Title: Why Do I Have to Pay to Keep My Car After a Total Loss?
Hi everyone!
I’m in Virginia and recently had a car accident that was entirely not my fault. The other party’s insurance accepted full liability, compensated me for my injuries, and has now provided a settlement for my 1991 Toyota Corolla, which they deemed a total loss. They offered me $3,347.72 but mentioned they would auction off the car to recover some of their losses.
However, they also said I could choose to keep my car, but I’d have to pay a “salvage value” and return 30% of the settlement amount, which adds up to $1,004 that I would essentially be paying for the privilege of keeping my own vehicle.
Is there any way I can retain my car without having to pay this salvage value? I haven’t reached out to my own insurance company for advice yet because it’s late, but I plan to do so tomorrow. This situation seems really unfair to me, and I feel strongly against paying a salvage fee just on principle.
Any advice would be appreciated. Thank you!
It sounds like you’re in a frustrating situation. In Virginia, if an insurance company deems your car a total loss, they typically offer you a settlement based on its market value. The option to keep your car usually comes with a salvage title, and the company recoups some of their losses by charging you salvage value.
While it may feel unjust to pay for something that was yours, it’s standard practice in these cases. Here are a few steps you can consider:
Consult Your Insurance Company: Since you’ve mentioned you haven’t contacted your own insurer yet, that should be your first step. They can provide guidance on this process and help clarify your options.
Negotiate: If you genuinely feel the amount they’re asking for is too high, consider negotiating with the insurance adjuster. It may be possible to come to a different arrangement.
Research Salvage Value: Look up what other similar vehicles are selling for in your area. If you believe the salvage value they’re asking for is inflated, you can present this information in your negotiations.
Consider the Financial Implications: While it might feel unjust, keeping the car means you take on potential repair costs and the challenge of getting it roadworthy again. Weigh these costs against the salvage value to see if keeping the car is worth it in the long run.
Legal Advice: If you continue to feel that you’re being treated unfairly, consider seeking legal advice. A lawyer with experience in insurance claims can provide you with tailored guidance.
Ultimately, while this process feels frustrating, working through the proper channels may yield some options that are more favorable to you. Good luck!