Can an auto insurance company total out a vehicle even after they approved of the auto body work to be done?

Question

I have to pay out of pocket for another persons car that I damaged.
The thing is, I don't want the insurance company to put in thousands of dollars in repair and then turn around and decide total it out. That would mean I'd not only have to pay for another vehicle, that I'd have to pay for the work that was done on the original car as well.

Is this fair ! or do they decide to total it out before even starting the work?

Answer 1

Your insurance company will assess the damage to the other car before they make a determination as to the disposition of it. If there is significant damage to the other person's car, they will most likely be going through their insurance company to get their car fixed, and then their insurance company will come after your insurance policy to recoup their expenses.

I have been involved in several car accidents where my car was totalled out, and every time that this has happened to me, they have let me know well in advance what their decision was going to be. The one time that I found myself in this situation (where there had already been work done on the car to fix it, and then they decided to total it out), the insurance company paid for the repair bill AND the car (someone in the claims center told me that they were going to total my brand new car out, and then authorized repairs to the car instead).

If you have any questions about this, you may want to contact your insurance agent to inquire about it. The other person that you may want to contact is your claims adjuster, as I am sure that they have heard this question before. Good luck, and I hope that no one was seriously injured...

Answer 2

Hi, they SHOULD pay you the 'market value' of your vehicle. However insurance companies being what they are they often try to 'diddle' you out of much of this figure. They will say that certain parts were 'worn' or damaged, etc., before the accident and will offer you a lower figure. Insurance companies do not get rich by paying every clain out without trying to screw some back from you. They get rich by having lots of 'small print' (which is NEVER favourable to you, the insured) and by paying out as little as they can get away with. Their version of a 'fair market value' is likely to be quite different from yours. If you are not satisfied with what they offer, get a 'reading' from 'Kelly's' (or whatever trade book is used where you live) and argue the toss. A claim supported by published figures has more chance of being successful, so don't give up. Stand your ground and fight for the maximum. Cheers and good luck, BobSpain

Answer 3

This happens on occasion. If repairs are complete and the shop is doing final inspection and test drive and discover there is a problem with say, the transaxle -- they inspect the unit and discover it was damaged from the loss and will cost $3,000.00 to repair and therefore, will push repair costs of the car over the total loss threshold. This is rare but can happen. MOST times these types of damages are detected before repairs are too far along and the shop is only paid for work done to that point.
If you hire a lawyer it will only cost you more money. It would have been FAR cheaper to have had insurance.

Answer 4

Yes it does happen sometimes. They get the car in the shop and as they open up the job they discover damage that couldn't be seen previously. Typically this happens in the first couple of hours work so a significant investment hasn't been made in the repairs.

It sounds to me that you were driving without insurance. The situation that you are facing is one of the major risks that you take on by driving uninsured. If you'd had insurance, your insurance company would have been taking on that risk and they're in a better financial position to do that.

As you are now painfully aware, you didn't save any money by driving uninsured. They've got you by the nutsack and they'll squeeze for all they're worth.

Is it fair? Yeah, in this case it is.

Answer 5

There should be a part of youre state government that oversees the insurance companys actions. Definately contact your state government information line and ask them for an answer to this question. Laws vary from state to state and I think this would be the best course of action for you. If you feel uncomfortable GET A LAWYER it could save you money in the long run. Good luck.

Answer 6

Have your insurance company talk to their insurance company.

If you didn't have insurance, now is time to get a lawyer.

If you are not represented by anyone, the other person's insurance company can and will do about anything they want to.

M

Answer 7

no usually they do and inspection forehand if it goes to the autobody it is getting fixed