Salvage Value And Its Impact On Your Claim
Having your vehicle declared a total loss can be challenging, but know that even when a vehicle is deemed a loss by the insurance company it still may be possible to retain ownership. Talk to an Orlando personal injury attorney about how to protect yourself financially, including having a full understanding of salvage value and how it impacts your insurance claim.
Salvage Yards and Estimated Values
If your vehicle is declared a total loss but you still wish to keep it, you will move into a phase where the term owner-retained salvage will be part of your insurance claim. Then, insurance professionals will then deduct the salvage value from the total loss settlement amount they would have paid you.
Salvage value is the estimated amount the vehicle could be sold for in its damaged state. Insurance companies often sell totaled vehicles to salvage yards, which then either sell the vehicle for parts or repair and resell it.
An example of this is that if your vehicle’s cash value is determined to be $10,000 and the salvage value is set at $3,000, you would receive a settlement of $7,000 should you opt to hold onto a totaled car or truck. It will not be road safe at that point, so it will be issued a salvage title, indicating that it has been declared a total loss.
Cars with salvage titles can be difficult to insure, and its resale value will be significantly reduced. Some insurance companies may refuse to provide comprehensive and collision coverage for vehicles with a salvage title, so you need to be prepared for a denial or to receive insurance policies that carry higher premiums. Additionally, if you decide to repair and drive the vehicle, you’ll need to secure a rebuilt vehicle title to drive it legally, which requires an inspection.
Notifying Insurance Company
Let the insurance company know early in the process that you want to keep the vehicle, doing so means they will be able to adjust your settlement accordingly. You also need to be prepared for the vehicle to be issued a salvage title, knowing using the car immediately will not be an option. Research the steps needed to convert it to a rebuilt title if you plan to repair and drive it.
Before deciding to keep the vehicle, get an estimate for the repair costs and go through the financial impact of this choice with an Orlando personal injury attorney. Always speak to an experienced accident attorney before speaking to any insurance company. Part of the process could be contacting the insurance company to discuss coverage options for a rebuilt vehicle in order for you to have a comprehensive view of the monetary impact of keeping a totaled car or truck. It may be more financially sound to look for a new mode of transportation.
Could you use advice on next steps after a crash totaled your vehicle? Consult with the experienced lawyers at Israoui Law to make an informed decision and ensure that your rights are protected throughout the process. Call 407-381-4529 for the personal attention you deserve.
