Value Of A "Totaled" Car ?

A co-worker's brother-in-law used to buy up cars written off by insurance companies, repair and sell them. If you can find someone like that you'll know what the insurance companies get for totaled cars. Another place to try is someone who buys them and parts them out. Try an auto wrecker.

Oddly, a 2 year old car might not be worth much. I've talked to someone who rebuilds engines from "totaled" cars. He won't rebuild an engine with more than 40k km (24k miles) on it. Too risky.

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Why is it risky? An engine that's done only 24,000 miles shouldn't NEED to be rebuilt. If the car has been wrecked, the engine should be inspected for damage. Some rebuilds require more parts replacement and/or machining than others, depending on the amount of wear. The "rebuilder" can determine the requirements by careful measurement.

As they say, it probably depends heavily upon where you are, and how your insurance company tends to handle claims.

My daughter, here in Texas, was hit from behind several years ago and the car was totaled. The insurance company of the at-fault party tried to duck out leaving her with less than she needed to purchase a similar one as a replacement. Quick talk, insinuations, Blue Book mumbo jumbo aside, you need to be put back into a similar vehicle as was destroyed.

Of course, Texas has some of the sorriest insurance laws in the nation. Some times you have to be pretty tough, complain to the insurance commission, hire an attorney to get what should rightfully be your settlement.

Having been thru this a few months ago, I can relate my experience...

My daughter wrecked her 2003 Mazda Protege we had purchased from Hertz a few months before. The insurance co. declared it a total loss. They based the offer on prices of similar cars (same make/model/mileage) in the local market (Phoenix). The body shop guy told me the insurance co. often uses the local Auto Trader ads

AT gives the max/min/avg of cars listed in the area you choose/ Sure enough, their offer was almost exactly what the AT ads for our area showed. It actually turned out to be a little more than we actually paid for the car. We signed the papers, took the check, and bought an identical car from Hertz. The whole process was pretty painless, all in all, much easier than I feared. Of course, paying the premium increase over the next few years (my daughter was at fault) will not be as painless...

Good luck...

If the car is financed and still has a balance, that will need to be taken care of before you get any cash. Ususally the finance co. will deal with them, but you sure need to be in the loop cause you'll be stuck with what insurance wont pay. You may actually lose money on that. I had one totalled, ins.paid the thing off, then I bought it back from the insurance co. before they offered it to an outside party as junk. I fixed it up so it could live to be totalled again a year later (thats a long story), but I did get my car back.

If its paid off, your pretty screwed if it cant be fixed up. You'll get book value (blue book here) and you can certainly negotiate. Dont let them BS you. Also, is it truely totalled or they just say it is?

I had another situation where I got a car at an auction, fixed it up, it got totalled and I got more than I paid for it from insurance and bought something even nicer.

well, good luck bud. keep us posted.

I remember having a car totaled (other dudes fault) and the insurance company tried to knock the value down at every turn they could. Their 'adjuster' insinuated that the transmission fluid was 'factory original and very dirty' and clearly had 'never been changed' therefore the car was worth much less due to a dodgy transmission. I showed them the receipts showing fluid changes at 30K and 60K to shut them up. The fluid was just 6K old and clean. They will stop at nothing to 'adjust' the true value of the car way down from a reasonable starting number to very little.

They may nick pick every item they can to try and wear you down in order to make you 'settle'.

If they are totally unreasonable I would offer to let them replace the vehicle with a one in similar condition and similar mileage. Of course they won't want to do that and probably will refuse the suggestion, but be sure to let them know they are off base if they are.

I would start at the retail value, since that is what you will have to pay to replace it quickly. They won't too happy to let you rent a car on their nickel while you 'shop around for a good deal'. If they insist you 'get out of the rental' quickly, insist on retail value for replacement of the totaled vehicle. Don't let them get it both ways.

I hate insurance companies. They suck.

JP

Robert11 wrote:

Don't forget about taxes! You are entitled to the taxes also if they are charged in your area. You had to pay them on the first vehicle, so they are part of replacement. Same for dealer prep and gas.

Also don't forget that the adjuster doesn't get paid until your case is off his desk. It gives you a bit of leverage.

Mike

86/00 CJ7 Laredo, 33x9.5 BFG Muds, 'glass nose to tail in '00 88 Cherokee 235 BFG AT's

Robert11 wrote:

Swapping stories: In the 1970's I bought a used off-make (Opel Kadet) and got rear ended. The other driver's insurance company offered more than I paid for the car so I took it, had the trunk hammered into shape so it could be opened and closed and locked, and continued driving the car for another year until I decided to get a newer vehicle, at which time I sold the Kadet for half what it cost me.

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My car was "totaled" after it was stolen and stripped for parts. The value of parts gone was probably less than the value I got, but then there's the labor. Also - a lot of stripped cars tend to have tiny problems that seem to go on forever. I got a list of local for sale offers for similar cars, which were used to arrive at a value. The adjuster was telling me that the offer was likely more than I could have realistically sold it for. I thought I might have been able to sell for $4500, but I got almost $7000 from the insurance.

I haven't heard of sales tax in private sales. That's basically what my offer was based on. I was thinking of selling it anyways so I didn't have to put out the effort.

How's this for irony? Not only did I get the total value, but my insurance company paid for my registration fees (pro-rated of course). Since my car was no longer insured, I also got a pro-rated refund of my insurance on the car. It wasn't that much, since I had two cars and there's an incremental amount for the second car. It was still a few hundred bucks.

Retail + sales/use tax + pro-rated license.

I.e. you should get what would (theoretically) replace the car with a similar one (in terms of make, model, options, condition) from the used car market.

Valuation may not be so simple, though, since there can be disagreement based on condition, or finding comparable cars for sale or recently sold on the used car market for rare models or options (though the latter is unlikely for a fairly new Accord).

Use the NADA site and Edmunds.com and read the local classified ads...you might be surprised. When they make an offer counter it in writing an average of the two highest prices and include copies of your documentation.

When rat> Hello:

Even private sales here in Canada are taxed when you register the vehicle. They go by the book value or receipt or appraisal.

I had a $500.00 van that the book said was worth 4500! Got that appraised for $400.00 and paid taxes on that.

Mike

y_p_w wrote:

retail price.

Ask the insurance company what they use.

Teach your son how to be a better driver.

------------- Alex