Totaled cars - Dealing with unfair adjusters

by lakemen » Fri Sep 28, 2012 10:25 am

If you are not satisfied with how the insurance company is determining your car to be totaled, you need not panic. There is definitely a recourse from this.

When is a car considered totaled?

When your car gets involved in an accident that may or may not be your fault, it can be termed totaled if:

The cost of repairing the damage is more than the value of the car
The car cannot be repaired after the damage incurred from an accident

In such a case insurance companies usually offer to pay you the actual cash value (ACV) after subtracting any deductibles that you have.

Some companies total cars at 51% of its actual worth while there are others who total a car at 80%.

Can you have your totaled car back and get it repaired?

The answer to this could be both 'yes' and 'no'. While buying insurance you sign a contract with your insurer that you cannot compel them to pay you more than what your car is worth. However, you can request your insurance company to give you back your car. They will still pay you for the car and in this case you will get the ACV of the car minus the deductibles and salvage value they would have got at the yard. What you can do on your part is that check out with different repair shops about the actual cash value of your car. This way you can make a comparison and see if the car insurance company is being fair in determining the ACV of your car.

If you want to buy back a totaled car, it is your responsibility to get it repaired. This may not always be a wise decision to make because the cost of repairing a car can be huge and the money you receive from the insurance company for your damaged car may not be sufficient. Some states may require you to buy a special salvage title or may simply want you to have an inspection done on your totaled car after repairs. Some companies may even refuse to let you have the car because it will fetch them handsomely at the yard.

So, if you want to have your car back you must take a quick decision and ask the company to return the car to you. Once the car goes off to them you may have a hard time recovering it.

Can you insure your totaled car after repairs?

Mostly insurance companies do not seem eager to insure a totaled car that has been fixed. But some insurers do agree to have your car insured for a high price only after the repair has been done and the car is back on the road and has passed the DMV inspection.

What if the insurance adjuster wrongly values your car?

In many cases you may feel that the adjuster has put the wrong totaled car value on your vehicle. In this case you may hire an independent appraiser and get him/her to do an inspection of your car. The costs of hiring must be borne by you. Ask the appraiser to get you everything in writing and you can place that in front of your insurance company.

If you disagree with what the insurance company determines as the value of your car, you may seek from amongst the 2 options:

Arbitration
Litigation

In arbitration you and your insurance company can place the facts in front of a third-party arbiter. If it is a binding arbiter then the decision of the arbiter will be final. If not then you can still take your insurance company to court.

Total Comments: 55

Posted: Thu Nov 29, 2012 12:55 pm Post Subject:

This is a 5 year old vehicle in perfect shape with a crushed rear door and bent bumper.... totaled. I'm suppose to take their crappie 7 grand and find something of equal value?? where on the moon? AAA thieves....criminals................

You don't have to take what AAA is offering. You can simply sue the at-fault driver for what you believe is the full value of your loss. That could result in an increase in their offer.

Have you even taken the vehicle to an auto body repair mechanic for an estimate of the cost of repairs (or an evaluation of whether it is a total loss or not)?

When you sue, and the vehicle was used for business purposes, you can include damages for any verifiable impairment of your income.

You haven't said what state you are in, and each state has a limit on the damages that can be tried in small claims court. Your case is probably beyond that limit which means you have to battle this one in a higher civil court. That's going to require an attorney, at your expense, which will diminish the amount you walk away with, unless the court awards legal costs in addition to your damages -- they probably would, but do not have to.

And that's the hard part. If an attorney is going to take your case on a "contingency" basis, they will grab 30% to 40% of your judgment. If you hire them on a per hour basis, it will cost you somewhere in the neighborhood of $200-$400 per hour for trial time, and half of that or more for consultation and preparation, plus all of the filing fees and other expenses (if you ask for a jury trial, you have to pay for the jury, too) -- which could end up being more than the 30%-40%. And how do you monitor the time the attorney is spending on your case, to know whether their billings are accurate or not?

Talk about criminals!

AAA knows they have pressed you into the hard place between them and the rock. Stick to you guns and press them back. They will surely raise their offer some. Your effort to determine the value of your vehicle will help.

Posted: Fri Nov 30, 2012 12:29 am Post Subject: Car value

I bought a new car in August and had an accident in October . At first the adjuster along with the shop estimated the damages to be 8k plus. It has been almost five weeks the has been in the shop. I was told tody that there was a problem with the rims and the axle is leaking. The adjuster have agreed to pay the extra cost. However, I feel the car should have been totaled since the car cot 18k and the damages is over 10k. I also have GAP insurance on this car. The adjuster told me that in the state of NC the damage cost is way below the threshold. Is this true? He did not disclose the threshold amount, do you know it? I am not happy with all that is going on and could use some advice.

Thanks in advance!

Posted: Fri Nov 30, 2012 02:14 am Post Subject:

The threshold amount for a total loss is usually 75% to 80% of ACV. Even at $10,000 you're way below that threshold. What you can ask for, and will probably get, is an additional amount for "diminished value".

Part of the reason for the delay in repairs is likely the availability of repair parts. While the insurance company would probably prefer after-market replacement items rather than factory OEMs, there may not be any after-market parts available, and you may be waiting on the OEMs to arrive -- especially if it's an import. That could take 2 months or longer sometimes.

Posted: Thu Jan 10, 2013 12:47 am Post Subject: Help

I just got into an accident. My 1990 accord is still
drivable but the insurance company declared it as a total loss. They
said they would pay me 2K. I would have to fill an owner retention
form and send a copy of my title of the car. This way I would be able
to keep the car and get paid, as the cost of repairs is more than the
value of the car.

My friend earlier mentioned that if i had to
re-salvage the car I would need to buy a new title then and it would
cost me a whole lot of money. (If i had to sell my car in the future
i would only get about $500 for junk), But I would not be able to junk
the car if the car is not mine. My question to you is, if i fill out
the owner retention form which they would mail it to me and send it
back to them with a copy of my title and the owner retention form, do
i have the legal right over my car? Would i be able to junk/sell it
in future without having to get a new registration and title for it?

---

625 ILCS 5/3-117.1 An application for a salvage certificate shall be
submitted to the Secretary of State in any of the
following situations:
When an insurance company makes a payment of damages on a total loss
claim for a vehicle,
the insurance company shall be deemed to be the owner of such vehicle
and the vehicle shall
be considered to be salvage except that ownership of (i) a vehicle
that has incurred only hail
damage that does not affect the operational safety of the vehicle or
(ii) any vehicle nine model
years of age or older may, by agreement between the registered owner
and the insurance
company, be retained by the registered owner of such vehicle. The
insurance company shall
promptly deliver or mail within 20 days the certificate of title along
with proper application and
fee to the Secretary of State, and a salvage certificate shall be
issued in the name of the
insurance company. An insurer making payment of damages on a total
loss claim for the theft
of a vehicle may exchang

Posted: Thu Jan 10, 2013 06:06 am Post Subject:

if i fill out the owner retention form

"Owner retention" means the vehicle remains yours. A junking certificate in Illinois should not be especially expensive, it's just an alternate form of ownership recognition.

My friend earlier mentioned that if i had to re-salvage the car

Your friend doesn't know what he is talking about and has you all confused.

Would i be able to junk/sell it in future without having to get a new registration and title for it?

Here's where you are confused. If you sell (or junk) your car after retaining it as a salvage vehicle, the new owner is responsible for any title issues and fees, not you.

You misread the section of Illinois Statutes from which you quote. It says, specifically, (ii) any vehicle 9 model years of age or older may, by agreement between the registered owner and the insurance company, be retained by the registered owner of such vehicle. In such a case, the RO, not the insurance company, is responsible for obtaining the Salvage Certificate.