Car Total Loss Claim

Car Total Loss Claim Situation

Hey Reddit,

I find myself in a bit of a predicament with State Farm following a recent accident and could really use some guidance. Here’s the situation:

  • I still owe about $8,900 on my car loan.
  • State Farm has labeled my vehicle a total loss.
  • The repair costs are estimated at around $8,100.
  • The car is still drivable, and the damage appears to be minor.
  • Before the accident, Carvana offered me $3,500 for the vehicle.

I have a few questions:

  1. Buyback Option: Can I buy my car back from State Farm after they settle my loan? What does that process look like?
  2. Buyback Cost: Typically, how much should I expect State Farm to charge for the buyback? Is there a standard percentage or dollar amount?
  3. General Advice: Has anyone dealt with State Farm for total loss claims and buybacks? Any tips or important things to keep in mind?

I’d really appreciate any insights or advice. Thank you!

One thought on “Car Total Loss Claim

  1. Hey there! Sorry to hear about your situation, but I hope I can help you navigate this.

    1. Buyback Option: Yes, you can buy back your car from State Farm after they declare it a total loss. The process typically involves them providing you with a settlement for your car’s value after which you can negotiate the buyback. You’ll need to express your interest in the buyback during the claim process.

    2. Buyback Cost: The amount State Farm will charge for the buyback is usually based on the car’s assessed value after the total loss determination, which is often a percentage of the actual cash value (ACV) they assign to your vehicle. This can be anywhere from 10-30% of the ACV, but it varies by state and specific circumstances. Since Carvana offered you $3,500, State Farm may estimate your car’s value similarly, so the buyback could be in that range.

    3. General Advice:

    4. Keep documentation of everything: offers, assessments, and your communication with State Farm.
    5. Don’t rush the process—make sure you fully understand the terms of the buyback.
    6. You might also want to discuss with State Farm about the possibility of covering any minor repairs if you choose to keep the car.
    7. Be aware that having a “totaled” car can impact your insurance premiums in the future, so weigh your options carefully.

    It can be a complicated situation, but stay proactive and advocate for yourself. Good luck!

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