Expert: Bennie719 - 7/4/2009

Question
I was hit by someone and now their insurance company has deemed my car totaled. The damage is only cosmetic. I want to keep the vehicle but they said I have to register it with a salvage title. The car is insured by the State of CA with minimum coverage. My question is, do I have to notify my insurer of the accident and will I lose my coverage after salvage titling my car. Also, if I am involved in another accident (which isn't my fault) is there any repercussion I will face with the insurance of the other party if my vehicle is salvage titled? Please respond to me directly to my email  

Answer
Hi Joan,
You do need to make a report of the accident to your insurance
company so they can file a SR-1 proof of insurance with DMV
that you were insured at the time of the accident.

The at fault insurance company will the fair market value of your
car as of one minuet before the accident based on the year, make, model, mileage, equipment and condition.  

You should do your homework and check all available sources to
determine the fair market value of your car.  The adverse insurance
company will make you the lowest possible offer to settle this loss.
If you have done the proper research, you will be able to make a
counter offer and negotiate a more fair settlement for your car.

If you desire to retain the damaged car, they will deduct it's salvage value (based on past experiences or current bids) and
pay you the difference.  They are required by state and federal
law to process the title of your car through DMV and have it
branded as SALVAGE.

You can then do any necessary work to the car and you must
(at your expense) take the car through several mandatory
safety inspections, after which you will be able to continue
driving the vehicle.

The fact that your car has a SALVAGE title reduces it's value to
50% or less of what an identical car in the same condition with
a clean title is worth.

If the car is totaled in a future non-fault accident, then a
future settlement will be based on it's reduced value.

I hope that you find this information to be of help.  Your
feedback by rating my response will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area