Car deemed a total loss?

so i was in an accident today..

to make a long storty short,,,,

i was at a red light,,, and i was rear ended.

the crazy lady said,,, she hit me,,,because she thought i was going to run the light,,

so when i stoped she ran into me,,,,

THIS IS MY QUESTION,,,,,,

if my car is deemed a total loss,, will i be able to keep the car,,

i ask because,,,, my car is very very very driveable,,, i drove all the way home and to my lawyers office,

see,,,,,, i owe 6 5,500 dollars on the car,,

if the car is deemed a total loss i will only get about 6,000 dollars,, and after i pay off the car,, i will have no money and no car,,

thats not fair,,,,

so if i demand to keep the car,,, can i,,,

MSAD

Sure you can keep the car......but you get about 25% less money.

Here's why:

When the insurance company total losses a car -- they buy the wrecked car from you. That means, they give you the fair market value of the car (money) in exchange for you giving them the car. Just like any other car sale.

The insurance company then takes the wrecked car and sells it at a salvage auction. They usually get about 25-30% of the car's value.

When you want to keep the car -- the insurance company determines the value of the car and subtracts what they think they could have gotten at the salvage auction for the car. You get the car and the difference.

It's perfectly fair.

Here's a slightly different situation: you purchase a tv. Get it home and out of the box. You find the tv is broken - has a big scratch on the screen - but other wise works. So you return it to the store. The store gives you a full refund and takes back the scratched tv. Do you get to keep the money and the scratched tv? No. You get one or the other.

In the case of a total loss...you don't get the full value of the car and the car. All a total loss is .....is selling the car to the insurance company. Therefore, you have to give it to them if you are paid full value for the car.

sydkan

you have the facts as to what happens if it's a total loss but one key part to this is you have a lienholder. The insurance company owes the lienholder not you. I've yet to see a lienholder let you keep a vehilce that is totaled. Also if you did your vehilce would be worth less than 1/2 of what it is valued at and you'll never be able to get rid of it as it will always be a total loss.

Honestly if it's a total loss you're better off.

Thomas E

Duh-h. You go borrow 6,500 dollars and buy a good car. then you have a car and a loan just like you did before?? whats not fair about that?
BTW - you can keep the car. no one should take it away from you. you can negotiate a settlement with the ins co to pay for the damage and you are assessed for the value of the "salvage" and you keep the car. For instance if it is deemd a "total loss" at a value of $6000 they might (?) asses you $1000 for the salvage and pay you $5000 and you keep the car as is. Then you can repair it as needed (on the cheap) - or not. Ins cos process thousands of these "small claims". they want to handle them fast - get your releases signed and cut you a check and scrap the car. When they "scrap" the car what really happens is it will be sold at auction and most likely a low budget body shop will buy it - bang it out and paint it and it will be back on the street in 3 weeks.

Ironball

If you're driving it, the car is not totaled. Get estimates from a body shop and turn it in to HER insurance.

Enter Your Message or Comment

User Name:
User Email:
Post a comment: