I have a cheap car valued at approximately 75% of its worth, which is around $5,400, while the estimated repairs are around $5,700. I’ve received advice suggesting that I should find ways to prove the car’s value and request a re-estimation. However, the adjuster told me there’s no way to change the decision. Most of the information I find online regarding the validity of either claim seems to come from law firm blogs.
If I have no options left, then I have no options. But it’s incredibly frustrating to be so close to that magic number.
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Lowering the percentage below 75% doesn’t ensure that the vehicle will be saved. GEICO can still classify the vehicle as a total loss even at a lower threshold. While 75% is the point at which they are required to total it, it is not the only point at which they can do so.
The initial estimate will probably increase as work progresses.
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It’s definitely not just $300. You’re overlooking that once the repairs begin, the shop will probably discover more issues that need fixing. That $5,700 could quickly escalate to $7,000 or $8,000.
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Absolutely. That’s the correct answer.
I understand that. That would apply regardless of whether Geico repairs my car or I handle it myself.
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Yes, they determine if it’s considered totaled based on the estimated and supplemental costs according to state guidelines, not you.
Even if it’s just $1 over the threshold, they are legally required to total it. This is a state regulation, not an insurance policy.
I encountered a similar situation where the repairs cost $6,800, but my car was only valued at $7,000. I had no choice but to hand over my cherished, paid-off Honda and accept the $7,000. My insurance company, Mercury, refused to consider other appraisals for the car’s value.
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Oh my gosh, me too. I was heartbroken because I had paid off my cherished Lincoln two years early, which meant I was free of payments for about three years. I recently paid off my current car two years ahead of schedule, so I’m payment-free again.
Your insurance can declare it a total loss even if the damages are below the 75% threshold, if they choose to do so.
The 75% figure isn’t a definitive amount. I work for a company similar to GEICO, using the same software and selling our salvaged cars at the same location. They’ll likely recover about 30% from that salvaged vehicle at Copart. For instance, if your car is valued at $7,200 (based on your claim that $5,400 represents 75%), they would auction it off for just over $2,000. Therefore, totaling it at $7,200 effectively costs them only $5,200. So, the actual difference is $500, not $300. Additionally, repairing the vehicle takes longer than totaling it, which means you’ll be removed from your rental sooner, resulting in even more savings for them. Moreover, if the repair cost is currently $5,700, they will likely uncover additional hidden damages once it’s in for repairs, which could add another $300, $700, or even over $1,000. Based on the current estimate, it seems like a total loss. Start exploring your options; you’re unlikely to change their decision.
A more relevant question might be why you have full coverage on such an inexpensive vehicle.
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Was he carrying full coverage, or was another party responsible?
In either case, the car is likely totaled. However, the payout usually doesn’t account for the value of a vehicle you’ve owned for years, kept in good condition, and are familiar with all its defects and issues, especially when you’re not making car payments.
Additionally, depending on the car’s age, sourcing parts for an out-of-production vehicle (or one with an older body style) can be quite challenging. The COVID-19 pandemic has highlighted the fragility of supply chains, making it difficult for repair shops to obtain new OEM parts, quality reproductions, or reliable used parts.
It’s also important to note that most insurance companies work with their “preferred” repair centers, which typically offer warranties on repairs for as long as you own the car. If they can’t obtain reliable parts, they cannot adequately support that warranty, leading them to prefer cash settlements, which are often cheaper and easier.