by arbitro » Thu Oct 29, 2009 06:58 pm
I have salvage title on a 2004 toyota. it was in a wreck and it's a total loss. My insurance is deducting 35% of the car value because of the salvage title. Is that reasonable? I think it's too much, considering that insurance company does not discount the premium on branded title.
Posted: Thu Oct 29, 2009 09:58 pm Post Subject:
There is definately an arguement to be made re: reduced premium on a branded title, but I've never seen that fight won yet..although I agree with you...
35% is at the higher end on a 6 yr old car. The way to determine this is to complete a market survey, call several local good used car dealers ask them what they would reduce their asking price (although they likely won't sell one with a branded title). Before you do that ask the adjuster how they came to that determination (35%). What state are you in?
Posted: Fri Oct 30, 2009 09:43 am Post Subject:
So, do the carrier determine this deduction upon an average of the reduced asking price?
Posted: Fri Oct 30, 2009 01:24 pm Post Subject:
So, do the carrier determine this deduction upon an average of the reduced asking price?
Yes, and no, they determine it (negotiable in most cases), but each carrier doesn't necessarily use the same means to arrive at this/their figure. Another reason I would want to know 'how' this number was determined.Posted: Sat Oct 31, 2009 04:39 am Post Subject:
I'M In Michigan, and All state is the insurance. From what i understood, they price the car or any car for today market value and than they lower the value by 35% if the car is branded.
Posted: Sat Oct 31, 2009 04:52 am Post Subject:
All State in Michigan was the insurance company. After they figure out the market value of the car, they would deduct the flat rate of 35% due to branded title.
Posted: Sat Oct 31, 2009 01:46 pm Post Subject:
I personally (and professionally) disagree with an across the board 35%...would 35% be the right number for say a 2008 camry? Damn skippy...but would it be the same 35% for an 1995 camry? or a 2000 F150? No I don't think so...The MI D.O.I. site is s difficult one to navigate, I didn't have any luck trying to find any answers..
My advise would be to ask the adjuster WHY the automatically deduct 35% and how that figure was arrived at....They HAVE to have some kind of data to back that up...they can't just pull that figure out of the air....Then if I disagreed with that number, and they wouldn't negotiate it, I'd do my own market survey, present them with that data, if nothing changed I would file a complaint with the MI DOI, (course tell them you are going to do same).
Depending on the yr/make, branded titles typcially reduce the value by 15-30% most of the time I'd say 20-25% is the norm.
Let us know how they came up with that number
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