A new auto I own was involved in an auto accident. It suffered signifcant damage.?

Question

It was not declared a total loss by the insurance company, but the value of the car will decrease because of the accident. How can I convince the the insurance company to declare the auto a total loss?

Answer 1

Well.. First it depends on whose fault it is and whose insurance company is paying. If it was the other drivers fault then you have a lot of power over his insurance company. You can get away with a lot more because they want to make you happy, they don't want to piss you off so that you come back with a lawyer and sue them for damages to the car, yourself, your emotions and your mental health. So you can drop little tid bits like your back hurts a little and stuff like that while talking it over with them.

If it's your fault there's not much you can do, your insurance company will stick it to you unless the damage is close to 80% of the current value.

However, keep in mind you may be worse off than if you kept the car. They will only give you the current value, which for new cars sucks because it's going to be about $2-5K less than what you paid for it and they get to keep the car. So if you have a loan chances are you have interest and have baerly paid down any of the balance, that means your cash from the insurance settlement is only going to repay your loan and probably not leave you with enough for a new downpayment on another new car.

One other thing you can do, depending on the damge level is let them repair it. If the damage is limited to body panels and mechanical (fenders, good, bumper, wheels etc) it will probably come out looking like new without any problems. If the damage is more severe and there is damage to the unibody then you could get lucky and the body shop may not be able to repair the damage 100%. When you go to pick up the repaired car inspect it very closely, look under and around all the damage parts if any of the unibody is still apparently damage or there are large weld marks or imperfections in the repair you can refuse the vehicle. If you do that and you can prove that there is unrepairable lasting damage to the vehicle the Insurance company will have to total the vehicle and give you the blue book value. They won't want to do it so you'll have to jump through hoops and prove to them that there are lasting problems with the car.

Answer 2

The most the insurance company is going to pay is the value of the vehicle at the time of the loss or the cost to repair. If you don't want the vehicle, take the money and see if you can sell the PU as is to a body person who will fix it up. Then buy yourself another vehicle.

Answer 3

Before you try to get them to do that, find out what they would give you for a total loss. Chances are you won't be able to buy a new car like the one that got in the accident. You may not be any better off than if you get this one fixed and have a lower value car when you sell it in the future.

Answer 4

You can't.

A car will be deemed a total loss when the COST OF REPAIRS exceeds the ACTUAL CASH VALUE of the vehicle...before the accident, not after.

Some states mandate when a vehicle a total loss as well. Ask your adjuster. For example, in NV, state law mandates a vehicle be totaled when the cost of repairs exceeds 65% of the ACV, less paint & labor.

Answer 5

The insurance company will make that determination, not you. If it is fixed to as good as before condition, it shouldn't have any lost value as a result of the accident. If you aren't happy with it, sell it.

Answer 6

Unless the cost of repairs exceed about 80% of its fair market value, you're not going to have any luck with that. You can't convince them to do it if the numbers aren't right. If it's VERY close, you might be able to but if the repair cost is around 50% of the book value, forget it; it won't happen.