My car has been totaled and I want to buy it back but my insurance company says no. Do I have any rights they said it is going to auction?
Total Comments: 7
Posted: Tue Jul 16, 2013 11:49 pm Post Subject:
They have no right to take your personal property. They can deduct it's salvage value if they want. They may also require that they send the title to the state to have it changed to a salvage title.
Posted: Wed Jul 17, 2013 09:35 am Post Subject:
They have no right to take your personal property.
Not without compensation. If the insurance company has paid the OP for her total loss, then they have effectively purchased the vehicle from her and as the new owner may do with it as they please. They do not have to negotiate a salvage price with their insured.
Posted: Wed Jul 17, 2013 01:27 pm Post Subject:
then they have effectively purchased the vehicle from her and as the new owner may do with it as they please.
The insurance company has a contractual obligation to pay the insured for the insured's loss. No where in the policy does it state that the insured is required to give up the property. As such, the insurance company would not have a valid argument that they were not required to do as they agreed in the contract. As I mentioned, the insured's argument is that the insurance company need only deduct the salvage value from their offer in order to adhere to the contract.
Most likely the issue here is that the adjuster does not know any better. They were told to do it one way so they think it's required.
Posted: Thu Jul 18, 2013 06:10 am Post Subject:
In P&C insurance claims, payment for a total loss effectively conveys title to the property to the insurance company. To both keep the property and collect on a claim, without a deduction for the salvage value creates a profit for the insured, violating a fundamental premise that insurance is not intended to provide a profit.
As in the case of stolen property that is recovered after a loss has been paid, if the insured wants the property returned to them, they have to reconvey the value to the insurer. Auto claims for total losses are no different.
Posted: Thu Jul 18, 2013 12:36 pm Post Subject:
In P&C insurance claims, payment for a total loss effectively conveys title to the property to the insurance company.
Where in the policy does it state that the insured must forfeit the property in the case of a total loss?
To both keep the property and collect on a claim, without a deduction for the salvage value creates a profit for the insured, violating a fundamental premise that insurance is not intended to provide a profit.
Which is why the insurance company could simply settle the claim, as the policy requires, by deducting the salvage value.
Posted: Thu Jul 18, 2013 01:01 pm Post Subject:
Which is why the insurance company could simply settle the claim, as the policy requires, by deducting the salvage value.
But they are not required to do this. It's their call.
Posted: Thu Jul 18, 2013 01:16 pm Post Subject:
They would be required. The insurance would not pay if they did not get the vehicle. The insured would filed suit. The insured's argument is 1) that the policy does not require the property to be given up and 2) that the claim _can_ be settled, according to the terms of the policy, if salvage value is simply deducted from the claim. The insurance company is left in the _exact_ same position as it would be had it not taken the vehicle (fact). Bath faith claim won and the insured walks away with extra money in their pockets in punitive damages.
Posted: Tue Jul 16, 2013 11:49 pm Post Subject:
They have no right to take your personal property. They can deduct it's salvage value if they want. They may also require that they send the title to the state to have it changed to a salvage title.
Posted: Wed Jul 17, 2013 09:35 am Post Subject:
They have no right to take your personal property.
Not without compensation. If the insurance company has paid the OP for her total loss, then they have effectively purchased the vehicle from her and as the new owner may do with it as they please. They do not have to negotiate a salvage price with their insured.Posted: Wed Jul 17, 2013 01:27 pm Post Subject:
then they have effectively purchased the vehicle from her and as the new owner may do with it as they please.
The insurance company has a contractual obligation to pay the insured for the insured's loss. No where in the policy does it state that the insured is required to give up the property. As such, the insurance company would not have a valid argument that they were not required to do as they agreed in the contract. As I mentioned, the insured's argument is that the insurance company need only deduct the salvage value from their offer in order to adhere to the contract.
Most likely the issue here is that the adjuster does not know any better. They were told to do it one way so they think it's required.
Posted: Thu Jul 18, 2013 06:10 am Post Subject:
In P&C insurance claims, payment for a total loss effectively conveys title to the property to the insurance company. To both keep the property and collect on a claim, without a deduction for the salvage value creates a profit for the insured, violating a fundamental premise that insurance is not intended to provide a profit.
As in the case of stolen property that is recovered after a loss has been paid, if the insured wants the property returned to them, they have to reconvey the value to the insurer. Auto claims for total losses are no different.
Posted: Thu Jul 18, 2013 12:36 pm Post Subject:
In P&C insurance claims, payment for a total loss effectively conveys title to the property to the insurance company.
Where in the policy does it state that the insured must forfeit the property in the case of a total loss?To both keep the property and collect on a claim, without a deduction for the salvage value creates a profit for the insured, violating a fundamental premise that insurance is not intended to provide a profit.
Which is why the insurance company could simply settle the claim, as the policy requires, by deducting the salvage value.Posted: Thu Jul 18, 2013 01:01 pm Post Subject:
Which is why the insurance company could simply settle the claim, as the policy requires, by deducting the salvage value.
But they are not required to do this. It's their call.Posted: Thu Jul 18, 2013 01:16 pm Post Subject:
They would be required. The insurance would not pay if they did not get the vehicle. The insured would filed suit. The insured's argument is 1) that the policy does not require the property to be given up and 2) that the claim _can_ be settled, according to the terms of the policy, if salvage value is simply deducted from the claim. The insurance company is left in the _exact_ same position as it would be had it not taken the vehicle (fact). Bath faith claim won and the insured walks away with extra money in their pockets in punitive damages.
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