvage or Nonrepairable Vehicle Title;
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