Insurance Declares My Car a Total Loss
I recently had a mishap with my 2015 Honda when a large tree branch fell on it, leaving a significant dent in the roof. While the car is still drivable and functioning well, I decided to contact my insurance for repairs. After they assessed the damage with photos, they concluded that they would total the car, citing repair costs of around $10,000 and offering me a settlement of $13,000.
I’m considering keeping the car since I haven’t determined the salvage value yet and it still drives fine. I also got my own repair estimate from a local shop that came to $3,500. Should I present this lower estimate to my insurance? Would they reconsider their decision based on that? I’m a bit baffled by the total loss designation when my vehicle is still perfectly operational and has a lot of life left in it. I’m located in Washington state, and I understand I might need to go through the rebuilt title process if I keep it. Any advice on how to navigate this situation would be greatly appreciated. Thank you!
It sounds like you’re in a somewhat frustrating situation, but you’re not alone; many people find the total loss determination confusing, especially when their vehicle still seems functional. Here are a few steps you can consider:
Share Your Repair Estimate: Yes, you should definitely share your $3.5k repair estimate with your insurance company. While they initially valued the damage at $10k, presenting a lower estimate may prompt them to reevaluate their assessment. Insurance companies often rely on their own appraisals, but a reasonable and documented estimate from a trusted local shop should be taken into account.
Understand Total Loss Criteria: In Washington State, a car is typically considered a total loss when the cost of repairs plus the salvage value exceeds its actual cash value (ACV). Since your car’s ACV is $13k, the insurance company feels that repairing it isn’t financially viable based on their assessment. Your lower estimate might show that it’s worth repairing and could sway their decision.
Consider Salvage Title Implications: If you decide to keep the vehicle and go through the rebuilt title process, be prepared for some implications. Your car will have a branded title, which can affect resale value and insurance coverage in the future. Make sure you weigh this decision carefully based on how much you value the vehicle.
Communicate Clearly with Your Insurer: When you reach out to them, be clear about why you believe the car should not be totaled. In addition to providing your repair estimate, express your concerns about the condition of the car and its functionality.
Consult with a Professional: If you encounter pushback or if the situation becomes too complicated, you might consider speaking with an attorney or a claims adjuster who can offer professional guidance, especially regarding Washington state laws and your rights.
Navigating the insurance process can be tricky, but being well-informed and proactive in communicating with your insurer will work in your favor. Good luck, and I hope you get a resolution that feels fair!