by jenjune » Fri Apr 27, 2012 11:07 pm
my car was damaged in hail storm 1 yr ago and it has taken 1 yr for repairs bcause of volume of cars damaged in area.the insurer now says they want to total my car.my car is an 08 honda civic with insurance estimated damage of 6000 and shop estimate of 9000.should i expect last years value of the car? i have paid 3400 on the car in the last year and the value of the car has only decreased about 2000.should i get legal advice?
Posted: Sat Apr 28, 2012 04:29 am Post Subject:
Legal advice is not necessary. Your vehicle has to be valued at the time of the loss, not today's value. That it has taken an entire year to get into the repair shop is an issue for your insurance company to deal with, not you. What you paid your lender on your existing auto loan is immaterial -- it has absolutely nothing to do with the value of your vehicle.
But, based on last year's value, if the cost to repair is in excess of 75%-80% of Actual Cash Value (replacement cost minus depreciation), then your insurance company is within its right to declare the vehicle a total loss.
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