Posted: Tue Jul 15, 2008 4:35 am Post subject: I have a 2008 car that was totaled
I have a 2008 car that was 5 months old with 10k miles on it.It is total loss.Is is wise to ask to retain it or leave it? The car was new in great condition.But it was financed and i still owe almost the whole amount that i bought it for. The insurance company will pay it off but i still want to keep the car. Do you think this is wise or not really?
Probably would not work out anyway. If you were to keep it, the insurance companies offer would then be the value of the vehicle _less it's current salvage value_. As the vehicle is very new, I'm guess it's salvage value would be very high. So there would be a good possibility that the insurance companies payment would no longer be great enough to pass of the loan. If it were not enough, the loan company would not settle the claim allowing you to keep the vehicle. Also, if you kept the vehicle your carrier should report to the state that it was a total loss and the state would then change the title to a salvage title. You don't want the vehicle with a salvage title. What would you do with the vehicle anyway... it would only be good for parts.
The insurance company will pay it off but i still want to keep the car.
Yeah, but only if you let them total your car. Otherwise, they'll cut a check to you that will carry a lower amount on it, 'coz they'll then subtract the salvage amount plus your deductibles from the amount payable to you.
I know that it hurts to see your brand new car being towed to the salvage yard, but in your case retaining the car, IMO, may not be a good call. You'll be better off if you let the insurance company total the vehicle. let me explain, why? supposing you've retained the car
you'll still be required to pay the loan on the car.
you've to bear the costs of repair, plus pay the deductible and its not going to be small amount considering it is the latest model car.
in addition to the above cost you've to make it road worthy by getting it inspected by the highway authority.
purchase the salve title and new number plate
Now the bright side of allowing the insurer to total the car
the check issued to you will take care of the loan, plus the sales tax, though you may still have to turn the entire amount to the lien holder.
you don't have to pay for the salvage title and other expenses.
though repaired and repainted, the car will lose in terms of trade-in value.
Regards, _________________ Register Now to have your Insurance queries solved.
I think it is best if you alow the insurer to salvage the car. The other posters are correct. _________________ I am an insurance broker from Ontario licensed for all types of insurance.
