insurance company wanting to total my car

by Guest » Sat Nov 05, 2011 03:21 pm
Guest

Hello, I have a big problem. My car was rear ended while I was stopped at a red light. The other driver admitted fault and was cited. My insurance company, (Safeco) said my car was totalled with excess of 18k in damage. The other drivers insurance company, (USAA), also said my car was totalled with 14.7k in damage. They offered me 18.5k to total the car and 16k for salvage. The body shop where the car was towed gave an estimate of 12.2k in damage. The other drivers insurance, (USAA) claimed they total a car after repairs are 75% of the car's value. If my math is correct, 75% of 18.5k is 13.8k. If we use the salvage value, then 75% of 16k is 12k. With either value, the repair is either at or lower than 75%. My repair shop is willing to guarantee the cost of repair in writing. I pointed that out to USAA. They said it's not just the 75% figure they use, but "economic" considerations as well. I believe they are thinking my attorney will go after them for the diminished value of the car as well, therefore they would save money simply by totalling my car. I would like to know if they can total my car even though it's clearly under the 75% figure they use. Is this legal? Am I simply at their mercy? What can I do to fight this? I want my car fixed and I won't take no for an answer! I've already called USAA's complaint dept., but would like to know what my next steps should be just in case they decide no to fix my car. I would really appreciate any advice you can give. Thank you.

Total Comments: 7

Posted: Sat Nov 05, 2011 05:00 pm Post Subject:

Your numbers don't appear to be correct.

The value of the vehicle is $18,500. The car has $14,700 in damages. With $14,700 in damages a $18,500 car is not still worth $16,000 (your stated salvage value).

If a $18,500 car has $14,700 in damages than the salvage value should be around $2000.

Correct these number and then a reply would make more sense.

Posted: Sat Nov 05, 2011 06:50 pm Post Subject:

According to my lawyer, the insurance company said they would pay me 18.k for a total loss or pay me 16k if I decide to keep the vehicle and get a salvage title. If this isn't correct, then I will have to contact my lawyer and/or the insurance company and get a corrected value. The insurance company quoted me the damage estimate of 14.7k. So if they are willing to pay me 18.5k to total the vehicle, and 75% of that is 13.8k, then why won't they just pay the 12.2k to have it fixed? I guess I don't understand that logic. They did mention it wasn't just the 75%, but "economic" factors as well. Not sure what that could be. At any rate I just want my car repaired, that's all.

Posted: Sat Nov 05, 2011 06:57 pm Post Subject:

Okay... then they did not offer you $16,000 for the salvage. Your post was misleading. Yes, you can keep the vehicle, as explained by USAA. Keep the vehicle, take the $16,000 and have it repaired for $14,700. Pocket the $1,300. I'd recommend you check on your state laws and determine if the state will need to change the title to a salvage title. If so, the vehicle will be repaired but it will be worth around 25% less.

Would I do it? Probably not. I'd take the $18,000 and shop for another vehicle (as long as this one is not over financed).

Chalk this situation up to people who push DV claims. :(

Posted: Sat Nov 05, 2011 07:05 pm Post Subject:

I want them to repair my vehicle. It is still under lien. If the repair shop is stating the car can be fixed for 12.2k, which is under 75% of the 18.5k they are willing to pay me, why can't I simply get my car fixed? And what are my options?

Posted: Sat Nov 05, 2011 07:40 pm Post Subject:

First, they don't repair your car... a body shop does. They only pay for the loss. You are saying they are going to pay your $16,000 and the repair cost is $12,700. Where is the problem?

Let USAA know that the vehicle does not meet the states definition of a total loss so they should not be reporting this to the state. If they don't, then you just had the vehicle repaired, as you want, and pocketed a few thousand. Is that extra few thousand in your pocket a problem? If so, I'll give you my Paypal email address and I'll take it off your hands.

What USAA thinks is that the repair cost _will_ be $14,700 and that there will also be a supplement. They are also worried that they will then need to pay you diminished of value. If it were not for the possible DV claim, they would probably pay for the "repairs". As I mentioned, caulk up your situation to those who think they should be paid for loss value which really does not exist. People can't have their cake and eat it too.

But again, all of this is a moot point.

Posted: Sat Nov 05, 2011 08:12 pm Post Subject:

If it were as easy as just taking the 16k and getting the vehicle repaired for 12.2k, then that's exactly what I would do. I don't want the vehicle reported as a "total" to the state and having to get a salvage title. Also, since the vehicle is still under lien, I don't want the lienholder to step in and say prevent me from keeping the car. To my understanding, the insurance company will report the total loss to the lien holder, who then has the final say as to whether or not I get to keep the vehicle, since, technically, they own the car. At least that's how it was explained to me. I went to the insurance compamy's complain dept. in hopes they could or woud help me out. If they decide they're not going to budge and still want the deem the car a total loss, what are my options? How do I fight this and get my car repaired? Please advise. Thank you.

Posted: Sat Nov 05, 2011 08:19 pm Post Subject:

To my understanding, the insurance company will report the total loss to the lien holder, who then has the final say as to whether or not I get to keep the vehicle, since, technically, they own the car.


Yes, I just thought if that when I started to read this post. Your lien holder would need to agree to this. Depending on who they are, they may agree as long as they think the vehicle will be repaired to how it was prior to the accident. If you have a good payment history than if it's repaired the lien holder will continue to earn interest off of the loan. If it's totaled, it will be paid off early and they make far less interest.

I went to the insurance compamy's complain dept. in hopes they could or woud help me out.

They may change their minds but I doubt it. Bottom line, the insurance company can over pay all they want on a claim. This is actually what you are complaining about. If your vehicle had $1 in damages they could consider it a total loss and pay you $18,000. You are still in the drivers seat as far as keeping the vehicle and pocketing the extra money so there is really no complaint you have against the insurance company itself. Your lien complicates the matter but this has nothing to do with the insurance company.

How do I fight this and get my car repaired?

As I mentioned, your complaint is that they should not be paying you $18,000... that they should be paying you $12,700. I'm just not sure how far you are going to get with that argument.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.