Expert: Richard Hixenbaugh - 9/24/2010

Question
I have had full coverage with Progressive on a 1996 Isuzu Hombre for 3 years. No prior accidents or tickets. My girlfriend who is also on the policy had an accident on rain slick roads in San Antonio, Texas and hit some sign poles. Progressive appraised the damages at $3300 and totaled the truck. A rep first offered a $2734 payout and a $2130 if we were to keep truck and have it repaired. Then a week later, I was told that since the truck had a Repaired/Salvage title that they would only offer $945. I was unaware at the time I insured with them that it had such a title since we just received a title this year because of the owner of the auto lot disapeering after we bought truck in 2004. The rep also told me that Progressive was the company that paid out the totaled claim in 2003 which gave it a Salvage/Title. I have been paying the same full premiums on this truck if it didn't have a Salvage title so what can I do? I feel either they should pay me the originally quoted payout or refund me for my overcharged premiums. What do you think. Thank you for your time in this matter.

Answer
Hi Brad,

This is a common problem. The insurance company should not deduct any more than 40% because of the salvage title. So of the original value was $2734.00 you subtract 40% which results in a figure of $1640.40.

Since Progressive is the insurance company that paid out on the original claim, the vin number should have been in their system alerting them to this fact when you bought the policy. It would be reasonable to demand that they refund an equal percentage of the premium for your collision & comprehensive premium that they end up deducting from the value of the vehicle.

If they give you any issues you can file a complaint with your state insurance commissioners office.

I hope this helps
Richard Hixenbaugh