how do thet figure the pay out on a savage title (theft)

by stewartnt » Mon May 25, 2009 12:08 am

i had a 1996 nissan sentra w/ less than 65,000 miles on it. A family friend buys wrecked cars, does the body work, and resells them. Did i mention the man is a perfectionist? This car was honestly near perfect when i got it. i was told by the insurance company when it was stolen to look at auto trader and nada for what similer cars were going for in my area (around $4500). When the insurance company found out about the salvage title, they told me to expect $1850 after my $500 deductable. This really doesn't seem right? Feel like they are taking advantage of my lack of knowledge

Total Comments: 8

Posted: Mon May 25, 2009 12:42 am Post Subject:

A salvage title usually reduces the value of a vehicle by 25% as a rule of thumb. It's not that the car was not in perfect condition... it's that people are not willing to pay top dollar for a vehicle with a salvage title as they never know what they are going to be getting. As such, they typically sell for less. Would you pay top dollar for my car if I told you it was totaled out due to flood damage?

Posted: Mon May 25, 2009 02:02 am Post Subject:

Unfortunately, the car may have been in perfect condition to you...but tcope is absolutely correct - The car is worth far less than one with a clear title. There are many people who enjoy buying salvage titled vehicles because of the low price...but they pay for that discount when they try and sell the vehicles. Some states no longer even allow you to register a vehicle that has or has had a salvage title. Some insurance companies won't insure them. It's always a good idea to look at the whole cost of a vehicle...and not just the price.

Sorry to hear about your vehicle...!

Posted: Mon May 25, 2009 03:59 am Post Subject:

ok thanks for the info, but that still leaves me one problem. They are what attempting to give me half of the car's value indtead of 75%. What is the best way to argue my position? Do i need a lawyer?

Posted: Mon May 25, 2009 04:14 am Post Subject:

Speak to a supervisor. Let them know that you asked several other adjusters about the worth of the salvage and that they all told you that as a rule insurance companies reduce the vehicles ACV by 25%, not 50% when it has a salvage title.

Posted: Mon May 25, 2009 06:16 am Post Subject:

Hi stewartnt,

They are what attempting to give me half of the car's value indtead of 75%. What is the best way to argue my position?


Did they give any explanation for this 50% value reduction? Please give us a clear account of your conversations which followed.

Steven

Posted: Tue May 26, 2009 04:00 am Post Subject:

instead of getting all into that w/o knowing whs
at i was talking about i just said i was going to do some research and get back to them

Posted: Tue May 26, 2009 07:06 am Post Subject:

Well stewartnt,

Are you thinking of going for an online research?
Please go through the different sections over here and I'm sure there are quite a few valuable articles. Also, don't hesitate to ask the community friends regarding anything.

Steven

Posted: Wed May 27, 2009 10:28 am Post Subject:

Stewart, typcially the way I (as an adjuster) handle salvage titled vehicles is a local market survey..call about four good used car dealers and ask what they would ask for this vehicle (discribe your car pre-accident)...then ask how much after they know it has a salvage title...you can get the percentages that relate locally that way...they will tell you at the on set they would take all such cars to the auction, and they would...but explain you're in a tough situation, and really need some help...make sure you write down who you talked to date/time, and who they are with...

Could be (unfortunately) that in your area 50% is the norm/average...

The adjuster also needs to provide you with written proof HOW they determined the value of your vehicle including the reduction for the salvage title...have them get that to you in the meanwhile...

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