Question by rockmailer: Can the insurance company take your car if it’s totaled?
My car is a collectable and it was hit and run by other car leaving it with minor damage, I have complete coverage, my insurance company told me it was going to be considered totaled, I know the car is worth way more than was it was going to cost to fix it, they told me they would have to take my car. I had the car as collateral for a personal loan so they had to deal with the financial institution, finally they didn’t take my car and fixed it. Up to this day I never understood what happened ,,Do you have any ideas?
What do you think? Answer below!
When they hand you the settlement check to compensate you for the total loss, it is no longer your vehicle. They bought it from you.
Normally if the car is totaled, you don’t get to keep it. Instead the insurance co. takes it and sells it to another party, which may be a scrap yard, or an auction house, etc.
If you know this ahead of time, you can tell the insurance co. that you would like to purchase the car from them, instead of them selling it. Sometimes they’ll agree to this.
If your vehicle is considered a total loss, insurance “buys” it from you at fair market value. Once they have done that, they will take their car to a lot to sell parts off it it try and recoup their losses. So they are not taking “your” car, they are taking their car, which they paid for.
If you ask, sometimes they will sell you their car back at salvage value, and allow you to keep it. When they do that, they will issue a branded, salvage title on the car, not something you generally want unless you need parts off the car.
But since they fixed it, you have no problem. And your own insurance agent I’m sure would be willing to explain the way things are done if you would ask.
Of course they can. They paid you to replace the vehicle, based on actual value (not what you “know” it’s worth); and require the damaged vehicle in return.
If it was a collectible, you SHOULD have insured it for what it’s worth, by going through a classic/collectible auto insurance.
I’ve done that with one car that was book valued at $ 3k, but it’s insured value is $ 15,000. If it’s totaled, I get the $ 15k.
But since it got resolved, why are you complaining? Your question makes no sense, seeing as it worked out for you.