by saumyakothari » Sat Nov 13, 2010 02:59 pm
Car has salvage title so they reduced the price to payout hugely. Wondering how they calcuate actual cost on salvage title. Is there a fixed percent or something else. Also insurance always charged like it was non salvaged car.
This car initially had only front fender damaged which was fixed and approved by dmv.
This car initially had only front fender damaged which was fixed and approved by dmv.
Posted: Sat Nov 13, 2010 06:24 pm Post Subject:
Wondering how they calcuate actual cost on salvage title.
I don't know of any set way to determine this but most carriers will deduct 25% from the value of the vehicle for a salvage title.Also insurance always charged like it was non salvaged car.
Correct. Had they been told that it was a salvage vehicle they would have (should have) never insured it for 1st party coverage. If you don't tell them this, they cannot know. So it's not really their fault.This car initially had only front fender damaged which was fixed and approved by dmv
Did you pay top dollar for the vehicle or did you pay a reduced price because it was a salvage vehicle? If you paid top dollar then you paid too much. If you paid less, then you should understand why the insurance company is discounting the value as well.Posted: Fri Nov 19, 2010 11:29 pm Post Subject:
Wondering how they calcuate actual cost on salvage title.
It varies based on insurance company. Some use salvage title comps and others blatantly break insurance regulations and use a 50% rule, valuating at 50% of a clean title equivalent. Your best bet is to comp your own vehicle and see what the general percentage is. Then use your evidence to negotiate with the insurer.
For a Honda Civic in my market area, for instance, you'll get about a 40% deduction for a newer model, about a 25% deduction for an 8 year old vehicle, and then a negligible, if any, deduction by the time the vehicle is around 15 years old. I don't know the scale for a 4 year old Camry, but Craigslist will be your friend for this task. Salvaged Camrys are not as common as Civics and Corollas, but there are still a lot of them out there.
Also insurance always charged like it was non salvaged car.
I think that's a bit of a complicated issue, and the time to bring up the cost of the policy is when you purchase the policy, or at the very least before you use the policy.
My insurer knew my vehicle was salvaged and had no problem covering it. Next time, make sure that is known up front, and if you're not happy with the fees, then don't buy the policy.
Good luck to you. If you have any more questions, just let me know. I was able to get the insurance company's original offer of $2500 up to just over $4000, so I've had a little luck in this area! :) It does take some work, though, so if you don't have the time, then you'll just have to eat the loss.
Posted: Sat Nov 20, 2010 12:53 am Post Subject:
I think that's a bit of a complicated issue, and the time to bring up the cost of the policy is when you purchase the policy, or at the very least before you use the policy.
Quite true. This is not a place where one-size-fits-all, and there is plenty of competition for auto insurance for good drivers. You can't complain about the cost if you've never argued the point before now.
I've had a running problem with the valuation on my homeowner's policy. But I have the documentation to show that I've been complaining about it for two years now. And now I've filed a complaint about it with the CDI. I didn't just sit around silent all this time.
Add your comment