The other day my car was rear ended. I brought to the body shop to get it repaired and had the hitters insurance came to get a price to repair it. He said it was totaled and to fix it would cost around 5,900 and they said they would give 5,700 don't got exact numbers on me at this moment. They said to total it they would pay me 4,600 and the extra 1,100 would be needed to auction it.(again don't have exact figures yet) Which is complete bull. I have a few questions. Could I tell them I am having it repaired and get a check and not repair it? Is the value of the car they are offering negotiable? Is their any way around to not let them take the extra off to auction it? The car is a 2002 Toyota corolla LE.
You are going to have 2 options. They are not going to offer to fix your car. Legally, the person who hit you owes the lesser of either the repair cost or the replacement cost (ACV). Once the cost to repair reaches about 70% of the ACV, they will total it. It makes more economic sense.
They will run a market valuation to determine the ACV. (They will have tons of comparable vehicles to get a value since it's a corolla) An independent company will find comparable make/year/model vehicles within your area to get a value. If your car has lower mileage or better options than the comparables, the ACV is going to be higher.
Option 1:
You keep the car. They take the ACV from the market report and add in the tax rate for your area (you will have to pay tax on the replacement vehicle). They also add in lost licensing fees. If you paid a year of fees, and your car gets totaled halfway through the year, they owe you the unused 6 months of paid fees (you are going to pay them again when you register your new car)
Your car has value as salvage, and if you keep it, they will deduct this value. They will get salvage quotes to see what salvaged 2002 Toyota Corolla's sell for with rear impact damage.
Option 2: Same as above but they don't deduct the salvage value. You basically sell them your car, and they auction it off for salvage.
Laws are slightly different state to state. Most states require the insurance company to notify the DMV that an owner has retained a salvaged vehicle. If you keep the car, DMV may find out and they WILL CANCEL your registration. They will require you to re-title the vehicle as a restored salvage and pass a safety inspection. Vehicles that are restored salvage are worth HALF what the car would be worth with an un-branded title.
The only situation where I would keep your car is if they give you a low salvage bid and you can sell it yourself for more than the salvage deduction. DO NOT RESTORE A SALVAGED CAR. It will be a nightmare. It will be worth very little and no one will want to buy it.
There are tons of Toyota Corolla's out there. They are good cars. Just do your research and replace it with a one-owner car.
Only keep it if you know you can sell the salvage or part it out for more than the salvage quote the insurance company gives you.
Move your car out of the shop immediately or they will charge you storage for it. The insurance company will move it themselves if you aren't keeping it. If you are, you need to move it ASAP.
Let me know if you need any suggetions on getting out of the storage fees.
