Insurance wants to total my car and give me a check for less

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PostPosted: Sun May 17, 2009 6:45 pm   Post subject: Insurance wants to total my car and give me a check for less  

fender bender 2002 Acura. Airbags didn't even deploy. Believe insurance wants to write off just based on high miles, but car is still great runner and I just want to fix.

elvispretze1
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PostPosted: Mon May 18, 2009 1:21 am   Post subject:   

Insurance companies usually consider a vehicle a total loss when the cost to repair is 80% of it's value. Usually this is _required_ by the state. But even if it's not required, there is usually hidden damages which amount to another 20%. The vehicle insurance company does not want to pay more then they have to and if the cost to repair was under of the vehicle's value and they did not need to total it out, of course they would pay for the repairs.

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PostPosted: Mon May 18, 2009 6:53 am   Post subject:   

Elvis, as Tcope has mentioned the car is unlikely to be totaled if the repair cost doesn't cross the state decided threshold for totalling vehicles.



Quote:
fender bender 2002 Acura.




Is fender bender the only damage that has occurred to the vehicle or there were previous damages too?
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PostPosted: Tue May 19, 2009 1:43 am   Post subject: hey  

Even if it is considered a total loss some companies do let you keep the vehicle if it is not salvageable. Unfortunately your car is worth more to you then anyone else. Even the smallest accident can total a car. If I am going 10 mph and hit an object hard enough it can crack my engine block, damage the transmission or something to that extent and they will call it a total loss.



They will pay you like this:



Replacement cost - depreciation.

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PostPosted: Tue May 19, 2009 5:57 am   Post subject:   

Quote:
Even if it is considered a total loss some companies do let you keep the vehicle if it is not salvageable.




Would you describe the difference when a car is a total loss but not salvaged? I have heard many to use these two terms synonymously/interchangeably.
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PostPosted: Tue May 19, 2009 11:37 am   Post subject:   

Quote:
Replacement cost - depreciation.
sorry 007, when a vehicle is totaled the owner is owed the ACV (actual cash value) NOT replacement cost...



OP, you have first option of buy back....so find out the salvage value, and decide if you want to keep the car, contact your states DMV to see the rules regarding salvage or prior total losses and if your title will be branded...



Honey a 'fender bender' won't total an 02 acura...if you'd like to post all the infor for your vehicle (ie yr/make/mileage ALL options etc) I'll run a value...also the estimated cost of repair.


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PostPosted: Tue May 19, 2009 4:37 pm   Post subject: Lori  

actually the formula for ACV IS



replacement cost less depreciation....equals Actual cash value.



and simon:



a salvaged vehicle is a vehicle that is purchased from either the insuranc company or a junk yard and fixed up to be resold.



a total loss is a vehicle that can not be fixed up or could be fixed up. in the eyes of an insurance company a total loss is paid out when the cost of repairs exceed the ACV of the vehicle itself.

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PostPosted: Tue May 19, 2009 11:14 pm   Post subject:   

Quote:
a total loss is paid out when the cost of repairs exceed the ACV of the vehicle itself
...no, not exactly...a vehicle is deemed a total loss (ins claims wise)...when the cost of repair equals or exceeds the acv minus salvage recovery, or the state mandated percentage typcially 70-80% (repair cost is 70-80% of the vehicles ACV)...there are other OTL (obvious total losses) that are company and some times state specific, ie, flood line at dash, total burn etc..
Quote:
replacement cost less depreciation....equals Actual cash value.
That's not how I would define ACV at all...The ACV is what the vehicle is 'worth' on the public market, or what you could expect to pay or sell the vehicle for, (prior to the accident of course)...Or put another way...what a comparative vehicle can be purchased for (ie... a local 'market survey').



CA defines the ACV as follows:
Quote:
What Is Actual Cash Value (ACV)?

A. Actual Cash Value - Unless otherwise defined in the policy, actual cash value in California means fair market value. The fair market value of an item is the dollar amount that a knowledgeable buyer (under no unusual pressure) is willing to pay, and a knowledgeable seller (under no unusual

pressure) is willing to accept.


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PostPosted: Wed May 20, 2009 7:04 am   Post subject:   

You didn't state if this was your insurance or other party. If it is your insurance your insurance can actually total for any amount they want. Seen a car once that was totaled for about 10% of its value because they did not like the body shop that the owner picked for repairs. Check your policy.

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PostPosted: Wed May 20, 2009 9:52 am   Post subject:   

Quote:
a total loss is a vehicle that can not be fixed up or could be fixed up.




Now, is that so? I think one can also repair a totaled vehicle and make it road worthy. Well, you may not get a clear title on it but you can still have it fixed.



Totaled doesn't make a car un-repairable. Only it doesn't worth in the eye of the insurer to pay for its repair. Correct me if I’m wrong?
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PostPosted: Wed May 20, 2009 9:56 am   Post subject:   

Quote:
You didn't state if this was your insurance or other party. If it is your insurance your insurance can actually total for any amount they want.




That would be something interesting to know about. I've never heard of insurer totaling out a car only because it didn't like the bodyshop chosen by the insured. Can they do so?



Aren't the insured free to chose the bodyshop to fix their vehicles? Confused
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PostPosted: Wed May 20, 2009 11:29 am   Post subject:   

Quote:
Totaled doesn't make a car un-repairable. Only it doesn't worth in the eye of the insurer to pay for its repair. Correct me if I’m wrong?
You are correct Simon, anything CAN be repaired...but doesn't make economic sense to do so...see my prior post re: reasons vehicles total..
Quote:
Aren't the insured free to chose the bodyshop to fix their vehicles?
Oh course they are...there's more to that story than what's posted... Wink I'm absolutely sure... Wink
Quote:
a salvaged vehicle is a vehicle that is purchased from either the insuranc company or a junk yard and fixed up to be resold.
or from the original owner...a salvage titled vehicle is a vehicle that has been deemed a total loss...CA has a couple of other designations, i think one is 'unrepairable' which is different that a totaled or sal. titled vehicle..


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PostPosted: Wed May 20, 2009 7:07 pm   Post subject:   

Lori,



I am lic in the State of CA and the ACV= replacement cost less deprciation

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PostPosted: Wed May 20, 2009 8:04 pm   Post subject:   

It's semantics as it's the same thing. It's just that when it comes to a vehicle no one takes the price of a new vehicle and subtracts depreciation to determine the value. A sampling of the selling prices of similar vehicles is taken. But in theory it should be the same amount.



New - depreciation = ACV would typically be used for non-vehicle property losses. As in these losses the only option is to replace with new.

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PostPosted: Wed May 20, 2009 10:21 pm   Post subject:   

As Todd said it is semantics (kinda-but really is it)...unless maybe 007 you have a vehicle depreciation table.. Confused



Quote:
Lori,



I am lic in the State of CA and the ACV= replacement cost less deprciation




As I said 007 Directly from the State of CA dept of Ins website...



Quote:
CA defines the ACV as follows:Quote:

What Is Actual Cash Value (ACV)?

A. Actual Cash Value - Unless otherwise defined in the policy, actual cash value in California means fair market value. The fair market value of an item is the dollar amount that a knowledgeable buyer (under no unusual pressure) is willing to pay, and a knowledgeable seller (under no unusual

pressure) is willing to accept.




You hear ''your'' definition more toward personal property losses (if no replacement cost endorsement)


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