Car Accident- possibly considered totalled

[Yitzman]

I was recently in a car accident, with the other party at fault. Only the front of my car was damaged, with the cost to replace $2,000+. My car is old, with approx. 130,000K miles on it but it runs good, even after the accident. I also put a lot of money into the car over the years. However, I was told the insurance adjuster will render my car totaled since the cost to fix ($2,000+) is more than the value of my car ($1500-$2000).

I went to a few shops and one shop gave me a $3,800 estimate to fix the car which is the highest I received and beyond the value of my car. It's actually from the same shop the other partys' insurance company recommends since it has their insurance adjuster on premises. My concern is the adjuster will look into the system, see the $3,800 estimate I was given, render my car totaled and im left with basically pennies.

What can I do, to prevent getting a, "totaled car" verdict? Would lower quotes to fix the car help and how would I do this? This is in NY.

First time accident, so don't know the ropes. Thanks

 

[adjusterjack]

If you already know that the cost to fix is $2000 your car is a total loss anyway and it doesn't matter if there is a $3800 estimate out there.

There are three options open to you:

1 - Take the total loss settlement and surrender your car and title to the insurance company.

2 - Keep the car and collect the settlement after the insurance company deducts the salvage value (often about 15%). You will then have a salvage title which means you can't driver the car until it's repaired and inspected by the DMV and a rebuilt title issued.

3 - Take the car to a body shop, have the repairs done at the lowest possible price, pay for the repairs out of your own pocket, submit the paid receipt to the insurance company for reimbursement.

Now for the figures. If the ACV (Actual Cash Value) is $2000 and the salvage value is 15% ($300) you would have to get the repairs done for less than $1700 for number 3 to work but you still might end up with a rebuilt title before the insurance company will pay you.

I see your kind of question hundreds of time with old cars and numbers 2 and 3 rarely work out for the claimant unless you are capable of doing your own repair work.

 

[Yitzman]

Thanks for your response. I also got a verbal $1500 estimate. Since this is less than $1,700 how would I proceed with option #3? What guarantee do I have that I will be reimbursed for the repairs? I plan on meeting with an adjuster this week.

 

[VolAgent]

Thanks for your response. I also got a verbal $1500 estimate. Since this is less than $1,700 how would I proceed with option #3? What guarantee do I have that I will be reimbursed for the repairs? I plan on meeting with an adjuster this week.

1,700 is 85% of 2000, he was subtracting out of the 2,000 cash value to come up with that. If you have been offered 1,500, then you will have 1,275 with which to get repairs done. Seems very unlikely you will be able to get the vehicle to a safe and driveable condition if estimates exceed 3,800.

And yes, the insurance company is going to settle the claim. Exactly how it happens and when does depend in part on you. As Adjusterjack mentioned, if you do decide to keep the car and have the repairs done yourself, they may require you get a rebuilt title before dispersing any funds to you.

 

[adjusterjack]

Thanks for your response. I also got a verbal $1500 estimate. Since this is less than $1,700 how would I proceed with option #3?

I told you. Get the car repaired, pay the bill, submit the bill for reimbursement.

What guarantee do I have that I will be reimbursed for the repairs?

No guarantee at all. Number 3 is a crap shoot. Recall that I said it rarely works.

I plan on meeting with an adjuster this week.

Good.

Come back to this thread and post the results of that meeting.

 

[djs]

I also got a verbal $1500 estimate.

Get it in writing or it didn't happen. Seriously, make sure they are repairing the damage correctly. One shop at $3800 and another at $1500 tells me that there are some serious corners being cut or they are looking to get it torn down and then drop the rest of the bill on you.

 

[ginniferhadley]

Get it in writing or it didn't happen. Seriously, make sure they are repairing the damage correctly. One shop at $3800 and another at $1500 tells me that there are some serious corners being cut or they are looking to get it torn down and then drop the rest of the bill on you.

I absolutely agree.