Expert: Richard Hixenbaugh - 11/3/2009

Question
Our insurance company has declared our 2006 ford taurus a total loss for an accident where we are not at fault. The car title has a prior salvage stamp on the title due to the fact that it was a total loss before it was resold to us. The insurance company was aware of this when they insured it and there is nothing in our policy referring to a reduction in a claim due to the prior salvage title. They are now trying to reduce the value of the vehicle by 1000 for the title being prior salvage. Is this normal procedure? In addition they are trying to reduce the value by an additional 1000 for a scratch on a door and dent in the bumper that they say is covered if we file a separate claim for each one. Can it be added to the total loss claim?

Answer
Hi Melissa,

A vehicle with a salvage or rebuilt title is generally worth 35% to 50% less than a vehicle with a clean title. The salvage stamp is an indication of prior significant damage and consumers do not want to own previously damaged vehicles. Hopefully when you bought this vehicle you paid significantly less than the standard value or you were taken advantage of.

The reduction in value is a standard practice.

I hope this helps
Richard Hixenbaugh