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2013 Honda Civic LX, 106K miles, estimate to repair $7800. The insurance company was agreeable with that figure but when they considered the mileage they decided to total it. It runs good and no issues with the rear suspension. Still driving it.
What do you think is "fair" as far as the outcome of this vehicle damage claim?
a. pay the salvage cost and keep it and keep the check based on the value the insurance company is dictating.
b. take a check and let them keep it.
Yes and the insurance company is of course going to lowball and we need to decide middle next week on "fair value" that will be proposed to them. What it was worth before the wreck. I'm trying to help someone who has no experience in such matters. I have myself but not with such newer vehicles and the way they are now made. Newest one I had with damage claim was a 2000 truck. Todays car and those is the last 10 years are not built like they used to be.
Here is part of the estimate. On that sheet you see over $6600 shown there with various items. and that is on 1.25 pages of a 7 page estimate.
Last edited by howard555; 01-29-2023 at 10:24 AM..
I think I'd take the payout and keep the car and then try to sell it. I'd be willing to bet there are at least a few people out there who'd be willing to drive it as-is.
As a young adult one of my first vehicles was a 4-door Honda Civic that had hail damage all over the roof and hood. I think it was also about 10 years old at the time, and also had about 100k miles on it, just like your car. I thought it was great that I was able to pick it up for fairly cheap, and I knew as a Honda Civic it would be a reliable car for me. I happily drove it for a few years and didn't care about the blemishes that it had.
If I had to guess, I'd say that car as-is might be worth around maybe $5000.
If you plan on keeping it, find out what if any "branding" will be placed on the title. Next research how your state regulates that type of brand (especially if road use is impacted) on a title and the requirements to have that branding modified.
Howard, fair is where you go on rides and eat cotton candy. There is nothing fair about insurance claims. Nobody is ever happy with what they get and the idea of "made whole" is a myth.
That being said let's look at a few things.
How a total loss is determined varies from state to state. I don't know where you are so I'll explain the two main methods.
1 - Percentage. If the repair cost is equal to or is greater than a percentage of the Actual Cash Value then the car is a total loss. Percentages vary by state from 50% to 100%.
2 - Total Loss Formula. If the cost of repair + the salvage value is greater than the Actual Cash Value the car is a total loss.
You can pick your state from the following list and do the calculations.
Don't get starry eyed. The insurance company's ACV will be somewhere between dealer price and dealer trade-in. Let's say $10,500 if you are lucky.
I say "if you are lucky" because insurance companies use a service called CCC to value vehicles and it always comes out less than people believe what their car is worth and the insurance company has a lot more resources to fight you with than you have to fight them with.
The repair estimate is $7800. 75% of $10,500 = $7875. Close enough to be a total loss because there is always a chance, almost a certainly, of hidden damage not seen during the original damage estimate.
Once you and the insurance company have agreed on an ACV you have to decide if you want to keep the car, with the settlement reduced by the salvage value and your deductible, and then figure out how to repair it with the money in hand or you can drive it as is.
You are pretty much guaranteed a salvage title. You might not be permitted to operate it if you don't repair it.
See what sort of a deal the insurance company offers and come back for more conversation if you like.
Howard, fair is where you go on rides and eat cotton candy. There is nothing fair about insurance claims. Nobody is ever happy with what they get and the idea of "made whole" is a myth.
That being said let's look at a few things.
How a total loss is determined varies from state to state. I don't know where you are so I'll explain the two main methods.
1 - Percentage. If the repair cost is equal to or is greater than a percentage of the Actual Cash Value then the car is a total loss. Percentages vary by state from 50% to 100%.
2 - Total Loss Formula. If the cost of repair + the salvage value is greater than the Actual Cash Value the car is a total loss.
You can pick your state from the following list and do the calculations.
Don't get starry eyed. The insurance company's ACV will be somewhere between dealer price and dealer trade-in. Let's say $10,500 if you are lucky.
I say "if you are lucky" because insurance companies use a service called CCC to value vehicles and it always comes out less than people believe what their car is worth and the insurance company has a lot more resources to fight you with than you have to fight them with.
The repair estimate is $7800. 75% of $10,500 = $7875. Close enough to be a total loss because there is always a chance, almost a certainly, of hidden damage not seen during the original damage estimate.
Once you and the insurance company have agreed on an ACV you have to decide if you want to keep the car, with the settlement reduced by the salvage value and your deductible, and then figure out how to repair it with the money in hand or you can drive it as is.
You are pretty much guaranteed a salvage title. You might not be permitted to operate it if you don't repair it.
See what sort of a deal the insurance company offers and come back for more conversation if you like.
I've generally found NADA tends to produce the highest values for cars. I've sometimes gotten insurance companies to raise offers on cars by using NADA as a source. Of course, I also encourage individuals to dig out all repair invoices during the last calendar year as this often gets insurance companies to raise a total loss offer as well.
What I have noticed over almost 40 years of legal practice though is that about 90% of people believe their car is worth more than it really is. They have difficulty accepting the reality that a twelve year old Nissan or a fifteen year old battered Ford pickup is only worth a very limited amount of money. One of the most difficult aspects of my legal practice has been having to listen to people who will give very long, detailed speeches attempting to explain why one of these vehicles is really worth about twice what it really is. I can only imagine what this must be like for a property damage insurance adjuster.
I've generally found NADA tends to produce the highest values for cars. I've sometimes gotten insurance companies to raise offers on cars by using NADA as a source. Of course, I also encourage individuals to dig out all repair invoices during the last calendar year as this often gets insurance companies to raise a total loss offer as well.
What I have noticed over almost 40 years of legal practice though is that about 90% of people believe their car is worth more than it really is. They have difficulty accepting the reality that a twelve year old Nissan or a fifteen year old battered Ford pickup is only worth a very limited amount of money. One of the most difficult aspects of my legal practice has been having to listen to people who will give very long, detailed speeches attempting to explain why one of these vehicles is really worth about twice what it really is. I can only imagine what this must be like for a property damage insurance adjuster.
This. Your 15 year old Civic isn't worth as much as you think it is. I mean, I suppose some people will pay up, but most people are going to say no, I'm not paying 5 grand for a heap that's damaged. Plus some vehicles hold value far longer than others. Values depend on insurance coverage and companies too.
I've had two vehicles totaled, both motorcycles - one wrecked (that was fun) and one stolen, recovered and dropped off the tow truck and destroyed. Insurance company paid out full value both times - what it would cost me to go out and get the same make/model/year bike at a dealer, plus tags, tax and title included. When my 2011 GSX-R600 was stolen and totaled in 2016, I only lost a couple grand from MSRP. Less considering what I actually paid for it. I called it a 4 year rental fee. They paid my tax/tags/title fees back too. When I got into my accident on a 2006, same. They also paid for the gear that was trashed - helmet, jacket, pants and boots
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