Expert: Richard Hixenbaugh - 10/15/2009

Question
HI,I TOTALED MY R-TITLE 2000 DURANGO.ERIE INS WANTS TO PAY ME A REDICULOUS LOW AMOUNT.FUNNY THING IS I PAYED FULL PLEMIUM INSURANCE RATES AND THEY WANT TO GIVE ME 50% VALUE. WHEN MY SISTERS R TITLE WAS TOTLALED SHE WAS PAID FULL VALUE-BY ERIE INSURANCE.WHAT GIVES! HOW ABOUT 50% REFUND ON MY PREMIUM.

Answer
Hi Eric,

Well you did not ask a question but I will try to be helpful.

When any vehicle is wrecked and repaired it suffers from a loss of value. This is because most consumers do not what to pay full price for a wrecked and repaired vehicle. The more severe the damage the greater the loss in value. A vehicle with a R-title or REBUILT title means that the vehicle was so severely damaged that it was totaled out by an insurance company and then some rebuilder bought the car as salvage and rebuilt it. There have been numerous news stories across the country about the poor quality and unsafe repairs thet are often done to these rebuilt vehicles. As a result these rebuilt vehicles will generally have a market value that is 40% to 50% below standard market value.  

Hopefully you received a substantial discount when you bought this vehicle, so there should not be much of an actual loss on your part. And yes, you should ask the insurance company for a partial refund since the premium you paid was based on a vehicle with a higher value.

I hope this helps
Richard Hixenbaugh