- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Totalled car insurance settlement - re: taxes
Posted on 10/21/16 at 8:48 pm
Posted on 10/21/16 at 8:48 pm
This is the first time I'm dealing with a car being totalled. The other driver at fault had no insurance, but we have good uninsured motorist coverage. I understand that they are supposed to offer fair market value of the car reflecting its age/mileage/condition at the time of the accident. If I'm turning around and buying a new car, I understand that in some states they are required to pay the equivalent of the tax amount on the value of the totalled car also. Apparently Louisiana has no law requiring this but also no law relieving the insurance carrier of that responsibility. Has anyone here dealt with this situation and been able to recoup the car value AND tax amount?
This post was edited on 10/21/16 at 9:17 pm
3
Posted on 10/21/16 at 9:09 pm to TigrrrDad
I've seen the TTL paid for the totaled car. How does the insurance company know if you're going to buy a $10,000 car or a $20,000 car with your settlement proceeds? They should pay the TTL on the value of the totaled car, not the new car.
Posted on 10/21/16 at 9:15 pm to boosiebadazz
Yes, that's what I would hope for. In other words, if my totalled car was previously worth $20k and I was trading it in on a new model worth $30K, I wouldn't have to pay taxes on the $20K trade in. I'm hoping they pay reasonable fair market value plus the tax on that amount. Though I'm assuming it will take some haggling with the insurance company.
This post was edited on 10/21/16 at 9:18 pm
Posted on 10/21/16 at 9:18 pm to TigrrrDad
They should send you a report of how they came up with the total valuation and it should be spelled out in there. Who is the insurance company?
Posted on 10/21/16 at 9:21 pm to TigrrrDad
They're pretty fair and your total loss adjuster should send you the report with the values of cars comparable to yours in the area.
Posted on 10/21/16 at 9:48 pm to TigrrrDad
My daughter's car was just totaled and it was done by the other person's insurance which is State Farm. They are sending me a check for the value of the car plus taxes/registration. Fairly easy to deal with. It just took a little while to get things going. Hope everyone is okay and good luck.
Posted on 10/22/16 at 11:03 am to TigrrrDad
quote:
In other words, if my totalled car was previously worth $20k and I was trading it in on a new model worth $30K, I wouldn't have to pay taxes on the $20K trade in.
True, but that's not the situation at hand. You don't have a vehicle to trade in. You should be paid fair market value for your old vehicle plus applicable taxes. Whatever it will cost you to make you whole again as if the accident never happened.
Posted on 10/22/16 at 11:37 am to MikeBRLA
Yes, that's what I mean in effect. If they pay me fair market value PLUS the taxes on that value, it puts me in the same relative situation as if I would have had an intacy car to trade in.
I've read that some states have a tax stipulation. If you get paid by the insurance company for your totalled car the use all of that money towards a replacement vehicle, there is a waiver that e empts you from paying taxes on that portion, just the difference between that and the new car (like with a trade).
Thanls to all of you for the informative responses. It is much appreciated.
I've read that some states have a tax stipulation. If you get paid by the insurance company for your totalled car the use all of that money towards a replacement vehicle, there is a waiver that e empts you from paying taxes on that portion, just the difference between that and the new car (like with a trade).
Thanls to all of you for the informative responses. It is much appreciated.
Posted on 10/22/16 at 1:51 pm to TigrrrDad
Last truck got totaled by flood. State Farm gave fair market value (NADA) for my truck pre flood, PLUS TTL cost.
Posted on 10/22/16 at 2:15 pm to Ice Cream Sammich
Did they base it off of NADA trade value or NADA retail?
Posted on 10/23/16 at 9:10 am to TigrrrDad
You need to read your policy. Usually third party will pay TTL. First party insurer governed by policy.
Posted on 10/23/16 at 2:32 pm to TigrrrDad
It was a hair under nada retail. The adjuster was very friendly and marked all categories "new". It essentially was with only 8k miles, but they treated me right. No complaints at all.
Work car had geico. That's a whole nother story.
Work car had geico. That's a whole nother story.
Posted on 10/27/16 at 6:10 pm to Ice Cream Sammich
Wow, State Farm is trying to screw me. Saw the estimate, and it's at $24,600. NADA trade value is $29,500 and highest retail is $31,500 - putting it at over 75% either way. State Farm is saying the value is $38K, thus 64% damage. I paid $40K for the car a year and a half ago, and it has 16,000 miles. Also, the body shop is saying they suspect frame damage but State Farm hasn't given pemission for them to tear the car down to further assess the damage.
This post was edited on 10/27/16 at 6:33 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News