if theres an accident with minor damage (dents, paint job) and it costs about $3000 or so, but the value of the car (honda civic 88, about 1200), will insurance companies spend the $3000 on the car if the value is less?
2006-09-04 12:15:48 · 16 answers · asked by aleraiders 2 in Cars & Transportation ➔ Insurance & Registration
If the cost of the damage exceeds the value of the vehicle, the vehicle will be declared a total loss and the owner will be paid the value of the vehicle. (less any deductable). They will not pay more for repairs than the car is worth!
2006-09-04 12:18:34 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
Here is what you can expect to get:
1. The book value of your vehicle - your deductable - the salvage value of your vehicle (if you decide to keep it)
2. Here is an example. Say your car is worth 1200. You have a 500 ded and the salvage value of the vehicle (the value for the parts) is 150. If you keep the vehicle, you would get 550. If you surrender the vehicle (in essence you would be selling your salvage to the insurance company) you would get 700.
If the vehicle still drives, keep it because the 150 will not buy you a new car. If the vehicle won't drive, surrender it.
In no case will an insurance pay more on a claim than a vehicle is worth. In fact, if your vehicle were newer, the insurance company might total it if it were damaged at 70% of book value. Since your vehicle is older, and would not need a salvage title, the insurance company would not total the vehicle until damage is at 100%. In your case, you are way over 100%, so the percentages don't really matter.
Good luck!
2006-09-05 15:02:44 · answer #2 · answered by Spork 3 · 0⤊ 0⤋
Usually they won't. I did get involved in an accident back in the late 70's when we had a gas shortage. I had a very economical car, but I had recently purchased it as a used car. I was in a three car pile up and my car was totaled. The insurance company was going to pay the bank what was owed on the car and leave me nothing for a trade in or down payment. My father mentioned that the kind of car I had was probably worth more because of the gas shortage. They agreed to call three car dealerships and ask what they would sell the car for and average that and give me the difference. I ended up with down payment money. Once you know what the insurance company wants to do, ask them if your cars value may be higher because of the high cost of gas right now. Can't hurt. They may say no, but they may say yes. Hope this helps you out.
2006-09-04 13:05:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Not usually, it depends on the insurance company as to whether they will repair or replace or pay out the book value. once the damage comes to a level higher than the book value of the car they will total it. Sometimes they will give the owner a buy back option, if the vehicle means that much to you it may be possible to keep it.
2006-09-04 12:21:28 · answer #4 · answered by Allen 3 · 0⤊ 0⤋
No. If the cost to repairs is within 75-80% of the Actual Cash Value (ACV) they will deem it a total loss. So you will not be able to get it repaired unless you choose to retain the vehicle and not sign the title and car over to the insurance company. If you do that, the insurance settlement will be less than the total loss value and you'll be on your own to get it fixed. In addition, you'd have to get a salvage title afterward.
2006-09-04 12:31:47 · answer #5 · answered by Chris 5 · 0⤊ 0⤋
General practice is to give only the "actual cash value" of the car as it existed before the loss. Insurance companies have standard methods of calculating this, but there are variations in what types of coverage and what is excluded. I'd advise you to contact your agent to find out for sure. If your car isn't worth too much, you can consider that when purchasing the various forms of coverage. Good luck!
2006-09-04 13:00:39 · answer #6 · answered by Dave 5 · 0⤊ 0⤋
They will try paying the least amount they can get by with.
If the car is custom or mint they can be made to bring the car back to pre-damage condition.
If you just bought the car that could set the value if you payed more than the book recommendations.
2006-09-04 12:25:05 · answer #7 · answered by Robert F 7 · 0⤊ 0⤋
No. They won't even spend $1,200. The wrecked car is worth something, so they'll subtract what the car is worth now from what it was worth before the wreck, and what's left is called the "Total Loss Threshold". That's the maximum they'll pay to repair the car.
2006-09-04 15:06:55 · answer #8 · answered by Anonymous · 0⤊ 0⤋
They will not go above the value of the car.
2006-09-04 17:00:44 · answer #9 · answered by PeppermintandPopcorn 3 · 0⤊ 0⤋
Probably just give you the book value
2006-09-04 12:18:31 · answer #10 · answered by Billy S 3 · 0⤊ 0⤋