Tow company bought totaled car-didn't change title

Posted: Sun Oct 11, 2009 06:23 pm Post Subject:

If you released the title to the insurance company after the settlement of the vehicle, you no longer own that vehicle. The at-fault party's carrier sold the vehicle to a salvage yard including all fees. The person who purchased that vehicle doesn't have to "junk" it. In some states, the DMV will reimburse you for the tags if you can show proof of purchase 30 days from the date of loss. Whoever has your title should also have the car. I am confused as to why someone would have your title and no car, that makes no sense. The DMV is not informed if someone destroys the car, unless that someone is trying to retitle it. In that case, the title would be branded as a salvage title. Hopefully you still have the carrier's letter of the amount offered for the vehicle and a copy of the check, that you can release to the DMV. If the DMV already has a copy of the change of liability, I don't know what the hold up is.

Posted: Sun Oct 11, 2009 07:11 pm Post Subject:

I did not release title to the insurance co. As my post says, the adv. ins (who I settled prop dmg claim with) told me I still owned the car. They did not take title. Tow company said they would take it off my hands, after claiming it had no salvage worth. I signed title over to them and the guy said he would fill it in and process it. Clearly, he did not but sold the damaged vehicle to a 3rd party. How can he sell a car he never took title to, he just passed it through as if I sold it to the third party. Third party has not registered the vehicle or claimed a salvage title (it's been 3 months now) and because of this, DMV will not refund my fees. I think I was defrauded.

Posted: Sun Oct 11, 2009 07:28 pm Post Subject:

You are saying that an insurance company offered to buy your car, paid you and told you that you still own it? Tow companies DO NOT total cars, nor do they put values on cars. Are you sure that you did not retain the salvage? Meaning the carrier settled on amount partial of the damage amount and let you keep the car? So then, you gave the car to the tow company for free? Your story makes no sense.

Posted: Sun Oct 11, 2009 07:56 pm Post Subject:

Thanks for your input and sorry if I'm not articulating my situation cleary. The adverse insurance company never offered to buy the car. I settled property damage for the value, but the car always remained mine and my responsibility to dispose of it. The adv insurance company does not have to buy the car, only to compensate me for the damage caused by their insured. Their adjuster deemed it a total loss and we settled. However, the car sitting in the tow company's lot was still racking up daily storage fees and it was up to me to try to sell it for salvage or whatever. This was the first time that's ever happened where I was left to figure out how to dispose of a totaled vehicle. I did not retain salvage. I sold the car to the tow company and signed over title to them. I was a dope for not filling in their name on the title, but trusted the guy to do it when he said he would "process" it. Thanks again for your time.

Posted: Sun Oct 11, 2009 08:06 pm Post Subject:

I am still confused as to how you still own the vehicle after it was deemed a total loss and the carrier paid you. If they deemed it a total loss and you didn't retain salvage, they paid you for the market value of your vehicle minus deductions, not the amount of the damage. They then would own the vehicle. They have nothing to gain by allowing you to keep the vehicle, thats a win win on your part. Who is the insurance company? So you then gave up your vehicle to the tow company if you paid the fees? What is the ACV of (actual cash value) your car? This is seperate from the salvage value.

Posted: Sun Oct 11, 2009 08:44 pm Post Subject:

The insurance company of the adverse driver is AAA and this is in Orange County, California. The AAA claims rep told me on the first call that I am owner of the vehicle and I am responsible for dealing with the storage of it (they would pay so many days of storage after they made an offer to settle.) This was a 2002 PT Cruiser and after calculating recent work we had done on it, it had a value of about $6500. Then they subtracted "salvage value" they calculated at $785. I negotiated down this salvage value since they just come up with the amount thru their computer system and the fact that no one would buy it for salvage. AAA compensated me for my property damage which equaled the market value of the car. I know of no law that requires them to take title of the car. It's compensation, not a sale. Just because they paid me doesn't mean they have to take title of the car if they don't want to. We negotiated the salvage value too and I got AAA to knock the $785 salvage value deduction down to the $300 value I got by giving title to the tow company. AAA was very fair, except for leaving me with having to get rid of a totaled vehicle.

But my question is did the tow company illegal sell my PT to a third party. I thought I sold the PT to the tow company to either junk, or even sell for salvage, but in either event, they were not suppose to leave me floating as registered owner of a vehicle sold to an unknown third party. And I don't see how they can sell my car to a third party for salvage if the tow company never took title and told me no one would buy it for salvage.

See, the accident was in late July of 2009. The tags didn't expire until late August but I had already paid the tags for the next year. I sent in a form to the DMV to get that $114 back, but they said no salvage title had been filed. So whoever has the PT is using my tags and if the car gets on the road again, I'm tied up as registered owner. Even tho not legally liable, it can cost a bunch to appear and proof that up in any lawsuit should the PT get in an accident. I just want my $114 tag fee and to be off the title and am not sure how to discuss this with the tow company, or just go to small claims court?

Thanks again for trying to understand my situation and help.

Posted: Mon Oct 12, 2009 11:08 am Post Subject:

pamdaly, I get what you're saying, and have seen it a ton of times..In essense you owner retained, (since they didn't take the car, and you had to dispose of the salvage). You signed over the title for the tow and storage charges, and this peach of a tow lot guy further talked you into kicking in another 200 bucks to boot. He/She then sold it to the guy that knocked on your door.

Did he illegally sell your car? Nope, I don't think so., well maybe...did you illegally sell your car? Yep, kind of. You should've signed over the title TO the yard, thus transferring ownership to them (I personally would still do this). They then would've had to get the title in their names, and sell it to the guy on your porch. Further more, you NEVER leave plates on ANY car. This swell lot owner should've insisted you take them or distroy them.

Where does it stand now? Did you do anything with the guy on the porch? Did you sign the title over to him? (hope not). Did you happen to ask him what he paid for the car?


Let us know, and we'll see what we can find out. From what I see so far, I'd be reporting this guy...

Posted: Mon Oct 12, 2009 11:46 am Post Subject:

I'm still confused. I have never settled with someone and let keep them car unless they retained. There is a big difference between no salvage value (which is rare) and no takers. I have to agree that he illegally sold the car. But thats what I don't get. Whats in it for the carrier if they pay and you keep the car, that doesn't makes sense. AAA is one of my biggest clients, is this something in the state of CA or a carrier policy?

Posted: Mon Oct 12, 2009 01:02 pm Post Subject:

I'm still confused. I have never settled with someone and let keep them car unless they retained

I got AAA to knock the $785 salvage value deduction down to the $300 value I got by giving title to the tow company

Then they subtracted "salvage value" they calculated at $785. I negotiated down this salvage value since they just come up with the amount thru their computer system and the fact that no one would buy it for salvage.

Whats in it for the carrier if they pay and you keep the car, that doesn't makes sense.

Posted: Mon Oct 12, 2009 01:30 pm Post Subject:

I did not retain salvage