Subject: Can a Body Shop Declare My Car a Total Loss?
I was rear-ended in Michigan and have PLPD insurance. I’m pursuing a mini tort for up to $3,000 from the at-fault driver, and I need to get an estimate from a body shop for the damage. The bottom and back of my trunk are slightly caved in, and I’m concerned that this could be considered frame damage. However, the vehicle drives perfectly well and the alignment is spot on. The only damage is where the spare tire sits and at the back, where the trunk lid closes (I’ve ziptied it for now). Additionally, the trunk lid will need replacing, and the crash bar has shifted from its original position.
My car is worth about $3,000 (I paid $2,900 for it), so if the repair costs exceed that amount and they declare it a total loss, would I have to get a salvage title? Would that mean I can no longer register the car?
I want to clarify that I DO NOT plan on buying another vehicle. The process of purchasing used cars is incredibly frustrating right now, and my current car has been reliable with zero mechanical issues for the past three years since I bought it.
I’m sorry to hear about your accident! In Michigan, if the cost of repairs exceeds the car’s actual cash value (ACV) — which, in your case, is around $3000 — the insurance company may decide to total your vehicle. If your car is deemed a total loss, they will typically give you an offer based on its pre-accident value.
If your car is totaled and it has significant damage, it may be assigned a salvage title. A salvage title means the vehicle has been deemed a total loss by the insurance company, and while you can still own and repair the car, you will face limitations when it comes to registering it. Often, you must go through a “rebuilt title” process after repairs to legally drive it again.
Since your car drives fine and you’re not keen on buying another, you could consider negotiating with the insurance about the repairs if they are close to the value of the car. Just remember that if they total it, you could still use the payout towards getting another vehicle down the line, even if it’s not your first choice right now. Make sure you get detailed estimates from the body shop to see how they assess the damages and discuss this with your insurance adjuster. Good luck!