Expert: Richard Hixenbaugh - 6/18/2009

Question
After an accident my son's insurance company informed him that his auto was totaled and offered him FMV. A qualified independent repair facility has inspected the car and can repair it like new for about 35% of the total value. My son wants the car repaired. The insurance company states they will not repair it but only total it and will give him a check for the full value.  Is there a way to force the insurance company to pay for repairs and NOT total the automobile?  Their position does not make economic sense for either party.  Thank you for any assistance you can provide.

Answer
Hi Herb,

In most cases the decision to repair or total a vehicle is totally up to the insurance company. They can total the vehicle if it only has $1.00 in damage if they want to. However, most insurance companies will total a vehicle if the cost of repairs is at or above about 70% of the vehicle's value.

If you have a legitimate written estimate from a legitimate body shop you should take a copy of the insurance company estimate to your body shop and ask them to explain in detail where the differences are. Parts and labor costs are essentially the same from body shop to body shop. Usually a lower estimate only means you are getting less repairs. This can lead to an unsafe repair. It is very unusuall that a body shop would write a significantly lower estimate than an insurance company, considering that the body shop wants to maximize profits and the insurance company wants to minimize costs.

If you feel there is some funny business going on here, you should contact your state Insurance Commissioners Office.

I hope this helps
Richard Hixenbaugh