Expert: Richard Hixenbaugh - 6/24/2011

Question
Hi Richard,my car was hit by a woman who has insurance.  Her insurance has now said they will settle the claim, (they say the car is a write off) the retail value of the car is R30 000.00 and they want to pay me out R15 300.00 (Apparently that's less the salvage value)  what can I do? Is this a fair offer?  I cannot buy another car, nor have this one repaired for the amount they are offering.

Please help?
Morag

Answer
Hi Morag,

If your vehicle is a total loss, the insurance company should be paying you for the full value of the car plus sales tax and they take the car and sell the salvage to recoup some of their money. If you intend to keep the car, then the insurance company will deduct the expected salvage value that they could have received. However, in my over 20 years experience I have necer heard of a vehicle having a salvage value that is 50% of its standard value.

You need to argue this point. Make them prove that this is the correct salage value. Have them give you the name and phone number of the buyer that gave that salvage bid.

The bottom line is, do not sign over the title or giuve them possession of your car until you are satisfied with the settlement.

I hope this helps
Richard Hixenbaugh