Re: Help with insurance appraisal

[TCame86712@aol.com]

In a message dated 97-05-30 14:39:12 EDT, you write:

> 
>  They give you the salvage for free right?  After all, it the car has no
>  value the carrier wouldn't feel right charging you would it? 
>  
Actually, the salvage does have some value. The insurance company will sell
it as a piece of salvage at an auction. As the current owner, they give you
the option to keep it, and they'll deduct the salvage value from the actual
cash value, and pay you that amount. Again, this is all how it works if the
car's totalled. Here's an example of what you might get, using imaginary
numbers.

If the insurance company keeps your car:

Actual Cash Value (vehicle value)...........2000.00
Sales tax (7.75% here in San Diego).........155.00
Remaining registration, pro-rated................50.00
Total cash in your pocket.....................$2205.00

I don't know where you live, but in California we pay the remaining
registration, pro-rated from what was paid for the year. Example, $120.00 to
register the car from June 97 to June 98. Car is totalled in December, after
only 6 months of the registration is used. We pay $60.00 for the remaining 6
months that weren't used.

If you retain salvage:

Actual Cash Value................................2000.00
Less salvage value (usually 20% or less)..-400.00
Total cash in your pocket......................1600.00

The reality of the salvage situation is that the insurance company would
probably prefer you keep the car. They have to pay a fee to the auction
company, plus they have to keep the claim file open until the car clears the
auction and they get the check for it. This is usually at least a month. If
you retain the salvage it's less work for them and they can close out the
claim earlier.

Hope that helps!

Todd
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