1994-2002 [Subscribe to Daily Digest] |
Quick note on how insurance works. They are only responsible for replacing the vehicle. Now, if you had bought a mint condition car that does not exist anywhere in the world, then you would have needed to get an independent appraisal done. That value would be sent to the insurance company. They might charge higher premiums for the higher value.
As it stands, the insurance companies subscribe to a service that tracks all vehicle sales. It is always going to be low. That is why the insurance companies use the service. There have been plenty of class-action lawsuits. The values are not COMPLETELY off the charts, but they are a bit low since they don't consider many aspects that we as savvy buyers always check into: service history, has it been modified, certain years/options that are much more desireable, etc.
Another aspect of how this works is that YOUR insurance company handles EVERYTHING on your end. Value of the vehicle, finding a replacement, whether you want to buy the salvage title, rental cars, etc. Once you are competely taken care of, they hand over the ENTIRE bill to the insurance company of the person who was at fault. Some insurance companies only pay 90%, no matter who is at fault. With the logic that to go to court would cost more, so your insurance company just settles to be done with it. Also, even if the police find no fault on your part, some insurance companies (State Farm, I've heard) refuse to pay more than 75% if you were hit on the side or front. Their logic being that you chose to get on the road that day, so you're 25% responsible. Again, hoping that litigation would cost more.
SO, your insurance company has all these costs involved with dealing with the other insurance company. And many times they have to just eat part of the claim. Happens all the time.
With that in mind, you still want to document everything about your vehicle that makes it worth more than a similar vehicle. If you are buying the salvage, document why the wreck is not worth as much as they think. If the airbags did not deploy, then the salvage is worth just that much more. I'd avoid buying the salvage title unless you are prepared to store it and use it for parts. If you are in a wreck later in a salvaged vehicle, and are injured due to some safety feature not working, things will not go well. There are plenty of cars out there, just get another one that is 100% sound...
posted by 209.193.1...
, Sun, 12 Feb 2012 12:09:26, Sat, 11 Feb 2012 15:38:49, Fri, 10 Feb 2012 10:14:05
, Fri, 10 Feb 2012 03:53:55
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