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Auto Insurance Claims/new car in a rear end collision

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Question
Hi

I have a 2013 camaro with less than 5000 miles and was recently rear-ended.  The insurance company does not want to total it, I will lose a lot of value on the car and not be able to trade it in as a result in the future as carfax will report the damage and thereby lower the value.  Currently the damage is at approx $9100 and there may be more as they were not able to get the car on a rack due to the extensive damage.  I was told that a new car with extensive damage should be totaled because of the loss of value.  I live in NY. Is this true?

Answer
A car is deemed a total loss when the repair cost equals or exceeds the actual cash value (the amount you could sell it for).  Some states have laws that require a car to be totaled if the repair cost exceeds a percentage of the actual cash value.  In Maryland, this is 75%.  You can do a Google search to see if there is law like that in your state.

If the vehicle is repaired, you probably also have a diminished value claim.  This is the difference between the actual cash value after repairs, and what the actual cash value would have been if there was no accident.  You can get an idea as to what this is by asking a few car dealers or checking online guides like  NADA or KBB.

Auto Insurance Claims

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Claims Guy

Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 20 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 20 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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