American Family Complaint

Car Insurance - Hail Damage - Car Insurance - Motor Vehicle

- Phoenix AZ
I own a 2002 Honda Civic 50,049 miles. No previous claims on insurance for this car, etc. My car had hail damage to the hood, trunk, and roof (no chipped paint or broken windows)-- took it to American Family Inspection today and it was declared totaled If I gave the insurance company my title ... I would get $6,171.96 (My car has been maintained with tune-ups and oil changes and I plan to keep for quite a long time..I was told to keep it I would get $4026.86 but would need to get a salvaged title before insurance would pay me. They is nothing mechanically wrong with my car-- Just cosmetic damage!!!!!
I went to Western (27th Bethany) and was told they could give me a salvaged title but would need to remove my license plates and issued a 3 day permit and would have to keep it parked in my yard (no longer would be able to drive until it was inspected by motor vehicle for road worthiness) The person working at the Motor Vehicle place told me there is a 3 week wait for inspections. I opted not to get a salvage title. I would not be able to drive my car if I did.
My car is driveable... I replaced a broken driver's side rearview mirror. A few of my peers at work have new cars that were damaged (hail only not even chipped paint) I can't get answers from my insurance company or settlement until I get a salvaged title. My car is DRIVEABLE no engine damage, etc. I DO NOT WANT THE INSURANCE MONEY -I was told by insurance that I have to get a salvage title whether I take a settlement or not!!!!!!!! Could you please help me? I have plenty of mileage left on my car and not planning on selling or trading it in.

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Reader Comments:

Posted by jusazkene1 on 10/21/2010
Couple of suggestions .. I would question the salvage bid of over 2k your insurance company quoted for you to retain the salvage. Under normal circumstances of a salvage bid a good rule of thumb is that the salvage bid is about 20% of the Actual Cash Value of the vehicle prior to the loss. Your ins Co is telling you the salvage is about 33% of the ACV. A salvage yard will not pay 33% for your vehicle and that is the normal buyer of a total loss. They wont due to the fact that the sheetmetal on your car doesn't have a market due to the extent of hail damage. This leaves the auction yard buyers but even they won't pay that much IMO. I recommend you tell your insurance Co that you are rejecting the salvage bid and want actual bids on the salvage. They will have to get actual quotes from wholesale salvage buyers and the bids should be substantially less. I would expected them to be between 700-1200. This obviously means more $$ in your pocket.

As for the 3 week delay in the salvage inspection problem ..do you have rental on your policy. You probably do.. if so you have 30 days of rental. If your vehicle is a total loss and cannot be resolved until you get a salvage title maybe your insurance Co will allow up to 30 days in rental so you can get your inspection done. Normal inspection appts aren't 3 weeks but probably are due to volume of hail damage salvage vehicles.
Last option (other than settling for the $6171.96 and having them tow your car away) is to see if they will make changes to the original estimate a

Posted by jusazkene1 on 10/21/2010
Oops..wasn't quite done....anyway AmFam allows it's policy holders an option for Appearance Allowance(AA) for a damaged part that still functions properly if the policy holder agrees to it...ie..scratch in $330 headlamp on collision claim an adjuster may suggest a AA of $100- $165 (usually up to half the face value) for an owner to live with the blemish if he/she chooses otherwise they must replace the part. This money can be used to compensate for the deductible or whatever the vehicle owner wishes. I suggest you ask your adjuster if he can change the estimate to an AA on the roof (I assume they wrote to relplace it and would be biggest cost). If the roof replacement cost with parts, labor and paint is $2500 have them change just that to a $1000 AA and see if the vehicle is now repairable. If the adjustments are made correctly you will still get about the same cash in your pocket as you would have had you opted to owner retain the vehicle but YOUR CAR WONT HAVE A SALVAGE TITLE. Only catch is you can't have a lienholder on the vehicle. AA's put cash in the owners pocket and if a vehicle is financed the ins Co isn't protecting the leinholder by giving AA's to the driver of the vehicle.
Sweet...hopefully that helps.... I've been in the collision industry for 20 years on both sides of the fence..Insurance Co and Bodyshop..let me know what becomes of your situation.


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