Expert: Richard Hixenbaugh - 7/24/2010

Question
I`m from massachusetts.I bought a car that had a salvage title and was state inspected a passed to be sold as safty worthy..The car was in excellent shape inside and out..When i insured it i asked if I needed to have it appraised cause i wanted to have full coverage on it.They said it had been inspected by the State and that was good enough..Who am i to argue.The other night while i was sleeping ,some lady crashed into it and they claimed it totaled..On NADA my car is worth $5300.00 ,,But they only want to pay me $3100.00 because thats what i payed for it.I know i got a deal on the car,but i can`t get that deal again.I feel they should be giving me the book value of the car,thats why i had insurance.....If i got the car for nothing,,would i be gtting nothing??

Answer
Hi Armond,

The insurance company owes you for the value of your car not what it costs to replcae it. A vehicle that has a salvage title or a rebuilt title is only worth about half (50%) of standard values. Even though the vehicle was inspected by the state and even though the car was insured, it will always be worth only about 50% of standard value. This is due to the fact that a most consumers do not want to own a vehicle that was so badly damaged in a collision that it was totaled and then rebuilt and put back on the road. The reason you got such a good deal on the car is because no one else wanted to buy it and no one else would ever pay full value for it.

I think you should accept what the insurance company is offering.

I hope this helps
Richard Hixenbaugh