Expert: Richard Hixenbaugh - 12/17/2009

Question
Our car was stolen and found about 2 weeks later. Insurance company totaled the car. made an offer. then starting making deductions for preexisting damage. which was a little rust and some scratches on the left corner bumper. which they said was more but I argued the point. If they are not going to fix it, why should it be deducted from their offer, saying that would be how much it would cost to fix preexisting damage. then the $500. deductible which I understand  

Answer
Hi Mary,

Total loss claims are settled on the basis of fair/retail market value. A vehicle that has pre-existing damage is not in retail condition and would have to have the repairs done in order to be considered in retail condition. So it is appropriate to make a deduction to account for the difference between your vehicle and retail value.

I hope this helps
Richard Hixenbaugh