by libbishebo » Sat Jul 17, 2010 04:39 pm
I was involved in an accident where the other driver was 100% at fault. Her insurance company(liberty mutual) totaled my car because the damage was more then the value. We want to buy the car back because we can fix it for the amt of money they are giving us but they are saying they will give us a title of destruction and we can only use it for parts. Can they title it as a salvage title so after we get it fixed we can have it inspected so we can drive it on the road again. Our mechanic said it was not damaged that bad but because of the air bags being as expensive as they are it made the price go over the value of the vehicle. The vehicle is a 1996 mustang convertible and we had just updated it a few wks before the accident(new paint, roof, new leather seats,lights, new gauges,etc.) spending over $4,000. The insurance company isn't give us much of that money back put we have had this car for years and it only has 65,000 original miles so it is well worth buying it back. I am located in Florida and any advice you can give me would be appreciated.
Posted: Sat Jul 17, 2010 04:53 pm Post Subject:
The insurance company does not issue title to a vehicle. That is purely a matter reserved to the state of Florida. When a vehicle is totaled, it may be restored to street legal status, but can only be registered with the title showing as "SALVAGE". This is intended to prevent a vehicle from being totaled more that once in its lifetime. So while a salvage vehicle may be perfectly safe to operate, and go on to run perfectly well for many years into the future, it cannot normally be insured for collision and certain portions of other-than-collision (comprehensive) coverage that could result in another total loss.
If the vehicle is repairable, it should not be subject to "destruction" just because an insurer is unwilling to pay the full value of the repairs, and instead is choosing to base its claim determination on Actual Cash Value (replacement cost minus depreciation). That's their choice. But if they pay a claim as a total loss, the vehicle becomes their property and they can dispose of it as they choose, which includes selling it back to you (or anyone else) for its salvage/destruction value.
Having a "stated/declared value" policy would prevent such a dilemma.
I am not personally familiar with the Florida Vehicle Code, under which there may be a form of title known as "Destruction", but others on this forum are, and I'm sure they will add their knowledge to the discussion.
Posted: Sat Jul 17, 2010 04:53 pm Post Subject: insurance
Hi.. :D Just a comment here. is your mechanic pretty trustworthy? Sounds like he's giving you some good advice. Obviously the car WOULD be 'totaled' if the the cost to fixit is worth more of the value of the car. trying to get Salvage Titles, can cost you MORE money, as well. Aslo..you should think of the 'safety issue' with this..ya know (ie: would you feel safe having your children in the vehicle, etc)?
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