Expert: Denise - 12/26/2004

Question
Hi Denise,
2 weeks ago my vacant car was parked off road.  A distracted driver smashed into my car causing $11,500 worth of damage.  Both cars had to be towed from the scene.  My insurance adjuster sent the Collision Repair Center a check to fix my car. The problem is I do not want the car anymore.  I do not feel it would be "as good as new"  I still owe $13,500 on the 2002 Ford Explorer XLT.  Someone suggested that I hire an independent insurance adjuster to check out my car.  I want to get the car totaled so I can get a new car.  What do you suggest?

Answer
Hi-
Your auto insurance policies doesn't provide replacement cost coverage, although you may have the ability to buy "Auto Loan/Lease Gap Coverage" which can pick up the difference on a new car from it's actual cash value at the time of loss, vs what you owe on it.  Usually it's some percentage of damage before the vehicle is considered to be a total.  So, if your vehicle is worth $30,000 and it would take $11500 to bring it back to what it was, it's unlikely that it would be considered a total loss.  That occurs when the cost to repair it exceeds or gets close to the actual cash value (market value less depreciation for wear & tear ie mileage). It don't see that you have a lot of options, but would suggest having it carefully checked for damage to the frame.  Good luck!