Value of car totalled in accident

[swilshire]

My son got rear-ended when he was sitting at a red light. Other driver was charged. No question of fault.

How do I negotiate the best payment for my totalled car? I've pulled kbb value. I looked for comparables vehicles for sale briefly, but haven't really found any.

So far I've been playing phone tag with the claims person.

I also want to keep the car, since it's driveable and he can't afford a new one. I can't afford to buy one for him. How does that negotiation work?

Thanks for any advice you can offer.

Sheila

 

[Mel522]

Check out this site http://www.bankrate.com/finance/auto/totaled-car-bag-a-car-insurance-payout.aspx for how to calculate the value.

If you want to keep the car, the insurance company would subtract what they think they could get for the totaled car (which they obtain when they pay out for a totaled car) from what they would owe you. It usually ends up be 75% to 80%.

 

[reginaastralis]

I don't know how old your car is, but almost two years ago I had my car totaled. (they kept insisting it could be fixed, until a month after the accident when they took the car apart and found out the engine block had shifted 6 inches). I was always told not to accept the first offer, and if you share insurance companies they will really try to lowball you, so I was terrified.

However, my car was a 2007 (so only three years old) with 50,000 miles on it ... I was expecting them to offer less than 13,000, but they offered me $16,000 on the first offer. I didn't ask to keep it, I ended up getting really lucky and my grandma gave me her very old truck (1997, but 60,000 miles on it) The money paid for what I owed on the car, and left me about $4000, I would have had to spend that money on a down payment, but was able to pocket it.

Good luck ... it took almost two months for everything to be settled. The at fault driver was actually working for Child Protective Service and had just removed a child from their parents custody (kid in the back seat)when she hit me. It was a MESS.

 

[msmayor]

Not sure what the process is (if even possible) to 'keep' a car that the insurance company totals out.

I've always understood that when a car is totaled, the insurance company is actually buying the vehicle. When my car was totaled, I had to send them the title before I was sent any settlement money. There was no option to keep it.

In addition, once its been totaled, I would think that it would be difficult to get that insurance company to agree to continue to provide coverage. After all, in their view, the car is NOT worth fixing to drive.

 

[Kellydelly]

I was in an accident with my 97 Dodge Avenger 3 yrs ago where I was rearended and pushed into the car in front of me. Our insurance company was actually going to pay just over $3000 to fix my car, which was only worth around $1700 at the time. We told them that didn't make sense and the insurance company ended up paying us the difference between the amount they were willing to pay to fix it and our $500 deductible and we ended up with the car (which my husband banged out so you could barely tell it had been hit), and also around $2500. We had to drop the insurance coverage to just liability, no more collision. So we totally made out on that deal somehow . My car should have been totalled because the cost to fix it was more than the value but the insurance company wasn't going to total it. I don't think you get to determine the value of the car, the insurance company does.

 

[Kellydelly]

Not sure what the process is (if even possible) to 'keep' a car that the insurance company totals out.

I've always understood that when a car is totaled, the insurance company is actually buying the vehicle. When my car was totaled, I had to send them the title before I was sent any settlement money. There was no option to keep it.

In addition, once its been totaled, I would think that it would be difficult to get that insurance company to agree to continue to provide coverage. After all, in their view, the car is NOT worth fixing to drive.

I believe there is always an option to keep the car, it is yours, after all.

 

[danygirl]

If you want to keep a totaled car, the insurance subtracts the salvage value (maybe $500) from the settlement and you get to keep your car. Here are the catches
1. they won't insure it in the future unless you make needed repairs.
2. your state may reissue your title as a salvage title.
3. in my state we had to pass a state inspection before we could put our car back on the road.

We had one car totaled for primarily "cosmetic" damage and we fixed it and kept it.
we had one that was a hit and run and we did extensive body work to it and kept it
we had one car that the body man told us he could never make safe to drive again. out of the three it looked the best but the damage was at a critical part of the frame.we sold it for parts.

 

[mouseketeer_mom]

I don't have much to add to what others have mentioned but I will share my experience.

I was in an accident where the other person was at fault. My insurance company offered a payout that I refused. I was really young and didn't "know" that you should refuse the first offer but I felt like I had sound reasons. The car had tires on it that where less than 48 hours old. I maintained ALL of my maintenance records and the radio had been upgraded to a CD player.. (this was back in the olden days when not every car came with a CD player). Anyway, it was worth my rejection of the first offer. I think it was something like a $1000 difference.

 

[Darcy03231]

When DD's car was totaled I refused the first offer. We had already started looking for a "new" car and I knew the offer was low based on what we were finding that was comparable to the totaled car. I told the agent to fax me the list of comparable cars they were basing that number on so that I could go see them. The number went up by about $1200 after that, which was more in line with what we were finding.

OP, before you keep the car I would take it to a reputable mechanic to make sure its still safe to drive. Even though the damage to DD's car looked minor, it caused major damage that made it unsafe. Also, as others have pointed out, if the car has been totaled it might be very difficult to insure it in the future.

 

[Swimalie]

I'm not sure about the totaling part but as for looking at the value of it, check out NADA and Edmunds for more ideas on what it is worth. We were rear ended in our brand new car this past summer. His insurance fixed the car but we also went after diminished value. We used all 3 sites to determine the loss of value of the car now that it was in an accident. They offered us very low and we refused several offers until we were only $100 under our original amount.

 

[mrodgers]

I don't have much to add to what others have mentioned but I will share my experience.

I was in an accident where the other person was at fault. My insurance company offered a payout that I refused. I was really young and didn't "know" that you should refuse the first offer but I felt like I had sound reasons. The car had tires on it that where less than 48 hours old. I maintained ALL of my maintenance records and the radio had been upgraded to a CD player.. (this was back in the olden days when not every car came with a CD player). Anyway, it was worth my rejection of the first offer. I think it was something like a $1000 difference.

I had similar situation, but I didn't refuse any offer...

Purchased used Toyota Pickup for $7000 and drove for 3 years. I also had 48 hour old tires along with 48 hour old wheels. About $1800 worth. Not just an upgraded radio, I had $5000 worth of audio equipment. I made sure I removed everything before the insurance looked at the truck. Had the old stock wheels and tires sitting in the garage that I swapped for the new ones.

Kicker was, 2 days earlier it was covered top to bottom in mud from 4wheeling. I received a statement of worth from the insurance company. Tires extra clean, $50. Paint extra clean, $100. Engine and engine bay extra clean, $200. Drivetrain extra clean. Undercarriage, glass, interior, a whole list of stuff labeled extra clean. I got $8500 from the insurance company, $1800 over the book value of the truck.

I spent a lot of time detailing my vehicles back when I was younger. Of course, inevitably I would spend all the time detailing, then 3 days later, would go out 4wheeling with the buddies and it would be covered top to bottom with mud so that you couldn't tell what color it was. Lucky for me, I washed the truck the day before the accident.

 

[cvjw]

OP, just went thru a similar situation with my son. He was hit by a motorcyclist at top speed and the front of his car was taken off. He was driving a great used car, and we really wanted to keep it. My insurance agent of 20 years told us that we were powerless to stop the other insurance company from totaling the car - that was their right.

If they decided to total it, we could take the payout, or buy it back from them. If we bought it from them, we would have to have the needed repairs made and then take it to a State of Georgia agency who would deem the car safe (or not) for the road. If it was deemed safe, it would get a salvage title - which basically meant it could be driven, but not be resold. If the car was deemed unsafe for the road, you could not get a title - so you did all of the repairs for nothing.

My insurance agent discouraged me from doing this - he had several clients who fixed their cars, and could not get a salvage title from the state of Georgia. He only recommended this option to people who could fix their own cars for cheap. He also said that it took the agency weeks and weeks to get to your car - so you would be without that car for a while.

I feel your pain - accidents are a stressful situation. We are still dealing with my sons. The motorcyclist who hit him is trying to get out of liability. It is just a mess!

 

[swilshire]

In addition, once its been totaled, I would think that it would be difficult to get that insurance company to agree to continue to provide coverage. After all, in their view, the car is NOT worth fixing to drive.

I ask my the claims office from my own insurance when I talked to them and then confirmed with my agent that there is no problem with insuring the vehicle for liability only after it is totaled. My agent said that was quite common.

The car is a 1997 Subaru with over 224K miles on it. The value will be low, but it has been well kept and is mechanically in great shape. I probably couldn't buy another car for the $3000 or so that it will be valued out that would be as reliable until my son can afford a better one.

In Tennessee, you don't have to get a salvage title if the car is more than 10 years old.

Apparently the body shop told him the frame is not bent and that it would be safe to drive.

Sheila

 

[eliza61]

My son got rear-ended when he was sitting at a red light. Other driver was charged. No question of fault.

How do I negotiate the best payment for my totalled car? I've pulled kbb value. I looked for comparables vehicles for sale briefly, but haven't really found any.

So far I've been playing phone tag with the claims person.

I also want to keep the car, since it's driveable and he can't afford a new one. I can't afford to buy one for him. How does that negotiation work?

Thanks for any advice you can offer.

Sheila

Also be aware that it the safety integrity of the car (crumple zones, etc) have been compromised the insurance company flat out will not pay to repair the car. In my state of NJ it's actually illegal for them to do so.
My 2008 Nissan rouge was totalled in July of this year. I too wanted to keep the car since my car note was up in 3 months. I fought with my insurance company even going so far as to contact the state attorneys office.

I was told that since the side impact bars were bent and even if they were straighten and repaired it would no longer have the same integrity so the insurance company would not pay to repair it. Now please, don't ask me the legal mumbo jumbo behind the law (I'm assuming it's a result of some one buying a used car with inadequate safety protection) but that's what the state attorney told me.

We were forced to take the value. Now in defense of my insurance company they gave me a great settlement and I was able to buy another car flat out with cash.

Just wanted to make you aware that in some states depending on how bad it was totaled the choice of keeping it may not be there.

 

[seashoreCM]

1. The value should be retail value.

2. If you have not accepted money (settlement) from an insurance company then you can sue the other driver directly. His insurance company's job shifts from evaluating your car to defending him and paying whatever the judge orders.

3. IMHO it is okay to remove new accessories such as tires and sound systems, and to siphon out the gas from the tank, if this can be done quickly and easily. But the car has to be equally mobile as just before (such as equally towable) when you are done.

4. Sometimes the insurance company will allow a greater value if expensive repairs had just been completed.

 

[Melrosgirl]

Our car was totaled last year (not our fault). When we finally got the check, we had to take the title to them. They sold it for parts. Basically the entire front end was gone, but the rest of the car was fine, so they could sell it for parts easily.

Our car was only 8 months old. It was barely in the "total" range. Had we had a few thousand less miles on it, they may not have totaled it. We had special insurance coverage that gave us the entire MSRP of the car. Otherwise we would have taken a loss on it due to depreciation.

 

[arthuruscg]

My son got rear-ended when he was sitting at a red light. Other driver was charged. No question of fault.

How do I negotiate the best payment for my totalled car? I've pulled kbb value. I looked for comparables vehicles for sale briefly, but haven't really found any.

So far I've been playing phone tag with the claims person.

I also want to keep the car, since it's driveable and he can't afford a new one. I can't afford to buy one for him. How does that negotiation work?

Thanks for any advice you can offer.

Sheila

I ask my the claims office from my own insurance when I talked to them and then confirmed with my agent that there is no problem with insuring the vehicle for liability only after it is totaled. My agent said that was quite common.

The car is a 1997 Subaru with over 224K miles on it. The value will be low, but it has been well kept and is mechanically in great shape. I probably couldn't buy another car for the $3000 or so that it will be valued out that would be as reliable until my son can afford a better one.

In Tennessee, you don't have to get a salvage title if the car is more than 10 years old.

Apparently the body shop told him the frame is not bent and that it would be safe to drive.

Sheila

It is the other party's insurance that is paying for repair or replacement value of the car.

So, let the other insurance company have the car and make them pay to replace it with a comparable car. So there should not be a personal budget issue.

 

[angierae]

It is the other party's insurance that is paying for repair or replacement value of the car.

Depends on the state. In Michigan, as well as other states, your insurance company pays for your car, regardless of fault.

So, let the other insurance company have the car and make them pay to replace it with a comparable car. So there should not be a personal budget issue.

"Making" an insurance company do something is not always easy. Around here, they look at the average price a comparable car has sold for in our area in the last 30 days. When I totaled my car I actually got MORE than I'd originally paid for it, because I'd gotten a very good deal. (We bought two cars that day.)

 

[csharpwv]

As other posters have said - the accident wasn't your son's fault, so it's up to the other driver's insurance company.

Don't put your son in a wrecked vehicle - the day of repairing a vehicle after a serious collision are over - vehicles are engineered to be compromised in a way that protects the passengers, not the car.

The way crumple zones are engineered, the cars will conduct the energy from the collision in all directions, but protect the passenger compartment - so you never know where the physical energy may have traveled - you would likey have trouble with windows leaking, windshield leaking, bent frame issues, the trunk not sealing properly - the list goes on and on.

DO NOT accept an offer for less than what you feel is a fair value for the loss incurred.

My MIL's vehicle was totaled via a hit and run in the middle of the night right outside their home. The vehicle was paid off, and they offered less than what the KBB value was - my MIL flipped, and wouldn't answer their calls, but would call the claim rep back after hours and leave a detailed message on their voicemail about what her settlement expectations were. After a week of cat and mouse the insurance company finally gave in and escalated the settlement to his supervisor and my MIL got what she wanted.

Since it was a hit and run, and she was dealing with her own insurance company - she went back 8 years, calculated what she had paid in premiums, and what she had received ($0 they hadn't made a single claim in 8 years), and ask for the full value of her vehicle - and that's just what she got.

 

[gunka]

PP is right on. Do not accept anything you don't feel is fair/right. Remember they are a business and they will try and do right by themselves first. You will have to push them to do right by you and they will, but it takes some good negotiating. If you are not comfortable doing this, find someone who is and get them to help - it will be worth it.