Do Not Want Car Classified As Total Loss

[terryBzb]

I was recently in accident, and hit by a driver using a relative's car. The driver's insurer said my car would be declared a total loss, but I want to keep it as I cannot afford a new or used or car (my car is a 2012 and I have only liability). I do not want my car classified as "totaled". It appears nightmarish and costly to deal with what comes with having a salvage title and getting the vehicle legally on the road. I rather take the insured to court unless their insurer will offer a partial settlement to cover some repair cost--however, this must be contingent on NOT classifying my car as a "total loss". My car is actually very drivable showing no sign of mechanical problems despite the damages. I do intend to get an adequate assessment of the safety of the vehicle.

My question is if a settlement is not reached with the at-fault party's insurer, will the company still be able to report my car as "totaled" to the DMV agency? If they go with a partial payment option, will that remove the "total loss" equation if the repairs do not exceed 60% of the car's value? I am new to this stuff. Any advice is greatly apprenticed.

 

[adjusterjack]

My advice to you is to take the money and turn the car over to the insurance company. You are not going to get what you want. I can't count the number of times I've explained this so here we go again.

The statement:

I cannot afford a new or used car

Is ridiculous. Whatever you get paid for your car ($5K, $6K, $7K whatever) can buy a decent quality used car in that price range, for cash.

I rather take the insured to court unless their insurer will offer a partial settlement to cover some repair cost--however, this must be contingent on NOT classifying my car as a "total loss".

Not gonna happen.

The other driver owes you the lesser of the ACV (actual cash value) or the cost to repair. That's the law. If the cost of repair exceeds the statutory total loss threshold then the car is a total loss. That's the law.

That doesn't change whether you go to court or just deal with the insurance company. The result is the same.

If you want to keep a total loss car the insurance company will allow you to do so but will deduct the salvage value (5% to 15% depending on its contract with a salvage yard).

In Oklahoma the total loss threshold is not a percentage.

36-1250.8 M. As used in this section, "total loss" means that the vehicle repair costs plus the salvage value of the vehicle meets or exceeds the actual cash value of the motor vehicle prior to the loss, as provided in used automobile dealer guidebooks.

Oklahoma Statutes §36-1250.8 (2021) - Motor vehicle total loss or damage claim. :: 2021 Oklahoma Statutes :: US Codes and Statutes :: US Law :: Justia

Example: Repair cost $5000 + salvage value $500 = $5500. Car value $4500. Claimant gets $4500, insurance company keeps car.

If claimant keeps car, the salvage value is deducted from the $4500 and the claimant gets $4000, a salvage title, and then has to figure out how to do $5000 worth of repairs for $4000. I'm sure that's possible with used parts, cheap paint, and a hole-in-the-wall body shop.

In court, the judge will have no choice but to apply the same statutory standards that the insurance company is applying to the claim.

By the way, on a 10 year old car, a salvage/rebuilt title is meaningless. Once you have the car properly repaired you are likely to keep it a few (or many) more years while it continues to depreciate. By the time it's worth a couple of thousand, nobody is going to care what the title says.

Again, my advice, take the money and turn the car over to the insurance company.

 

[DaKine]

You can't always get what you want. But if you try sometimes, well you might find, you get what you need.

 

[LostDollar]

The statement:



Is ridiculous. Whatever you get paid for your car ($5K, $6K, $7K whatever) can buy a decent quality used car in that price range, for cash.

Not sure that is necessarily true in today's used car market. Aren't current used car prices somewhat inflated over book values?

And, buying cars in the price range you mentioned, you are buying someone else's undone maintenance problems which may not be an issue with your own car if you have maintained it well.

 

[adjusterjack]

Not sure that is necessarily true in today's used car market. Aren't current used car prices somewhat inflated over book values?

Maybe somewhat, in that price range. A search in Phoenix for vehicles under 75,000 miles, priced $5000 to $7000, from 2010 to the present, yielded 30 options.

Besides, an ACV settlement may take today's prices into consideration as the industry's valuation company (CCC) draws from current ads.

And, buying cars in the price range you mentioned, you are buying someone else's undone maintenance problems

Possibly. But a thorough inspection by one's trusted mechanic before buying could minimize the chance of getting a problem vehicles.

 

[scagnt83]

You are assuming the OP has $7k cash to buy a new used car. Or has the credit score/income to qualify for a loan.

And if he has maintained his car well, he is trading a known for an unkown.

Its not hard at all to fix most repairs for less than the estimated value... especially if the OP gets an estimate from a car dealership and not an indy body shop.

 

[scagnt83]

I was recently in accident, and hit by a driver using a relative's car. The driver's insurer said my car would be declared a total loss, but I want to keep it as I cannot afford a new or used or car (my car is a 2012 and I have only liability). I do not want my car classified as "totaled". It appears nightmarish and costly to deal with what comes with having a salvage title and getting the vehicle legally on the road. I rather take the insured to court unless their insurer will offer a partial settlement to cover some repair cost--however, this must be contingent on NOT classifying my car as a "total loss". My car is actually very drivable showing no sign of mechanical problems despite the damages. I do intend to get an adequate assessment of the safety of the vehicle.

My question is if a settlement is not reached with the at-fault party's insurer, will the company still be able to report my car as "totaled" to the DMV agency? If they go with a partial payment option, will that remove the "total loss" equation if the repairs do not exceed 60% of the car's value? I am new to this stuff. Any advice is greatly apprenticed.

My advice is with the estimate, and it comes from my personal experience.

I had 3 estimates, 2 indy shops and 1 dealership (toyota/volvo).

The dealership was $2900. Indy shop was $1400 and $1800.

SF offered $1450... lowball.

If you look at the breakdown of the dealership quote, it listed multiple procedures in the repainting & refinishing that the indy shops did not.

Many car bumpers and fenders have a flexible top coat that actually allows the surface to bend and not break. The "seal" is broken after being bent in an accident. To reapply they have to sand off the old coating and apply it to the whole bumper... time intensive.

Long story short, the indy shops did not include this service. They are often dealing with individuals and live/die on providing a low priced quote. Dealerships do not, they mainly deal with insurance claims... they also are required by the manufacturer to restore body work to the "original condition".

----

All that to say, get a quote from at least 2 dealership body shops. When they give you the initial lowball offer.... decline it (assuming its a good bit lower than the dealer quote). Ask for the claim to be reconsidered, tell them your settlement expectation, and provide a copy of the highest estimate you get as evidence of your demand.

Also, make sure the body shop lists the insurer on the estimate form. Insurers claim to have special arrangements and get special pricing with various dealership body shops. So if the estimate is not specific to the insurer, they will not accept it.... I found that out the hard way and had to go back for them to change it. (for the record, State Farm did not get special pricing with this vendor even though they claimed they did. The assessor just typed their name and changed the date, he also laughed when I told him the comment and said that is hardly ever true.)

Now if you want cash in hand, you might not get the actual amount of the highest estimate. But it should get you a good bit more than the initial offer. However, you can go to that highest estimate body shop and the insurer will be forced to pay that amount... but directly to the body shop.

 

[adjusterjack]

You are assuming the OP has $7k cash to buy a new used car.

When the insurance company pays him $X for his used car, he will have $X to buy another used car.

My advice is with the estimate, and it comes from my personal experience. I had 3 estimates, 2 indy shops and 1 dealership (toyota/volvo). The dealership was $2900. Indy shop was $1400 and $1800. SF offered $1450... lowball.

Apples to elephants. OP is dealing with a potential total loss, not repairs.

I do agree that he should, theoretically, get his own repair estimates. Though that might not be possible if the wreck is at a storage lot and body shops don't want to send their people out to do estimates.

Besides, if he wants to challenge an insurance company's total loss repair estimate he will have to submit estimates that are LOWER than the insurance company's estimate. Get it?

 

[Al3x Lee]

AdjusterJack spitting facts per usual

 

[fed up]

Keeping a salvage title car can also depend on the state. Some allow for keeping the vehicle registered for a limited length of time, some do not allow for the sale of the vehicle at a later date.
I purchased a vehicle from a small private dealer who explained that the vehicle had been hit and repaired. It had a new state inspection sticker and I was given a 'clear' title. When I went to sell it a few years later it showed as 'salvaged'. The dealer turned in the repair paperwork after I bought it. Lucky for me I still had a copy of the title I had been given. Carmax bought it, gave me cash, and they salvaged it.