Trying to Prevent Car Total by Insurance Company

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BogleLearner
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Trying to Prevent Car Total by Insurance Company

Post by BogleLearner »

Thank you all for your input in advance - I am trying to keep a low-mileage car
that was in an accident several days ago - side-swiped by a large pick-up truck.
Information on the car:

Make/Model - Subaru Outback 2.5 i, Year 2009
Color - White
Mileage - 65,976
Owner - I have been the only owner - purchased new
Condition - Very Good (notch down from exceptional, definitely not average)
Maintenance - Same good mechanic over the years - by the book
Damage - Driver side 2 doors main damage - no damage front, rear, right sides

Body shop says the car is repairable with used car parts. Frame seems to be intact. Engine was just maintained for a long-distance car trip - excellent shape. I can drive it.

I know that insurers usually try to total cars and give low-ball estimates (read the link on
http://www.certifiedautoappraisers.com/cccarticle.html from a prior posting on this subject). Do any members here have any tips on trying to save a car? Used and even new cars are in short supply now - would rather not go that route.

Thank you!
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anon_investor
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Re: Trying to Prevent Car Total by Insurance Company

Post by anon_investor »

BogleLearner wrote: Tue Jun 15, 2021 9:26 am Thank you all for your input in advance - I am trying to keep a low-mileage car
that was in an accident several days ago - side-swiped by a large pick-up truck.
Information on the car:

Make/Model - Subaru Outback 2.5 i, Year 2009
Color - White
Mileage - 65,976
Owner - I have been the only owner - purchased new
Condition - Very Good (notch down from exceptional, definitely not average)
Maintenance - Same good mechanic over the years - by the book
Damage - Driver side 2 doors main damage - no damage front, rear, right sides

Body shop says the car is repairable with used car parts. Frame seems to be intact. Engine was just maintained for a long-distance car trip - excellent shape. I can drive it.

I know that insurers usually try to total cars and give low-ball estimates (read the link on
http://www.certifiedautoappraisers.com/cccarticle.html from a prior posting on this subject). Do any members here have any tips on trying to save a car? Used and even new cars are in short supply now - would rather not go that route.

Thank you!
You can buy your "totaled" car back from the insurance company for less than the insurance payout sometimes. My dad has done that before. Might be worth looking into.
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quantAndHold
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Re: Trying to Prevent Car Total by Insurance Company

Post by quantAndHold »

“Totaling” a car just means that the amount it’s going to cost to fix hits a threshold relative to the book value of the car. There’s not really much you can do about that.

When they total it, they will probably give you an offer to buy the car back from them. If you really want the car, you can then get the car repaired, and get a salvage title. When (if) you try to sell the car, you won’t get as much money for a salvage car, but on some older cars, it might be worth it to do, especially if you plan to keep the car forever.
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RickBoglehead
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Re: Trying to Prevent Car Total by Insurance Company

Post by RickBoglehead »

Since it appears that your insurance company hasn't said anything yet, I suggest you wait to see what they say.
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retiringwhen
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Re: Trying to Prevent Car Total by Insurance Company

Post by retiringwhen »

quantAndHold wrote: Tue Jun 15, 2021 10:29 am “Totaling” a car just means that the amount it’s going to cost to fix hits a threshold relative to the book value of the car. There’s not really much you can do about that.

When they total it, they will probably give you an offer to buy the car back from them. If you really want the car, you can then get the car repaired, and get a salvage title. When (if) you try to sell the car, you won’t get as much money for a salvage car, but on some older cars, it might be worth it to do, especially if you plan to keep the car forever.
I did this with a similarly aged car (a 9-year old Accord). We took the net salvage value (total value less the salvage value) from the insurance company and had the body shop do a good repair to keep the car presentable and driveable. The car drove a lot more miles until one of my kids finished it off (unfortunately an expected outcome and part of my reasoning to do the salvage thing)

Only problem was that the body shop re-bent the trunk lid instead of replaced it. We did have some leak issues due to that, but it saved $1,000 and that was about the salvage value.

Unless you are willing to subsidize the repair with additional money above the insurance payout, you will not get a car that is as good as before the accident. Just reality.

As an aside, I have seen it go the other way, the body shop told the adjustor a car was totalled. The adjustor low-balled the estimate, so they went ahead and fixed the car, but the actual cost was WAY over the total value. I made out like a bandit on that one and I am guessing the adjustor got some remedial training! That totalled and repaired car drove for another 200,000 miles and we were very happy! I am guessing the more recent estimation tools will reduce the likelihood of this outcome.
Topic Author
BogleLearner
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Joined: Thu Sep 17, 2015 4:21 pm

Re: Trying to Prevent Car Total by Insurance Company

Post by BogleLearner »

Thank you all for your input - am expecting a bad outcome because I had to work
really hard to keep another car - actually 26 years ago. Different times,
different insurance practices - but the system definitely works against the
consumer. Will report on the outcome.
squirm
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Re: Trying to Prevent Car Total by Insurance Company

Post by squirm »

Doesn't total, also mean it will have a salvage title?
psteinx
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Re: Trying to Prevent Car Total by Insurance Company

Post by psteinx »

I think OP's take, that the insurance company is eager to total damaged cars, is probably wrong.

From an insurance company's standpoint, it's easier to deal with a single transaction - writing a check to a body shop or a vehicle owner, rather than a more complicated set of transactions. (Writing a check for full value to the owner, after possibly negotiating over the vehicle's pre-crash value. Then disposing of the wrecked car.)

Rules on totalling cars if they sustain damage greater than X% of value, IMO, mainly protect vehicle owners. Our family has had two vehicles totalled in the last ~10 years, both after getting rear ended. In one of the cases, I advocated with the insurance company to total it rather than repair it (not sure if my advocacy mattered). I didn't want vehicles back that had been extensively repaired and had sustained substantial damage to the frame/unibody. The settled amounts were, I think, at least moderately generous.
Skiandswim
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Re: Trying to Prevent Car Total by Insurance Company

Post by Skiandswim »

Went through a similar car "total" for my daughter in NC. If we accepted net salvage on car then the car would have a salvage title. North Carolina insurers won’t insure a car with a salvage title, but you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. The car is then declared safe to drive, the DMV will issue the car a rebuilt title. You really have to make sure there is no hidden damage that the inspector will reject. The process seemed painful.

We ended up negotiating the total value by providing several detailed valuation comparisons and working up through management at the insurer. It took two weeks, but my daughter got 20% more than initial valuation.
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riverant
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Re: Trying to Prevent Car Total by Insurance Company

Post by riverant »

The book value is so low on a 2009 that any repair will exceed it. If you want to keep it, don’t file a claim and pay for any needed repairs out of pocket
helloeveryone
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Re: Trying to Prevent Car Total by Insurance Company

Post by helloeveryone »

Skiandswim wrote: Tue Jun 15, 2021 5:51 pm Went through a similar car "total" for my daughter in NC. If we accepted net salvage on car then the car would have a salvage title. North Carolina insurers won’t insure a car with a salvage title, but you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. The car is then declared safe to drive, the DMV will issue the car a rebuilt title. You really have to make sure there is no hidden damage that the inspector will reject. The process seemed painful.

We ended up negotiating the total value by providing several detailed valuation comparisons and working up through management at the insurer. It took two weeks, but my daughter got 20% more than initial valuation.
quick question as I don't know the terminology well...

So because you were able to get 20% more than initial valuation that means now they did not "total" the car and paid for repair?

thanks!
Jack FFR1846
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Re: Trying to Prevent Car Total by Insurance Company

Post by Jack FFR1846 »

We had an 09 Fusion a couple years ago in a similar kind of accident. Pass side fender, front and rear door and a little behind the rear door dented in. Because of the cost to fix and value of the car, they totaled it. I did a buy back. Because it's 10 or more years old, the state does not require it be retitled as owner retained salvage....it's a clean title. Ins co put retail value plus cost to register and title and sales tax at $5800. Buy back is 10%. With a buy back, you don't get the registration, tax, title costs. So I got the car and a check for $4800. I went to the local pull-a-part and bought a fender and the front door for $100. Put another 10k miles on it and then sold it for $2500, ready for new tires as my son had just bought himself a car. I would have kept it and kept driving it but our stable of cars got up to 7.

Let them total it, collect a check and keep the car if you want it.
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MarkRoulo
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Re: Trying to Prevent Car Total by Insurance Company

Post by MarkRoulo »

BogleLearner wrote: Tue Jun 15, 2021 9:26 am Thank you all for your input in advance - I am trying to keep a low-mileage car
that was in an accident several days ago - ...

Body shop says the car is repairable with used car parts. Frame seems to be intact. Engine was just maintained for a long-distance car trip - excellent shape. I can drive it.

I know that insurers usually try to total cars ...
The basic issue here is that the insurance company isn't going to pay out more than the totaled value of the car (there may be exceptions, but this is the basic structure of what you insured). They are offering to pay this to you in exchange for the car.

You don't have to accept. If you are willing to settle for LESS with the insurance company the insurance company will likely be fine with that. You'll just have to sign that you consider the claim settled or less than the totaled value of the car and then you can do what you like with it.
rooms222
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Re: Trying to Prevent Car Total by Insurance Company

Post by rooms222 »

The rules about totaling a car and whether or not it gets a salvage title, are state specific, like so many insurance issues. It helps immensely to mention your state.

For example, until recently, since your car was over 6 years old, if you bought it from the insurance company and took a payout, you would not have to declare it a salvage. http://sos-inspections.com/salvage-titles/
RubyTuesday
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Re: Trying to Prevent Car Total by Insurance Company

Post by RubyTuesday »

TJat wrote: Tue Jun 15, 2021 5:58 pm The book value is so low on a 2009 that any repair will exceed it. If you want to keep it, don’t file a claim and pay for any needed repairs out of pocket
Not so sure about that…We had a $3800 claim for stolen catalytic converter covered on a 2006 Prius. We couldn’t believe they didn’t total.

Edited to add: for some reason we still had comprehensive on this (at that time) 14 year old car. $100 deductible.
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valleyrock
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Re: Trying to Prevent Car Total by Insurance Company

Post by valleyrock »

I'd get your insurance company to send an adjuster to you to estimate the repair cost, rather than taking it to a body shop. Then you'll know what the story is. Make sure the adjuster emails you the repair estimate. Then look around for a body shop that will do the repair for that amount. Give them the estimate and ask if they can do it. A good shop might even call the insurance company to find out the "magic number," the insurance company's bottom line. I did this recently and the shop was willing to do it, using some old parts, and doing a few things less than perfect. Some shops won't do that, and you also must be certain the car is safe, of course, so this approach might depend on the nature of the damage.
It's sad when a mechanically sound vehicle that you keep a long time gets to the point that a small accident will result in the insurance company totalling it. Something is wrong there, but that's the way it is.
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bottlecap
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Re: Trying to Prevent Car Total by Insurance Company

Post by bottlecap »

Research cost to replace to ensure you get top dollar - especially in this market. If the insurance company totals it, ask about buying it back. Usually, you can buy it back for $500. I did it once to repair a 10+ year old vehicle, got it repaired with used parts, pocketed $1,000, and drove the vehicle another 7 years.

Typically, state law governs when and how it is totaled to "protect" you. Ironically, the state law usually makes sure you come out worse!

Good luck,

JT
Topic Author
BogleLearner
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Re: Trying to Prevent Car Total by Insurance Company

Post by BogleLearner »

Result - the insurance company did not total the car. The appraiser was very cooperative -
on a low mileage car that will keep going for quite some time (if not rammed again).
She even listed it as in excellent condition, and valued the car to reflect the excellent
condition and its low mileage. The car may be repaired and not totaled - the result we were seeking.
We did not expect this. Thank you again all for your advice and sharing your experience.
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