Insurance Doubt - Can my car be taken away?

[whatdoido?]

What is the name of your state?Illinois

I had asked a question yesterday about my rearending someone and what chances I have of contesting the ticket I got, as the driver in front of me jammed his brakes suddenly. Thanks jpritchett81 for your reply.

Now I have a follow-up question on that. A guy came from my insurance agency to estimate the cost of repairs (an adjustor?, i dont remember) and looked at the damages. Then he told me something that I did not know till now. He said that if the repairs cost more than the value of the car, the insurace company would pay me some money and take my car away. What? what is this now? will I have to forego my car if the repairs cost more? This might be a very basic question, but since I have never been in an accident before, I know nothing of these basics. Can someone please enlighten me on this as I can't have my car taken away as I wont be able to go to work without it. Please help....

Thanks.

 

[testedmonkey]

Total Loss

If the cost of repairs would be more than the cash value of the car, most insurance carriers retain the right to pay you the cash value of the car. They take the car so they can part it out or sell it for scrap to recoup some of their money. It's a standard procedure.

There's no point to them spending more on repairs than what the car is worth. If they "total out" the car, you will be compensated, so it's not like they'll just TAKE the car without paying you.

You might check to see if your policy covers a rental car while yours is disabled or in the shop.

 

[whatdoido?]

But what if I want to keep the car? If they decide that a minor front-bumper dent may cause them to "total" my car, that means they will give me peanuts in return. And I can't buy a new car with that money. So, if I want to keep this car, does that effectively mean that I will have to take care of the repairs myself? The entire amount? Will the insurance company not give me at least part of the costs in such a situation?

 

[testedmonkey]

Communication

Do you know yet what they're going to offer you for it? If it's that important that you keep the car, be honest with the claims adjuster and ask him what your options are. Each carrier has its own set of rules on how to handle "total losses." If you car hasn't been declared a total loss yet, you may be getting excited for nothing. The adjuster may have just been warning you of a possible outcome.

Out of curiosity, what kind of car is it?

 

[whatdoido?]

No, I do not know what they are going offer me. I know I might be getting excited unnecessarily, but the idea of me having to get a new car in my present financial situation has shaken me up a bit. My car is a Buick Regal, 1996. I checked the Kelly Blue Book and I know I am not going to get more than 1500$, provided the condition of the car is Fair or Good. But I can't mark the condition as either of those until I get my fender repaired. I will post any further doubts I may have after I hear from my adjustor.

Thanks TestedMonkey for you replies.

 

[whatdoido?]

Ok, heres something new. The lady I spoke to at my insurance claims office says that she "thinks" there is a law that says that if my car is more than 7 years old, they wont take it away from me. (She adds that she is not sure about the number of years, i.e. if it is 7 years or more). My car is a 1996 make. That does make it eligible for the more-than-7-rule, if it exists. But what I want to find out is : Is it true? Is there any such rule in vogue? If so, does the car need to be a 7-year-old model, or older still? Can anyone give me some pointers on this, please? Thanks a million.

 

[Raisinette]

I don't know anything about a 7-year rule. But -- if the car is deemed a 'total loss,' the insurance company will offer you the market value for the car before it was wrecked. As noted, they then sell the car for salvage. IF you want to keep the car, they will deduct the salvage value (let's say $200) from the settlement of your claim.

Eg: $1500 value of car LESS $500 deductible LESS $200 salvage = $800 to you; you keep car with title designated as 'total loss.'

You then have $800 to fix the car. If you think it is repairable and safely driveable with that money, go for it. (It's commonly done and can be a very smart thing to do IF you know what you are dealing with in terms of values and repair costs.)

 

[testedmonkey]

2 cents

Cars with salvalged titles can be harder to insure, just as a heads-up.