The insurance will pay for the damages, but most are external. He wants to keep the car and still drive it with the damage (passing local inspections of course). Is there any legal or insurance issues with doing this?
2006-08-22 07:36:03 · 5 answers · asked by JSSmith13 1 in Cars & Transportation ➔ Insurance & Registration
Generally when an insurance company 'totals' a car they can then 'take posession' of the car. What then happens is that they sell it to a salvage yard to help 'make up' the loss. If your friend wants to retain the car after the insurance 'totals it' he can ask them for the salvage estimate to be taken off the payment. For example, let's say the car is worth $5,000 not wrecked so this is the amount that the insurance company would start with. From this subtract the deductible which would be applied if the accident was your friends fault. Let's say the deductible was $250. The insurance company would then pay your friend $4,750 and take posession of the car. If there was any leins against the car.. then payments to the lein holder would be paid out first. Now the insurance company will salvage the car and let say they are offered $750 for it. If you friend wanted the car then the insurance company would allow him to keep the car but the only pay out $4,000... as $750 was the salvage value.
The big caveat to this is that if there were leins on the car (loan) that were equal to or greater than the insurance payout, then the lein holder get's posession of the vehicle.
Now.. once an insurance company has 'totaled a car' that car will then carry a 'salvage title' which denotes that the car has been damaged to such a degree that the cost to fix was more than the replacement cost. You can certainly have it fixed to where it is safe and inspectable and drive it all you want.
My wife's car has a salvage title and it's a great car.
Hope this helps and good luck!
2006-08-22 07:52:43 · answer #1 · answered by wrkey 5 · 0⤊ 0⤋
One of the options you have when a car is totaled is to retain it. However, you collect much less when you do that. You can still keep it on the policy and carry liability coverage, but your insurance company will not let you have comprehensive or collision on it. You will have to get a salvage title for the vehicle, and if it's in another accident then you're in for trouble there too because the other company won't "total" a car that is already a total. And by the way, if he's a "fiend" why are you trying to help him?
2006-08-22 13:53:51 · answer #2 · answered by Chris 5 · 0⤊ 0⤋
If the car is 'totaled' the insurance company will want it for salvage. They have 'purchased' the car with the settelment. He can buy the salvage for near nothing but will not be able to get a clean title until the vehicle has been repaired by a licensed auto rebuilder and passed inspection. Then he has to find someone to insure it. I see people wanting to do this all the time. Trust me, it isn't worth the effort.
2006-08-22 12:15:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If they totalled it, they assume ownership and take the title in return for the payment. Somecompanies will let you buy it back for a price they determine. At that point, it's yours again. If you can get it to a condition where it's legally roadworthy, you can drive it.
2006-08-22 07:44:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
if insurance totals it he has the option to buy it from insurance. and fix it himself...and then he can drive it on a salvage title..and yes he can get basic liability insurance coverage oncce the car has been fixed properly
2006-08-22 08:02:38 · answer #5 · answered by mommy2savannah51405 6 · 0⤊ 0⤋