Settlement with low limits - can I keep car? If so, is it salvaged?

Zeppo103

New Member
4
Hello!

I live in California. My car was in a serious accident. The lady who hit me only had $5k in liability for $30k in damages caused, which were distributed among the 3 cars she hit, so I was offered $1,200 out of a $5,800 value of my car (this was her insurance firm's valuation of my vehicle as a total loss). My insurance is not involved because I didn't have the coverage.

The settlement includes signing a waiver in which I agree not to sue the lady who hit me. Since the settlement offer is substantially lower than the car's value - not even a third! - I want to keep the totaled vehicle so I can at least sell it for junk. Can I argue that I should keep the car? I've left a voicemail for the insurance adjuster and written an e-mail, but haven't heard back after three days.

I keep reading that if you take a total loss settlement, the insurance firm keeps your car - then you can buy it back from them if you want. But in my case, with an extremely low offer due to policy limits, why would I accept 20% of the car's loss value AND let them keep it? (then *pay* them to give it back to me when they can't afford my wreck in the first place!). So:

1. Do I have to negotiate or specify with them that I'm keeping the car, or is it understood? Is me keeping the wreck reasonable under the circumstances?

2. Junk sites like cashforcars, etc, ask if it's a salvage title as part of their quote process. I still have the normal title. If the insurance company doesn't keep the car, it's technically not a salvage title, correct? Or do I say it's salvaged because the insurance co. will do that after I sign their waiver (even though I'm not buying it back)?

Thanks so much - I appreciate any insight you could provide!
 
Salvage title will depend on the amount of damage reported as part of the accident claim, it does not have anything to do with how much you spent to repair the vehicle. the insurance company will report the vehicle as totaled or salvage as part of their claim You could reject the repair offer and keep the car, You can find out how much the carrier wants for the wreck and how much of the settlement they would want back. You can sue the At Fault party which will get you nowhere since they have very basic limits and probably have no money. You don't carry collision coverage on your own vehicle so don't get upset at the other driver for having low limits. Do you have Uninsured and Underinsured coverage on your vehicle?
 
Spam coverage exists to remove spam postings from the forum. Tow coverage is commercial and the carriers can be hard to find because of the liability. If you are serious I may be able to help you
 
In California the State mandated limit is only $5,000 for Property Damage which you found out about. However, it also requires Uninsured Motorist Property Damage limits of $3,500. If that's the case then YOUR OWN policy should provide first party physical damage coverage for this event as you have an Under-Insured Motorist Property Damage claim as the total damages for this event are being offered up on a pro-rata basis. Under-Insured Motorist Property Damage falls within YOUR OWN UMPD coverage.
You said you didn't have the coverage. Did you waive your Uninsured Motorist Coverage by signature? If not, I think you need to turn this claim into your own carrier if you haven't already settled the claim. Even if you did settle the claim I think you weren't made whole and should still turn the claim in for consideration. Why? Because you are still owed approx $4,600 from the loss and your acceptance of the adverse carriers $1,200 did not make you whole. Yes, the carrier may claim they lost their subrogation rights to recover against the tort-feasor (adverse driver) but I think its safe to say your activity did not prejudice their recovery. If they squawk you can always give them the $1,200 in exchange for your $3,500 UMPD policy limits or ask for the difference of $2,300.
 
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