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Auto Insurance Claims/Rebuilt title/insurance policy

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Expert: - 5/2/2010


Question
I recently bought a salvaged title vehicle.  When I called my insurance company to have it added to my policy they never asked any questions regarding its title.  I went ahead with full coverage on the vehicle.  Does it make a difference if the title is clean/rebuilt to my policy for monthly payment purposes or if we were to get in another accident?  I know the value of the car is lower, I just didn't know if my insurance company needs to know that it is a rebuilt title.  Thanks

Answer
Hello,

Yes, it makes one heck of a difference! In the event of a claim, you will find that the vehicle is worth up to 35% less. It doesn't matter if you tell them that it is a salvage. They will already know at the time of the claim. They use carfax and other sources. You will not get actual cash value per Kelley Blue book at the time of a claim.

You might as well tell your agent now, because they may lower the premium you are paying. Do not ASSUME that you know more than the insurance company. In many cases, they are looking for anyway that they can diminish their claim exposure.

Auto Insurance Claims

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Rob Painter, Ase, CFEI, CAFATE

Expertise

Please remember. I am not an attorney and cannot legal advice. My answers are based on my experience due to litigation I have been involved in as an expert, for both insurance companies and while oposing them opposing them. I deal with only comprehensive claims on autos related to fire and theft. I have even had the opportunity to rewrite policy coverage language as it relates to vehicle theft and forced entry for insurance defense attorneys.

Experience

Experience in the area: Working with insurance companies and attorneys on these issues for over 20 years. It is very common to have a reported stolen car with a so-called factory anti-theft system to have the theft claim denied. I have served successfully as an expert witness in the courts across the US representing the insured and their attorney revealing that the insurance expert did not take all known theories into consideration before rendering their "Forensic" conclusion. Many insurance carriers us independent "Forensic" experts to examine reported stolen vehicles commonly using flawed methodology implicating the innocent insured with the theft. My job is to determine if the insurance expert reached his conclusions based on accepted scientific principals or just net opinion with no basis other than opinion. My case record against such experts is very compelling.My resume can be seen at the catagory "Auto Theft and Prevention." In "Forensics" the scientific method must be employed. In the forensic locksmith field determining how a reported stolen vehicle was last operated, many processes cannot be duplicated and are conveniently not addressed. If they were, juries would have the opportunity to make a fair and impartial opinion at least about what the expert could or could not prove. There is a purported process determining the last key used. The chances of determining such is very rare uless the key is found in the ignition lock. Experts commonly destroy evidence as well and are rarely questioned on this event. I reveal the weakness in their testimony on such instances.

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