insurance issue

**30AnnivStang** · **insurance issue -** 12-11-03, 03:02 PM

I'm trying to help a friend understand his insurance issue. Hopefully someone here can help me.

My friend's car is "worth" $2500 as far as his insurance company is concerned.

The car was vandalized to the tune of a $2000 paint job and body work.

The insurance company says it is a total loss, therefore the should give him $2500 for the car right?

He should be able to "purchase" the vehicle from the insurance company at salvage value, roughly 20% right? that's $500 for his car. so he would recieve a check from the insurance company for $2000. (minus a deductible too maybe?)

Also, the car is free and clear, so he has posession of the title, so it would remain clear right?

Krusher · 12-11-03, 05:38 PM

yes, they give the current value minus the deductible... and no, it would be reported to the dmv from the insurance company as a totaled car. If he didn't file for a reconstructed/salvaged/whatever they call them title then he'd be falsifying information for a title... Sometimes the best thing to do in this case is to take the money and go for a down payment on a new 03 cobra

**30AnnivStang** · 05:44 PM

Quote:

Originally Posted by Krusher

...they call them title then he'd be falsifying information for a title...

huh?

and unfortuntly i think the cobra is way out of his price range.

so, he'd get ACV-deductible-salvage amount. would it really be considered salvaged just for a paint job....that sucks.

Krusher · 12-12-03, 07:45 AM

insurance companies don't have seperate columns for totalling... they report the car as totaled to the dmv, not "paint job totaled" or something like that. This title really doesn't hurt as long as your keeping the car.

This is how I came to own a mustang... my 1992 Tbird Sport was totaled by the insurance company.

gemex · 12-12-03, 03:37 PM

A lot of people don’t realize you can negotiate with your insurance company. I have many many times.

**30AnnivStang** · 03:48 PM

Here's what I told him to do.

Take the Low ACV (actual cash value)-deductible-salvage cost
2500-250-500= 1750

This is better i think than trying to get them to give him more. Even if they give him 3 grand, what can he buy? his car he has right now is pretty nice, even though it's older. If he argues up the ACV, that will cause the repair amount to fall below the magic 75% of the value of the vehicle. so then he gets a $2000 paint job and no cash in pocket.

I figure he can get a good paintjob for around a grand or less (we know a few paint guys, and they are good). Then he's got 750bucks for mods on his car.

with the value at only 2500, resale RIGHT NOW might be 3grand, so in 2-5 years when he's ready to get rid of it, it's not gonna be worth anything anyway, so who cares if the title is marked "totaled"

what would you guys do in the same situation?

gemex · 04:59 PM

That’s probably how I would handle it in his situation.
Keep the car and keep some cash.

Most decent totaled cars can usually get a grand anyway if they’re running. I would try to get the cheapest paint job possible. A car like that only needs to look decent, the more you put into the paint the less you’ll probably get back when he sells it down the road.