i was rear ended and the insurance company said my car might be consider salvige....it works fine...but the damage is bad.....i still owe the dealership....what should i do??.i want to keep my vehicle..and fix it...i dont want to loose money..what should i do???..please advice me
2007-11-20 10:41:55 · 10 answers · asked by minie 2 in Cars & Transportation ➔ Insurance & Registration
It's not really a choice that you have.
The state law (in most states) says that if the cost to repair the vehicle (including parts and labor) equals or exceeds 75% then the car has to be deemed a total loss. This is to protect consumers and prevent cars from being repaired that should not be repaired.
If the car is deemed a total loss - the first money goes to the bank - any equity goes to you.
The insurance company will pay the actual cash value of the car - not the amount of your loan - but what the car reasonably could have sold for given it's mileage and condition just prior to the wreck.
The best thing to do - is see what the insurance company determines on your car and have an open and honest conversation with the adjuster about your concerns.
2007-11-20 11:33:59 · answer #1 · answered by Boots 7 · 0⤊ 0⤋
Some really bad answers floating around tonight. No, insurance will not "pay it off." They will pay out the amount of fair market value it had at the time of loss if they decide to total the vehicle.
No, you can't "use the money you get from insurance to fix it up" because YOU don't get any money. YOU don't own the car, the finance corporation owns it, and the insurance check will go to whoever that is.
If that doesn't cover what is still owed, it will be your responsibility to continue to make payments. If you had GAP insurance it would make up that difference, but very few say yes to GAP insurance.
If you have enough to pay off your balance, and pay the salvage value of the car, the finance company will allow you to keep the car if you want to fix it.
Then, at least in some states, after it's fixed it would have to be inspected, and then it would be issued a salvage title. Insurance companies do NOT want to insure salvage vehicles, and it will make it worth much less as far as selling or trading it in with a salvage title.
I would suggest you let it go, and go from there.
2007-11-20 11:13:31 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
Typically, if an insurance company wants to TOTAL your car, they have decided that the vehicle is "not economically feasible to repair", hence, the car is worth LESS than it would cost to repair it.
On the other hand, if you are "upside down" in your car note, the insurance company can pay you for the Actual Cash Value (Replacement cost LESS depreciation) of the car (and that is all they are OBLIGATED to pay you in MOST cases) and you could STILL have money left owed to the lender/car lot.
See what they offer you (money wise) and do the math. See what you have left owing to the car lot, see if they will finance you another car and move on.
I wouldn't bother buying back the salvage. Do you have the money to repair it? Probably would not be safe or legal to drive.
Good luck and I hope this helps!
2007-11-20 10:54:31 · answer #3 · answered by Insuranceman 6 · 1⤊ 0⤋
The insurance will find out what your car is worth, pay your lien holder and any excess (if there is any) will go to you to assist in buying another car. If it is totaled and salvage is recommended I would suggest letting it go. There is probably damage that you can't see and would cause problems in the future should you keep it. As far as losing money...It depends on what you owe and what it is worth. (By the way....you do not owe the dealership...you owe the Bank or credit union) Good luck.
2007-11-20 12:32:11 · answer #4 · answered by Otto 7 · 0⤊ 0⤋
If it's a total loss, that means the cost to fix the car is more than the car is worth. The insurance company only has to pay whichever is LESS, so they are NOT going to give you enough money to fix the car.
If you can do the labor yourself, the money might be enough for parts. But the check is going to be made payable to both you AND the bank. So whatever you do, they have to approve.
2007-11-20 10:59:26 · answer #5 · answered by Anonymous 7 · 1⤊ 1⤋
if the vehicle costs more to fix than it's worth it's not a good idea. I would let them scrap it. but sometimes more is owed than the vehicle is worth then you're screwed no matter what because they will pay the loan company first and you will get what's left
2007-11-20 10:52:14 · answer #6 · answered by brian d 6 · 1⤊ 0⤋
well what you could do is have the insurance company pay you for the car and then you can buy it back from them and fix it
2007-11-20 10:46:58 · answer #7 · answered by hermitofnorthdome 5 · 1⤊ 0⤋
If they put a total loss on your car and pay you for what it was worth, and put a salvage title on it sometimes they will let you buy it back for a cost. Then you can fix it if you want.
2007-11-20 10:47:48 · answer #8 · answered by jamestk07 2 · 1⤊ 0⤋
IT THE TOTAL IT THEY WILL PAY THE (ACV) ACTUAL CASH VALUE AND YOU WILL LOOSE MONEY.
IF THEY TOTAL IT YOU CAN BUY IT BACK AS LONG AS IT IS SAFE TO DRIVE AND WILL PASS ANY TYPE OF INSPECTION IF YOUR STATE REQUIRES ONE.
THEN USE THE MONEY TO FIX IT UP SLOWLY AND STILL MAKE YOUR PAYMENTS.
GOOD LUCK
2007-11-20 10:54:57 · answer #9 · answered by Anonymous · 0⤊ 2⤋
INSURANCE SHOULD TOTAL IT AND PAY IT OFF,BUT THEN YOU NEED TO REPURCHASE AS SALVAGE VEHICLE......EITHER FROM BANK OR INSURANCE COMPANY
2007-11-20 10:46:25 · answer #10 · answered by Anonymous · 0⤊ 2⤋