Has anyone bought a car that has been considered totaled back from their insurance company? My 03 GT was totaled thursday night and they are saying that you cannot buy it back due to people abandoning stripped vehicles. Does anyone have any knowledge on this issue? Any assistance will be helpful

 

This is from Edmunds.com


A Total Loss?
Tips for Filing a Claim After a Serious Car Accident
By Steve Siler


You're OK. Your kids are OK. You have much to be thankful for.

As for your car, well, there's not a lot left. The last time you saw it, it was being hoisted heavenward with two limp, deflated airbags dangling from the dashboard and broken glass littering the footwells. The front-end sheet metal resembled a rice-paper lampshade after a cross-country move. Questions start filling your head. Will you ever see it again? Should you start looking for a replacement? And at this point in time, is your auto insurance company a friend or foe? What if your car is rare or collectible? The following step-by-step guide helps answer these questions and more to help you survive the scrutiny of your car insurance company after you've survived a serious accident.

Step 1: Brush up on your car insurance policy, before an accident occurs.

Most of us know generally what kind of car insurance coverage we have — liability, comprehensive and collision, for instance. However, when it comes to the fine print, there are terms about which most of us have absolutely no clue (but that are sure to surface when it comes time for your insurer to shell out cash to repair or replace your damaged vehicle). So in order to make sure you are dealt a fair hand when the dust settles, sit down with your agent and learn what those big terms in the small font really mean. We advise doing this before a serious accident occurs, particularly since insurance agents tend to be far more pleasant to deal with when they're not in the middle of a messy claim.

If, however, you're reading this in the aftermath of a bad accident, it's crucial that you understand what you're entitled to moving forward. So when you're done reading this article, bite the bullet and talk to your agent about exactly what your policy covers (not just in relation to this accident, but everything else, too). And bring cookies.

Step 2: Get moving again.

If you have rental car coverage, rent the best car your coverage allows and get moving again. Having a rental car will at least help keep the rest of your life from falling apart while you get this matter settled. Depending on your coverage, you may not get as nice a rental as what you actually own, but at least you won't be stranded at home or burdening your friends and neighbors for rides while you deal with repairing or replacing your car.

Talk to your agent before you rent a vehicle, because you may still be liable for collision damage to the rental car as well. Policies vary in the way they cover this, so check the language of your policy before renting a car.

Step 3: Check your state's department of insurance for a list of your rights as an insured driver.

Every state regulates its car insurance companies to some degree in order to protect its citizens from being shortchanged or cheated after filing a claim. Some states are more closely involved with this process than others, so log on to your state's governmental Web site and search for its department of insurance to find more information regarding the fair settlement of insurance claims. You will often find a bounty of helpful information that will guide you as you move forward in this arduous task.

Step 4: Find out how much your car was worth before the accident.

Claims adjustors from your car insurance company use a combination of dealer surveys, value guide books, online pricing sites and actual private party sales to determine your car's actual cash value (ACV). They also factor in things like sales tax, registration and title costs of a replacement vehicle to determine this amount. Proprietary as they are, these determinants can vary from company to company and state to state. Ultimately, then, what one company comes up with may not match what another may find, or even what you'll come up with on your own, using consumer Web sites like Edmunds.com.

A bit of advice, then: don't just take their word for your car's ACV. Involve yourself in the evaluation process. Do some research on your own, because the higher your car's ACV, the bigger your check is going to be if they determine it's been totaled. In some instances, such as if you have a particularly rare trim level, color combination or special edition of a vehicle, you may know without a doubt that your car is worth more than what the insurance company tells you. Don't be afraid to present your case and ask them to make an adjustment — if your argument is sound, companies will probably listen to you. In fact, your insurer is required by law to give you a fair price, and they won't want to fight you in court if it looks like you could win. But you may have to do the extra legwork of finding an independent appraiser and/or compiling research on your specific car to bolster your case.

Step 5: Agree upon a fair evaluation of the damage.

Auto insurance companies must do a visual evaluation of the damage to your vehicle to begin estimating the cost of repairs. It helps to be there with them when they survey the damage, so that you can point out anything they may overlook. Make sure that they see all damage in order to ensure a proper settlement.

Keep in mind, however, that the more damage they see, the more likely it is that your car will be declared a "total loss." Here's where it gets hairy, since, depending on how much you love or hate your car, the concept of total loss can be a bad or good thing. First, a definition of the term "total loss."

According to the Insurance Consumer Advocacy Network (I-CAN), a self-help Web site for consumers run by a former insurance adjustor, insurance companies define a "total loss" as: Huh? Simply stated, if compensating you for repairing the car, renting something in the meantime and paying you what your car has lost in value costs more than what they'd shell out to just buy you a replacement and then sell your wreck to a salvage yard, you're not going to get your car back, but a check instead.

If the estimate your insurer comes up with is questionable to you, check your policy for an "Appraisal Provision" that would allow you to get an independent appraisal of the damage, which would then be reviewed by an "umpire" jointly selected by your appraiser and that of your auto insurance company. If the two appraisers can't agree on an amount of your car's ACV and damage, the umpire steps in, basically to take one side or the other to help resolve the issue. While you have to pay for your appraiser, and share the umpire's fee, it may be worth the expense if you really feel that your auto insurance company is trying to give you short shrift.

However, given the sizable expense of fixing a damaged car, compensating you for lost resale value, rental car costs and so on, it's easy to understand why insurance companies often throw up their hands long before the repair bill exceeds the car's ACV. For example, some companies consider a wrecked vehicle a total loss when the total cost to repair it exceeds just 51 percent of the vehicle's ACV. Others don't give up until the repair bill hits the 80-percent mark.

This explains how a company can send an older car to the scrap yard after a minor fender bender, then turn around and call for a very damaged late-model vehicle to undergo extensive surgery. It can be helpful to know beforehand how your company deals with this kind of thing, even though it may not change the outcome of a claim in the long run. This way, at least you're not in for a shock when they come back and tell you ol' Bessie the Buick's not coming home. Also, be sure to ask how your auto insurance company deals with any aftermarket additions, such as custom wheels, that you may have installed on your car.

Step 6: Decide if you want the car back.

After a really serious accident, many people are inclined to go ahead and find a comparable replacement (or even take the opportunity to upgrade to a nicer car) rather than get their car fixed, since repairs sometimes cannot return it to its original quality. And even if a car can be repaired to "like new" condition, it will still have lost a significant portion of its resale value simply because it has been in a major accident (you can sometimes get back some of this lost value if you file a diminished value claim). Further, a new car can also make it easier for a family to move on psychologically after a traumatic experience like a serious accident.

But if your sentimental attachment to your car is so strong that you just can't imagine life without it, you can take the money and apply it to repairing her on your own, which, depending on the extent of the damage, could get quite expensive. Furthermore, the check your insurance company cuts you will be reduced by the amount it feels it would have gotten from the salvage yard, a check that's already been reduced by your deductible, whatever that is. So if ol' Bessie is, say, a 14-year-old Le Sabre, that's going to leave you with a pretty small check. You also may have to file a salvage title with the DMV.

That said, consider this little bit of irony: a car's "total" value is almost always less than the sum of its parts — literally. Indeed, parts are what salvage yards are interested in, since they make their money by selling what's left of your car, piece by piece. If you are likewise inclined to sell it off for parts, you may actually make money. But keep in mind that you will have to arrange for the legal dismantling, advertising and sale of those parts on your own. Not to mention the fact that the rusting, rotting carcass of your old car will be living somewhere on your property for the foreseeable future. And even if you're OK with that, consider also that dead old cars become dangerous playpens that neighborhood kids find hard to resist. Need we say more?

In any case, if you want to hold on to a car that's been considered totaled, inform your agent as early as possible in the process, since the longer you wait, the closer your car gets to being auctioned off to the highest bidder at the salvage yard.

Step 7: Move on: get your car repaired or get it replaced.

Depending on how long your rental car agreement provides you with transportation, you may have to start looking for a replacement car very soon if you car has been totaled. It may behoove you to be thinking about that even before the auto insurance company has determined whether it will repair your car, or how large a check it will write you.

Remember also that if your car has been totaled, your settlement must include taxes, title and license fee for a comparable replacement. Likewise, the settlement must make clear the value of any deductions taken on account of salvage matters if you're keeping your totaled car.

One final bit of advice: If your vehicle was not totaled, do not let the auto insurance company dictate which repair shop you use. They can make recommendations, sure, but definitely find out why they recommend a particular shop. Compare their recommendations to those you get from friends and colleagues.

Dealing with car insurance matters after an accident is no fun. Just keep in mind that the sooner you take care of all of this, the sooner you and your family can put this whole thing behind you.

 

Here's the deal. No one, not even the insurance company, can make you sell your car. But, the insurance company has a responsibility to the lienholder (your bank, finance company, etc.). The finance company gets up to the amount you owe before you see a dime.

Example: Say your '03 Mustang is worth $10,000 (I'm just using round numbers, don't freek out ). If you owe $7500, the lienholder gets the first $7500 and you get $2500. Simple, right?

Let's say you owe $12,000. You get nothing. Zero. Why? The insurance company doesn't owe to pay off the car, just it's value. The insurance company can't control what kind of deal you made to get into that car. Some lease car policies include gap insurance, but I haven't seen this on a regular policy.

What makes a total loss? A car that has more than 80% in damage compared to the value of the car (this perceptage can vary by insurance company such as 70% or 75%). So if the car is worth $10,000, the car is a total loss at $8000. A car can be a 'constructive' total loss if a good portion of the damage may be hidden. If an estimate equals 65% of the ACV (actual cash value), but it hasn't been torn down yet (think tow yard), the adjuster may consider the car a total loss if there is the likelyhood that there would be more than $1500 in damage.

OK, now we now what a total loss is. How are claims paid? The policy says (and I've never seen one that didn't) that the insurance company owes to repair the car, or pay out the value of the car, whichever is less. The value is usually figured out by a third party company based on the condition of the car, mileage, model, etc. Based on the information supplied by the company, this third party company will send back a report that suggests what that car is worth (in our example, $10,000).

So now we know the car is a total loss, and we now the value of the car. Is this it? No. If the insurance company keeps the car, they are buying it from you. Because you'll need to get another car, and that includes paying sales tax, your offer would be $10,000 plus 6% sales tax (and this will vary by county). The total you will receive is $10,600.

What if you want to keep the car? Well, right off the top, you lose the sales tax because the insurance company is no longer buying the car. As the hulk sits, it still has value. To offset their losses, insurance companies run their salvage vehicles through an auction. Because they will not get the chance to recoupe a portion of their loss, they deduct the salvage value of the car. This amount can vary on the loss depending on how the car was damaged. A car that was rear ended will have more value bacause the salvage yards bidding will get quite a bit for the front clip, engine, etc. Usually the doors can be worth some good money, and on we go. A car hit hard in the front will bring less money because the clip is no longer intact, and if hard enough, there may be questions on the engine condition.

For our purposes, lets say the salvage value of your Mustang is $1500. The insurance company takes this from the $10,000. So now you are getting $8500. And if you owe that $7500, you are now down to $1000. From this amount, if you have a deductible, this is now subtracted. If it's $500, you are now down to $500 for a settlement with a car you can't drive and no money to repair it.

If you keep this total loss, the state my now get involved, via the insurance company. I believe the State of Florida requires the insurance company submit the title to be converted to a salvage title. So now, even if the car was repaired to it's preaccident condition, the retail value of that car has now been cut 50% because of the salvage title. So say you 'invested' the $8000 to repair the '03 Mustang, the value of the car will be $5000.

If you have already signed the title over to Geico, you are out of luck. They don't have to sell the car back to you. Which gets us back to the top. They can't force you to sell your car to them. But it will greatly effect the amount of the net settlement. Good luck.

 

thank you all for the good info, I haven't signed anything yet I had to fight with them to even go look at the car to estimate the damage. The car is definately totaled I'm waiting on them to call back about the value of the car and to see what the salvage would be worth for buy back. I think I could make a decent amount back from parts because not really any major components were damaged Engine, Tranny etc...

 

If you can buy it back then I would. You could either fix it up or sell it for parts and such. Your smart for not signing anything not giving in to what they want you to do.

Good luck!

 

Does this car have a lot of aftermarket stuff on it? Insurance companies will be quick to tell you they don't owe for that stuff, but in settling a total loss, this needs to be considered whether they like it or not. I certainly wouldn't take a beating on this stuff in this type of loss. If this is the case, the amount of the settlement will need to be negotiated. Keep in mind that the amount 'invested' is not necessarily the value of the car.

If this is close to a bone stuck car, just let them have it. The cost to repair, not to mention the time involved just isn't worth it. If time is money, the cost of parting out something like this is more pain than profit.

If you are upside down in the car, this is not too much of a problem if your credit is good. The amount still owed can be rolled into the next car, or payment arrangements can be made with the lienholder.

Is there any pictures?

 

The car had aftermarket exhaust not even a week old yet and brand new tires with less than 300 miles on them I was just starting to put money into the car when this happened. The insurance company said that they cannot credit me for the exhaust or new tires because I never included them in my insurance. So I asked if I could pull those items off an replace it with the stock parts and they said yes so that worked out ok. I purchased GAP insurance when I got the loan so the car will be paid off in full I'm just lookin to get a lil extra for parts. I have pics I'll have to post them later.

 

Geico is full of shit. A new exhaust system and tires do add to the value of the car! Follow me on this. These are long term wear items, just like shock/struts. Brakes don't fall into this catagory because if the car has no brakes...

If you were looking at two cars, and one had a new exhaust and tires and the other did not, what car would you buy? Look if you spent $500 in parts (the tires and exhaust system parts), it's rather common to pay 50% of this as added value, or an additional $250. This is the amount that this stuff adds to the car.

There is no rider for new tires or exhaust system items. Parts wear out and they need to be replaced. If you bought wheels, these would most likely be a trade off considering how much new OEM wheels cost.

If you pull the parts, I wouldn't replace the tires Let them drag the carcass, and when they want to know where the tires are, remind them that they aren't worth anything...

 

unless she has ACPE(additional custom parts and equipment)the exhaust will not add value.Custom parts do not add value to a totalled vehicle.
the tires will add value depending on age and how many miles she put on them between the install and accident.It will not be dollar for dollar but it will add.Any recent major work will add value,example-engine replacement and tranny work.

 

So let me get this straight. My 2001 Ford Ranger has 172K on it. It has the original exhaust that is just starting to fall apart. If I replace the exhaust system with an OEM style stainless exhaust system from Midas that I haven't increased the value of my truck? That's bullshit. You don't need a rider to replace an exhaust system. Ask them to price out a Mustang exhaust system from Ford. $430.11 He should see $215 for the new pipes.

If there is a huge difference in price, that would be one thing, but to say that if your aftermarket wheels were stolen that they wouldn't put any wheels on the car is wrong. That opens Geico to one hell of a lawsuit. They have to put something there. They can't make the argument that the OEM wheels/tires wouldn't have been stolen after the fact.

Long term maintenance items include the exhaust, tires, engine, trans, shocks/struts, radiators, etc. They can argue the amount on the exhaust, but they can't ignore it.

By the way, I've been doing insurance claims for 22 years.


By the way, +1 for the cat!