Insurance is declaring my car a total loss
My 2015 Honda was recently damaged by a large tree branch that fell on it, leaving a significant dent in the roof. Although the car is still drivable, I contacted my insurance company to address the repair. After they assessed the damage through photos, they determined that the estimated repair costs would be around $10,000, leading them to consider my car a total loss. They’re offering me $13,000 as a settlement.
While I’m still determining the salvage value, I’m thinking about keeping the car since it remains fully functional. I got my own repair estimate from a local auto shop, which came to only $3,500. Should I share this lower estimate with my insurance to possibly influence their decision? Do you think they would take it into account? I find the total loss determination puzzling, especially since my car is still in good working condition and has plenty of life left. I live in Washington state, and I understand that if I keep the car, I may need to go through a rebuilt title process. Any guidance on how to handle this situation would be greatly appreciated. Thank you!
It sounds like you’re in a challenging situation with your Honda. Here are a few steps you might consider:
Share Your Repair Estimate: Yes, definitely share your repair estimate of $3.5k with your insurance company. It’s important for them to know that you have a relatively low-cost option for repairs, which could influence their decision on whether to total the car. Insurers often prefer to pay for repair costs over total losses, especially if there is a viable repair option.
Request a Review: When you provide the repair estimate, request that they review their decision regarding the total loss. Explain that the car is functional and you are seeking a more balanced resolution that reflects its actual condition and repair needs.
Understand the Total Loss Criteria: Total loss determinations often rely on the cost of repair relative to the market value of the vehicle. In many cases, if repair costs exceed a certain percentage of the car’s value (often 70-80%), the insurer may decide to declare it a total loss. Since you’re getting offered $13k and have a repair estimate significantly lower than that, it’s worth pressing the case.
Consider Salvage Title Implications: If you decide to keep the car and pursue a rebuilt title, be aware of the associated regulations in Washington state. You will need to repair the car to meet safety standards and go through an inspection process. This can be time-consuming and may impact the car’s future resale value.
Get Advice: If you’re feeling overwhelmed, it may be worth consulting with an attorney or an insurance advocate who can guide you through the process and help negotiate with your insurance company if necessary.
Document Everything: Keep all correspondence with your insurance company and any documentation related to estimates and repairs. This may help if you need to formally contest their decision.
Ultimately, it’s important to advocate for yourself and ensure that you arrive at a resolution that makes sense for you. Good luck!