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Message
OT Car Insurance Claim Question
Posted on 6/20/17 at 3:11 pm
Posted on 6/20/17 at 3:11 pm
My daughter, (no pics), ran into the back of a pick up last week, (no air bag deployed with no injuries) and the adjuster calls me today to say the car is totaled. It's a 2011 Hyundai Elantra with 63,000 miles. Estimate to repair is $7200 but they say it is totaled and value is $9,490. Minus my $1,000 deductible they will pay me $8,490.00. they say the salvage value is $7,050.00, so if I want to buy it from them at salvage, I would get about $1,400 plus the wrecked car.
If the cost to repair is $7200.00, and the salvage cost is $7,050.00 then it seems the salvage cost is way too high since the cost of the repaired vehicle would be over $14,250.00. The adjuster is supposed to call me back but where do they come up with these salvage values?
Any recommendations from insurance pros on how you would handle?
If the cost to repair is $7200.00, and the salvage cost is $7,050.00 then it seems the salvage cost is way too high since the cost of the repaired vehicle would be over $14,250.00. The adjuster is supposed to call me back but where do they come up with these salvage values?
Any recommendations from insurance pros on how you would handle?
Posted on 6/20/17 at 3:12 pm to MadDoggyStyle
quote:
My daughter the back of a pick up last week they will pay me $8,490.00
i say go for it. she probably will be worth half that in a couple years
Posted on 6/20/17 at 3:13 pm to MadDoggyStyle
I know exactly what you should do. But without pics of said daughter, I can't help you out.
Posted on 6/20/17 at 3:18 pm to MadDoggyStyle
quote:
so if I want to buy it from them at salvage
You would essentially never be able to sell this car.
Posted on 6/20/17 at 3:19 pm to MadDoggyStyle
Are they saying the salvage value of the wrecked vehicle is $7050?
Posted on 6/20/17 at 3:21 pm to The Mick
quote:
Are they saying the salvage value of the wrecked vehicle is $7050?
I am trying to get confirmation from the adjuster, but I believe that is what they said. Seems very high to me, but I have never dealt with a total loss before.
Posted on 6/20/17 at 3:22 pm to MadDoggyStyle
They would put a salvage title on it so you would be screwed.
However that salvage value cannot be correct. You may want to check on that again. No way that car has a salvage value of near 70% of it book value with 7500 in damage.
But the salvage title blows up the whole deal. Especially if there is a lien.
Especially if you plan to sale the vehicle some day.
However that salvage value cannot be correct. You may want to check on that again. No way that car has a salvage value of near 70% of it book value with 7500 in damage.
But the salvage title blows up the whole deal. Especially if there is a lien.
Especially if you plan to sale the vehicle some day.
Posted on 6/20/17 at 3:23 pm to MadDoggyStyle
save yourself the stress and time and take the $8,490.
Posted on 6/20/17 at 3:24 pm to MadDoggyStyle
quote:
where do they come up with these salvage values?
There's a formula to it based on what the car's normal blue book value would've been if it was in good condition.
quote:
Any recommendations from insurance pros on how you would handle?
Take the check for the total loss and use that money to go find your daughter another car. The cost to repair could end up being a lot higher than the original $7200 estimate once the shop starts taking the car apart, and when you try to sell the vehicle in the future it won't be worth as much and could be more difficult to sell due to the salvage title.
Posted on 6/20/17 at 3:24 pm to MadDoggyStyle
I think you have the numbers backwards. Salvage value may be $1400 so after salvage and deductible you get $7050 and keep the wrecked car. You're "buying back" the car as it sits for the salvage amount of $1400.
There's no way the salvage value of a wrecked Hyundai is worth $7000.
$9490 vehicle value
-1000 deductible
$8490 paid to you and they take the car
$8490 payment to you
-1400 salvage value of wrecked car (aka buying it back)
$7090 paid to you and you keep the wrecked car
ETA Once it is repaired it'll still you'll get a reconstructed title. It'll be worth a lot less should it be totaled again. Personally I'd take the $8490 and not deal with the salvage.
There's no way the salvage value of a wrecked Hyundai is worth $7000.
$9490 vehicle value
-1000 deductible
$8490 paid to you and they take the car
$8490 payment to you
-1400 salvage value of wrecked car (aka buying it back)
$7090 paid to you and you keep the wrecked car
ETA Once it is repaired it'll still you'll get a reconstructed title. It'll be worth a lot less should it be totaled again. Personally I'd take the $8490 and not deal with the salvage.
This post was edited on 6/20/17 at 3:27 pm
Posted on 6/20/17 at 3:25 pm to MadDoggyStyle
Sounds like you have it backwards. Seems like the salvage value would be $1,400 and they would pay you $7050. I've never seen a salvage value that high.
ETA I got beat to the punch and didn't nearly explain it as well.
ETA I got beat to the punch and didn't nearly explain it as well.
This post was edited on 6/20/17 at 3:30 pm
Posted on 6/20/17 at 3:28 pm to MadDoggyStyle
quote:
where do they come up with these salvage values?
COPart makes a bid
Posted on 6/20/17 at 3:29 pm to CaptainsWafer
Ok, that makes much more sense. I will confirm the salvage numbers. From what I have seen in the past, $8,500.00 won't get much of a vehicle these days, so if your numbers are right I could still get the car fixed and might be better off if she keeps the car another 3-5 years.
Posted on 6/20/17 at 3:32 pm to MadDoggyStyle
Like another poster said, the estimate is $7200. It could be another $2000+ to repair it once the car is torn down.
It's exactly that. An estimated amount of what the repairs may cost. Unless a shop will guarantee they'll fix everything wrong with the car for $7200, you may be biting off more than you can chew. And no shop will do that unless you own it, or are related to the owner.
The only way I'd keep a wrecked car was if someone else was going to pay me what would be deducted for salvage. That way I'm still being made whole, and Uncle Biff gets the wrecked car for cheap and he can do with it what he wants.
I'd also double check on the sales tax if you keep it. Since the insurance company isn't buying it from you, they may not include the sales tax in what's paid if you keep it.
It's exactly that. An estimated amount of what the repairs may cost. Unless a shop will guarantee they'll fix everything wrong with the car for $7200, you may be biting off more than you can chew. And no shop will do that unless you own it, or are related to the owner.
The only way I'd keep a wrecked car was if someone else was going to pay me what would be deducted for salvage. That way I'm still being made whole, and Uncle Biff gets the wrecked car for cheap and he can do with it what he wants.
I'd also double check on the sales tax if you keep it. Since the insurance company isn't buying it from you, they may not include the sales tax in what's paid if you keep it.
This post was edited on 6/20/17 at 3:36 pm
Posted on 6/20/17 at 3:32 pm to Belaire Buck
No, I think OP had it right. Salvage value being around 75% of market value isn't really that far out of line. Although he might be able to negotiate the salvage value down some
Posted on 6/20/17 at 3:33 pm to CaptainsWafer
quote:
CaptainsWafer
this guy knows stuff
Posted on 6/20/17 at 3:34 pm to MadDoggyStyle
Take the $8,490. Salvaging will not be worth the hassle
Posted on 6/20/17 at 3:35 pm to MadDoggyStyle
quote:
$8,500.00 won't get much of a vehicle these days
Add your $1000 deductible amount to that and you should be able to buy a 2011 Hyundai Elantra with 63,000 miles
Posted on 6/20/17 at 3:38 pm to MadDoggyStyle
quote:
From what I have seen in the past, $8,500.00 won't get much of a vehicle these days, so if your numbers are right I could still get the car fixed and might be better off if she keeps the car another 3-5 years.
Think of it this way. You get $1400 from insurance, but give up $7000 payment. Then you spend $7200 at a minimum to get the repairs done to the Hyundai. So you end up being out of pocket at least $5800, and thats not taking into account the high probability that the repairs end up costing more than originally estimated when its all said and done. So you're out of pocket approx $6,000 and have a vehicle that'll be tougher to sell in 3-5 years and it won't be worth as much due to having a salvage title.
On the other hand, you could take the $8490 insurance settlement, and come out of pocket another $6000 to buy a car in the $14-15k range. You'll be out of pocket the same amount of money and not have to deal with the headache of major repairs and a vehicle with a salvage title.
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