Expert: Richard Hixenbaugh - 3/5/2009

Question
My 1987 honda was rearended by a Golden Gate Bridge District bus(California).  No question - their fault - no injury to anyone.  They are self insured. Damage to car from autobody - $2200. They will only pay $717.  If I go to small claims court will I be able to recover the cost to repair?

Answer
Hi John,

A 20 year old Honda has very little value. It might be worth about $1000.00 to $1200.00. If the cost of the repairs is more than 75% of the value of the vehicle then the vehicle is considered to be a total loss. The insurance company (or bus company in this case) would pay you the value of the car and then they would own the salvage and sell it to a junk yard to recover some of their money. In this case, it sounds like they are offering you just below the 75% of value so you can keep the vehicle. If you went to small claims court you would not be awarded the cost to repair the vehicle. You are only entitled to collect upto the value of the vehicle or the cost to repair not to exceed the value of the car.

I hope this helps
Richard Hixenbaugh