Expert: Ron Cercone - 4/2/2009

Question
I reside in Florida, and I just had my auto totaled by the other auto's insurance company, which accepted full liability.. The value of my car exceeds the property damage coverage of the other party. Am I ENTITLED, by law, to any salvage value that the insured's company retrives. If so, do you know the exact Florida statute. My company wants me to repair a very damaged car, so they are out of the equation, I imagine. Thanks, Jim

Answer
Hello James,

I don't know Florida law, but it can't be too different from other states on stuff like this auto property damage and salvage.

First of all, if the other drivers insurance limit is less than what they valued the car at, they have no right to the salvage. What they should do is make a valuation, deduct the estimated salvage value (assuming you will retain the salvage) and pay you up to their insured's policy limit. So if they say your car is worth $17,000.00 and they deduct $500.00 for salvage, and the policy limit is $15,000.00, then they should send you the 15K, you can sign a release and make a notation on the release that you do not release any damages over the 15K. The damage left over the 15K, $1,500.00, you can sue the other driver for in small claims court. But get the 15k money before you file suit.

Now your own company is another story. If your company's repair cost is higher than the other driver company's total loss valuation or policy limit, then take your own insurance company's settlement. You don't have to repair the car if you don't want to, or you can do your own repairs if you want to. If they say the car is worth repairing, let them estimate the damage and you take the amount over the 15k less your deductible (unless your policy will waive the deductible under the "underinsured motorist PD coverage).

Since the accident was not your fault, your premium should not be raised by your own insurer.

You could also just take all the repair cost money from your own insurer and let your insurer collect back from the other company.

You have many options. If your car is totaled out, make sure you get a fair settlement by checking out one of the Total Loss Auto eBooks at http://www.uclaim.com/ .