Can an auto insurance company total out your auto even if you want to repair it.?

Most of us use the term "total" in casual conversation, as in, "Man, did you hear Dinkins totaled his car driving back from the party last Saturday?" When you total something, you wreck it completely. That's not too far from the insurance industry's definition of a totaled car: When you total your car -- or when someone else does -- you cause so much damage to the car that it would cost more to fix it than what it's actually worth.

It sounds as though your car would have to suffer some major damage in order for an insurance company to total it, but it's actually a function of the car's worth. Minor damage to a 15-year-old Buick might result in totaling the car, while major damage to a brand-new Saab might not. Auto insurance claims adjusters usually determine a car's actual cash value by using their company's proprietary database of prices.

Some companies total vehicles at 51% of its actual worth; some total at 80%. The insurance company will pay you the car's actual cash value, minus any deductible on your coverage. Then the car goes to a salvage yard, where it's auctioned off to the highest bidder and usually chopped up for parts. The insurance company keeps whatever money it got for the car in salvage.

Ron @ InsureMe http://www.insureme.com/landing.aspx?Refby=614506&Type=auto

someones fairy

yes they can and some of them will send you a check of how much they say it was worth.

wizjp

Totally correct as stated. Sometimes they will give you an option to buy the car back from them at a price if you insist on going ahead; but you have no say in the "totalling".

bostonianinmo

They can use any value that they can reasonably substantiate as accuratly reflecting the retail value in your area. This should be fairly close to the NADA or KBB value. Keep in mind that they are fully within their rights to adjust for any unrepaired pre-existing damage.

Many states do require that a vehicle title be salvaged if the damage exceeds a certain percentage of fair market value. Even if it isn't required by law, it doesn't make good business sense to repair a vehicle once the repair cost exceeds 75% - 80% of the fair market value.

Your insurance company may allow you to buy the vehicle back after the claim is settled but keep in mind that you'll be getting a salvage title.

vinniebagodonuts

Yes, it is there call.

You need to read your policy carefully to know for certain what their information source is in regards to determining the value.

Maybe they use Kelley Blue Book or Edmunds or some other method not available to the general public.

The reason they do this is that heavily damaged cars can often take several trips to a repair shop or a dealer because something is overlooked. The repair bills start to skyrocket as the repair shops have to have to dissasemble, do the repairs and re-assemble. The more times they have to do this, the more hours they charge for repairs.

It is certainly not unheard of for a dealer to charge $100 PER HOUR FOR LABOR.

As you can see it often becomes much cheaper to simply replace....

Most cars are designed to be built on an assembly line using a very structured process. A process that dealers and repair shops can not duplicate. Especially when you talk about foreign cars because most of those companies assembly lines are not manned by people. They use robots. Robots can execute those structured processes far more efficiently and precisely than any person can.

cmpbush

This is true but you can buy back the salvage and get a salvage title, rebuild the vehicle as you like and then get a reconstructed title once it is road ready again and you have it reinsured and reregistered. This is all online in Texas statutes and at Texas DOT. Most states have this in their laws.

FL LMT

What they *should* use and what they *will* use are two different things...particularly if you're the person who's about to lose your car to the totalling. The same law as Texas applies in Florida. You may be out of luck on this one. Take the check, and try to find a car that runs.

Borat2Â®

yes they can - the insurance co decides HOW they want to repair it, 'cause they pay for it

Chris

They are totally right with everything they are doing. It's not just Texas specific, but that is insurance company standard. They are not responsible for fixing the car if fixing it is more costly than the actual cash value. And ACV is not NADA, or Kelly Blue Book. It's what the exact vehicle would cost in the market. They are doing everything correctly.

r.hardison

I'm not sure about how they should value the car but what you can do is purchase the car back and repair it, an old friend of mine did that.

hepette

insurance companies can do whatever the heck they want while charging you exorbitant fees at the same time!!!!!!! contact the insurance regulatory agency for your state.......good luck!

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