How much my car value should be after Totaled

Posted: Thu Nov 18, 2010 05:43 am Post Subject:

It would have been nice to know what year vehicle you are wiring about -- pick a year between 1989 and 2010.

Posted: Thu Nov 18, 2010 07:30 am Post Subject:

I'm sure they're gonna deduct the salvage in order to let you keep your car. But FOA, you should answer Max's question.

Posted: Thu Nov 18, 2010 12:24 pm Post Subject:

In Missouri the insurer must provide the name of a buyer of the salvage and the amount that they bid for the salvage (I am told) if they present you an offer for you to retain your salvage. I recently had a customer who wished to repair his damaged vehicle or retain it if salvaged. The third party deemed it a total and the insurer sent him a power of attorney form for him to sign over his title to them and asked for any addtional keys to be placed in the special envelope they sent him. This was all before even tendering an offer for settlement. Where in this country is it legal for anyone to walk up to you and tell you what your property is worth and demand your cooperation in transferring ownership to the third party insurer or non contracted party?
After a nice letter of reply (with my assistance) to the insurer from the damaged party asking by what statutory authority they were making this demand and why were they treating him as though he was a party to a contract that he must abide by and that was a contract between the insurer and the negligent driver.
Next day he received a letter of apology for claiming his vehicle was a total when it did not meet the threshold. Many time insurers see an opportunity to recover a portion of their expenses by claiming a vehicle a total loss that they know will bring a hefty salvage price and they will not have to pay lengthy rental expenses or losses of use. It's a good strategy by the insurer but the damaged party is under no obligation to assist the negligent party's insurer in mitigating their losses or gaining from them.

There is nothing wrong in this scenario as long as the damaged party agrees that it is in their best interest to forfeit their property (no lien) and agrees with the settlement offer. Threatening arbitrary deadlines, sending non agreed settlement checks to entice a quick settlement, cutting off rental use, are all ploys some insurers use to ensure that thirdparty settlements work in their favor.