Car wreck - declared loss. What if I don't want to surrender vehicle?

[DannyR]

We were in a minor fender bender last week, resulting in the trunk and rear tail lights being broken. The car is perfectly drivable. A new tail light would make it 100% street legal again.

However to completely replair the damage, the two quotes I've gotten both are coming up as more than the current market value of the car. Everyone I've heard from thus far says the insurance company will thus likely want to declare it a total and pay the market value. However they would want to claim the car if they do that.

This is something I certainly don't want to do, as its my only vehicle and I don't want to go into debt buying a new one at this time. So has anyone else here had a similar circumstance? What options would I have allowing me to keep the car, but at least get some payment so I can make at least some partial repairs toward the vehicle?

Obviously I know the old adage about free advice being what its worth. But as we're still in the preliminary stages I just wanted to know what to expect and what options I might be able to seek.

 

[navychop]

Ins company will likely be willing to dicker.

 

[Claude Greiner]

I know my dad was able to do something simmilar several years ago when my mom got into an accident with his car.

It was a 1979 Chevrolet Caprice, and he had it all perfectly restored with a fresh paint Job, like new interior and a new engine.

The guy T Boned the car, and I remember they totaled out the car and he some how got it back from the insurance company since he had several other caprices so he kept it for parts

 

[bhelms]

If you were struck in the rear, isn't the other driver's responsible? Regardless, if you are at least 50% "at fault" for the damages to your vehicle then you or your insurance co. would have to pay for your repairs. When that happens you run the risk of higher rates or even being dropped altogether. Is that worth the seemingly small amount they are willing to pay you? (I'm guessing it's maybe $1,000 max.??) You might just be better off making it legal then eventually trading it on something better. If you agree to a lesser payout, maybe for just the basic repairs then the ins. co. might indeed negotiate, but you're still risking a rate increase and I would avoid that at all cost. Don't forget you probably have some deductible. How does that factor in...?

 

[kenny911]

What is the make/model of your car?

 

[navychop]

bhelms: Good points.

 

[Hall]

Were you hurt (at all) in the accident ??

You always have the option of "buying" the vehicle back from the insurance company. They offered us our van in case we wanted to repair it ourselves or use it for parts, etc, etc. We would pay for it with the money they gave us for the damages.

You also have the option of doing nothing regarding the body repair.

CALL the claims adjuster and explain your ideas and/or thoughts.

 

[DannyR]

Its a 1990 Mazda Miata.

Yes, the other driver is 100% at fault, so my insurance won't increase nor will I get hit by higher costs. The problem is that no insurance company will fix a car if doing so is worth more than the value of the car itself. Their solution is to basically "buy" the car from you and declare it totalled. This is what is unacceptable to me.

 

[Hall]

This is what is unacceptable to me.

If I had a store with an item whose price tag read $19.99 and you wanted, but I told you it cost you $49.99, what would you say ??

(can't believe I'm saying this) Don't blame the insurance companies for what other people or groups say your car is worth as well as what others say the parts (and labor) cost.

 

[TheForce]

You should try to negotiate. Never forget the rule in life- everything is negotiable. If they total it the other guy's insurance owns the vehicle and pays you what it's worth. Then you may offer them $$ to buy it back. When my daughter totaled her Saturn, the insurance company had a written offer to sell it back (Allstate) They had some sort of formula but I didn't look at it closely. The other alternative is you have a right to refuse payment of damages on the car and just fix it up yourself. Nobody says you have to sell your damaged car to the other guy's insurance company. They just have to offer you what its value is on the market before damage. You may even accept a % of the value. The name of the game is negotiate. Their game is to get a quick signoff on settlement, You should stall for a better deal. People generally don't do this because they need the car or replacement fast.

 

[Bob Haller]

you should be able to keep the car for whatever $ the scrap vehicle is worth. you will likely get a new title, showing it had been totaled.


thats a resale value issue but with a 90 no big deal

time for tough negoiation, taking our time is a good thing.

i had a old van ttaled my wife came to pick me up, insurance company paid her days pay as part of settlement, since she missed wok

 

[Bogy]

I have "bought back" totaled cars twice. The first time was a '68 Cougar, in 1980, after my wife hit some black ice and rolled it. The engine and tranny had been rebuilt by my father-in-law just a few thousand miles before. I swapped the drivetrain into a '68 Mustang Fastback, and sold at a very good price some other parts that a buddy who built hot rods could use. The sequential tail lights went on a '72 Pinto, which was the second car I bought back, after a deer attempted suicide. I was able to straighten the fenders, and picked up a hood, bumper, and radiator at a wrecking yard. Never replaced the grill, just added some driving lights, that pretty well filled in the open space.

The insurance company just deducted an amount for the salvage value of the car from their payout.

Did you go to the hospital or otherwise get yourselves checked out medically? Depending on you state's laws, you very likely could get a check for "pain and suffering" over and above any medical expenses. A few years back my daughters were rearended waiting to turn into our drive. A full size van hit them, must have been doing close to 50. The care was totaled, it did what it was supposed to, and absorbed a lot of the energy. They were just a little sore, and I think we got about a grand for their P&S. My son was hit a few months ago, with two friends in the car. He just had some bumps and bruises, and got $250, his girlfriend was banged up a little worse, but nothing serious, she got more. A friend in the back seat was fine, but also got a check, I don't know for how much. This can also help you put your car back together.

 

[DannyR]

Don't blame the insurance companies for what other people or groups say your car is worth as well as what others say the parts (and labor) cost.

Who is blaming anyone? I just stated reality and wondered what my options were. I don't want to surrender the car, but I do think the car is quite reparable by myself for far less than what the estimates show. I'm still driving it for goodness sake.

The other alternative is you have a right to refuse payment of damages on the car and just fix it up yourself. Nobody says you have to sell your damaged car to the other guy's insurance company.

This is what I'm leaning toward right now. But then I get stuck being hit with no compensation. What I'm hoping is that the insurance will cover the parts, and look at the estimate quote based on just that, as labor is really what pushed it up over the edge and into the "too expensive to fix" column.

 

[Bob Haller]

whats their offer for totaling?

whats the salvage value? probably a couple hundred bucks...

whats the cost of parts?

call your agent, your insurance company shhould have a salvage value number

 

[sfollenius]

I would ask to retain salvage. They will charge what they would get from a salvage yard. You can make the repairs but keep in mind that you will only be able to carry liability on the vehicle with a salvage title.

 

[tnale]

If you buy this vehicle from the insurance company, it will have a salvage title. This will notify anyone that wants to buy it from you in the future that the car was totaled in an accident. This then means that you or the subsequent buyer will not be able to get insurance on the value of the vehicle. You still will be able to and should get liability insurance, but since the auto was totaled and paid for by an insurance company, no insurance company will pay again for damage to this vehicle. You only get one total payoff for the life of a vehicle.

Now, since your auto is 17 years old, and is not a classic car, it is not worth much. If you really like it a lot and cannot afford a newer auto, then go get it fixed and drive it until it dies. Just know that if you are the cause of an accident with this auto, you will have to pay the full amount to repair it. Another plus is you insurance will go down, as you will not be paying for Collision and Comprehensive coverage if you had that coverage before the accident.

 

[Van]

Well if you know someone who owns a repair shop have them write you an estimate for just the parts and take that into the insurance company. Get the money for the parts and fix it yourself and be done with it.

Had an 86 fiero that I bought in 93, it had 19k miles, year later to the week it stalls and goes up in flames after the throttle body cracked and the fuel mixture flooded the engine compartment. Insurance company valued it at 2g less than what I owed on it and told me tough luck so consider yourself lucky that they are even willing to pay it off.

 

[Hall]

Insurance company valued it at 2g less than what I owed on it and told me tough luck so consider yourself lucky that they are even willing to pay it off.

Again, I'm not defending the insurance companies, but what you owe and what's it's worth are two different things and not their problem. The insurance companies don't "value" the car either, they use 3rd party data like NADA or Kelley's. When our van was totalled, my insurance company (granted, the other guy was at fault and my insurance would re-coup later) took the base value, added in the (optional) aluminum wheels, luggage rack, etc, etc to determine the final value. They also rated it in "good" condition (and I would have said fair, i.e. lower than good).

Look at a case where someone is upside-down in their car loan and then trade it in on another new car and go further upside-down. Let's say their $20k car has a $26k loan against it. If they totaled it the next day, you know how many people think "they (the ins co) should pay off the loan" ?? Lots do....

 

[Paul Wozniak]

Its a 1990 Mazda Miata.

Yes, the other driver is 100% at fault, so my insurance won't increase nor will I get hit by higher costs. The problem is that no insurance company will fix a car if doing so is worth more than the value of the car itself. Their solution is to basically "buy" the car from you and declare it totalled. This is what is unacceptable to me.

I used to have the same car, great fun. Wish I still had it. Understandable why you would want to hang on to it.

 

[chaddux]

I don't know all of the rules and regulations of insurance but I did have a similar circumstance. In that case, the other driver was 100% at fault. If the vehicle can be repaired, you DO NOT have to have it repaired as long as repairs are not necessary to make it legally drivable. You can choose to accept payment for the value impairment of the damage (essentially equal to the cost of having it repaired). You may then choose to have it repaired or keep that money. That's why you see so many cars with damage. Not in all circumstances but in many, the driver chose not to have it repaired and simply pocketed the cash.

I would assume that the same rules would apply for a totaled car. They pay you for the value impairment (in this case, the value of the car). You choose to do with it what you wish. Now, if it was YOUR fault, it would be entirely different. Your insurance company can demand you turn over the car so they can scrap it and get some return on the payout. However, when it is NOT your fault, the other insurance company has precious few rights in control of your property.

Remember: when it isn't your fault, you and your insurance company are in control, not the other driver and their insurance company. Never give up anything you don't want to give up.