Can you insurer reject your request to buy back?

Submitted by Anonymous (not verified) on Wed, 10/24/2007 - 21:50

I want to purchase my car back from the insurance company, since the var is FAR more valuable as it sits than what the buyback value could ever deem to be. The company however says that they cannot allow me to buy totaled cars. Can they do that?




Posted: 25 Oct 2007 08:33 Post Subject:

The company however says that they cannot allow me to buy the vehicle back.

Why? Have they sited any specific reason for not allowing to buy back the car?

Can they do that?

Well, that depends. The title of the car gets shifted to the insurance company once you let them declare the car ‘totaled'. Therefore, the Vehicle insurance company is now the legal owner of the vehicle.

However, although the chances of getting back a totaled car reduces once it enters the salvage yard but that might not restrict you from buying it back. Only you have to pay for the salvage title and bear the repair costs.


Posted: 25 Oct 2007 08:49 Post Subject:

Am I missing something? Your car was declared ‘totaled' and the company had settled the claim. Now you want to buy it back because according to you it is worth more than the buy back price.

How come it dawned before you suddenly?

Another point….even if you buyback the car the title of it will always carry the phrase ‘salvage' or ‘rebuilt'. This will reduce the price of the car significantly if you want to sell it in near future. Coloradoblitz

Posted: 25 Oct 2007 09:38 Post Subject:

Yeah sometimes retaining the totaled car does make sense, at least, when you can still drive it comfortably. But my friend, the process of buying back is not very easy. You have to undergo a prolonged process of buying the salvage title to rebuild the car and ultimately clearing the state's road worthiness test, before you can actually bring it back to the road.

According to Florida DMV, a car is declared total if it suffers damages more than 80% of its value. Find out how much it would cost to repair the car. If the repairing cost sounds reasonable to you, then go with the process of purchasing it back from the insurer. The insurer will then pay you the amount minus the salvage title.

Posted: 25 Oct 2007 10:08 Post Subject:

good morning Andrew and welcome

I need a couple of questions answered. Are you still in the process of settling the claim? If that's the case, 'retaining' the salvage is generally very easy unless Florida has some pecular law about owners retaining salvage, genereally the 'salvage bid' or percentage whatever your carrier uses to ascertain salvage value, is deducted from the loss payment along with your deductible, the title is stamped of course. Paper work goes to the state (your ins company sends that). And that's pretty much it.

BUT, if you had already settled this and the salvage 'dispersed' then you will have to buy it the same way anyone on the street would. All companies handle their salvage different, the companies I have worked for (2) both have had contracts with someone, the company I now work for ALL non-owner retained salvage goes to the Insurance Auto Auction, period. Then once they have the titles back in 'their' names they sell them on the block. So if that is the case, sorry but you waited too long and if you want it will have to stand in line and try and buy it. Or you might contact their vendor (whomever gets your companies salvage) and ask and negotiate a price and try and buy it before it is auctioned if that is their protocol. Understand?

I disagree with some of the posters I think there are many many times it makes sense for an owner to retain, and you don't have to always complete all the repairs either...some times it is even finanically wiser to retain and sell as salvage yourself!

Let us know the circumstances and we'll try and provide assistance.

Posted: 26 Oct 2007 06:59 Post Subject:

Claim has not been settled, this is like the first week of the claim. They do not have the title yet, and the car is in my driveway currently.

The buyback value, if at 10% would be around 1200, where I could EASILY sell the car for 4-5k in it's current condition with a salvage title.

The insurer is "response worldwide"

PearlS, what I'm looking for is something to tell them that legally they cannot deny my right to purchase the vehicle. THe vehicle is my property, and they have no right to tell me I cannot purchase the vehicle back from them as far as I know.

Thanks again :)

Posted: 26 Oct 2007 11:10 Post Subject:

what I'm looking for is something to tell them that legally they cannot deny my right to purchase the vehicle. THe vehicle is my property, and they have no right to tell me I cannot purchase the vehicle back from them as far as I know

. Try this call the Flordia Dept of Insurance
CONSUMER HELPLINE 1-800-342-2762

I know of no company that says this,

The company however says that they cannot allow me to buy the vehicle back''

UNLESS you have a lein.......

Posted: 27 Oct 2007 05:28 Post Subject:

they have no right to tell me I cannot purchase the vehicle back from them as far as I know.

And you know it very correctly. Lori has already given the information you need. Contact the Florida Dept. of Insurance. Hope there you will receive the much awaited help.


Posted: 26 Jan 2009 01:51 Post Subject: insurance buy back

is it any insurance company let u buy totaled cars from them like they sell to brokers or dealerships

Posted: 26 Jan 2009 03:38 Post Subject:

Some insurance carriers I worked for (trucking carriers) would not allow the vehicle owner to retain salvage. The carriers that I worked for explained it this way. Even if the vehicle owner properly obtains a salvage title and follows are state laws in doing so, the carrier did not want to be opened up to lawsuits in the future if the vehicle ended up back on the road and was in another accident due to shoddy or incomplete repairs. If it is all done properly, the carrier would not liable, but it does not mean that they wouldn't be sued. It could be this or it could be that they know that they can recoup more for the salvage to reduce claim costs. It really depends on the carrier and state laws. Lori might know this, but I thought there was at least one state that required that the vehicle owner got right of first refusal on a totaled vehicle.

Posted: 26 Jan 2009 09:50 Post Subject:

Dasfuk, I think that the OP wants to know whether the insurance companies sell salvaged vehicles themselves to individuals.

Moback, you might only have the option to retain your own car if you wish after it has been declared totaled. Some insurer might allow this, especially if your car is enough old.

Posted: 26 Jan 2009 10:00 Post Subject:

Well, the decision may well depend upon your state laws. You would like to browse through the DMV site for more information. Some states like-Illinois doesn't allow the owner to retain a totaled car.

Posted: 26 Jan 2009 02:01 Post Subject:

All states that I have worked in, the owner of the vehicle has first chance to retain or buy totaled cars , for either the contracted price or bid from whomever gets rid of their salvage, some carriers use a percentage...if they (owner) doesn't wish to retain/buy back the salvage then it goes to however the carrier handles their salvage many use IAA (ins. auto auction) some sell all of theirs to a particular yard, to some states not even allowing an owenr to buy back, i'm not aware of any...doesn't mean they don't though, i haven't worked in all 50 .... :wink:

The Ill. thing is a little mis-leading because there are a couple of reasons/ways you CAN retain salvage:

Retaining Your Totaled Vehicle
In an effort to minimize automobile "chop shop" crime, the Illinois Vehicle Code does not permit you the right to retain the salvage once the insurance company has deemed your automobile a total loss. There are only two instances that you may be able to retain your vehicle: 1) if the vehicle has incurred only hail damage that does not affect the operational safety of the vehicle, or 2) if the vehicle is nine (9) model years of age or older

Posted: 04 Apr 2009 01:46 Post Subject: salvage title

about to settle w/ins co.on totaled car. i've accepted cmv offered, less deductible, less salvage value. who gets salvage title? i'm thinking me, since salvage value is being deducted from total claim? comments, please.

Posted: 05 Apr 2009 04:56 Post Subject:

You get the salvage title if you are keeping the car. They will want a copy of the front and back for thier file so that they can verify that you had the title turned into a salvage title.

Posted: 08 Aug 2011 05:43 Post Subject: can i still drive

about to go get declaired unrepairable auto from repair shop and drive back home because i dont have time to look for another form of transportation to go to and from work at this time and accept ins offer that i keep and repair myself .Title is in my name and have untill next June before state inspection expires, will i have any problems driveing the vehicle while saving up more money to repair on my own ?

Posted: 13 Jan 2012 02:39 Post Subject: Smashed Rear-end

I live in Florida.My 2003 mint condition chevy cavalier z24was rear-ended.Both ins. companies say the car is totaled.I have not accepted that fact.If I let them total my car my only option is to buy used or go into hock for new. What would you suggest? I seem to be left holding the proverbial bag....not even at fault

Posted: 13 Jan 2012 05:12 Post Subject:

The real condition of the car will be the deciding factor in this case. If you think the car is not worthy of being declared a total loss, you can take it to independent body shops and get an estimate of the repair costs. If you think it’s worth it, you can file a claim with your insurance company and they will pay for the repair works. The other thing that you need to do is to file a claim with the at-fault party’s insurance company. The total claim amount might be enough to cover the cost of fixing the vehicle.

Posted: 10 May 2012 04:10 Post Subject: totalled car

I was hit , mot my fault , inssurance from other guy offering me not enough money but they want to keep my car so they can sell it on car action and make more money ! This is not logic ..You working hard to buy car and somebody hits you and his inssurance want to make money on you ! I paid that car it belongs to me especcialy when they dont giving me pice what that car worth ...shame on those big companies who just wanna make money on hard working people .. :twisted: :evil: That should change ! :!:

Posted: 10 Oct 2012 02:58 Post Subject: Price check for owner retained salvage vehicles

Insurance company tells me the Oner Rtained Slvage (ORS) for my car which is declared salvaged. They are telling this price to be 33% of offered cash value, which I am not confident that right.
ORS value usually is around 10%, so is ther ea website or reference to verify that price or a correct price. I still think 33% is too high, and everybody know the salvage lot company will not pay this much if I deny and keep the offered cash value.
My effort is to retain enoug cash to be able to fix the car upto level to feel satisfied.

Posted: 13 Oct 2012 12:42 Post Subject:

Ask the insurance company what their source of information was. Compare that with the information available from NADA for a vehicle similarly equipped and in a condition as yours was.

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