Questions for the board's insurance experts. Older daily driver got hit

Last week, I was driving through a fast food parking lot, and someone backed into me.  It was one of those situations where I was already behind them, saw their backup lights come on, pressed the gas to try to get clear before they hit me, and almost made it.  Very low speed hit on my passenger rear quarter. 

I started the insurance claim procedure against the other driver's policy, and I don't think they are disputing what happened.  We both have the same insurance company.  They asked me to go to one of their approved shops for an estimate, and I did that today.  The estimate came to just a hair over $1500, although the estimator said the insurance company would be looking over the estimate and may make some adjustments to it.  This is where I start getting concerned.  If the insurance company decides to cover the repair, I'm happy.  I'm wondering what happens if they decide the car is not worth repairing.  It's is a 2001 Lexus GS430 with almost 275K miles on it.  It's in very nice running condition, and relatively clean(especially the interior), but does have some rust through on the same fender that was hit, and being high miles, it's not perfect.

So, what happens and what should I do if it goes over whatever limit they put on it?  I'd like to keep it, at least for now, and would prefer not to have to take it to be inspected, so I'm hoping the title doesn't get branded for something this small.  Is this some situation where I'd be able to take a reduced settlement in order to keep the car?  If it makes a difference, I'm in Ohio.

Carli got hit in a car that was worth around $900.  They wrote up estimate for $890 and said if i wanted it repaired by a shop they would total it.  If i wanted to keep the car and do the repair myself they would, and did, cut me the $890 check.  This was progressive.  I was paid within 4 hours of the accident, on a car i had paid $900 for a few weeks earlier.  That’s my Ohio experience 

In reply to Patrick :

Outside of it just getting fixed, that sounds about as ideal of an outcome as possible, as long as no one got hurt.

My experience is that if you make it clear you want to keep it they will send you a check made out right to you for a somewhat reduced value but a high enough value that you're happy to take the money and go away. 

I had a '00 Focus that got a rear bumper tap that resulted in $1,500 dollars paid to me.  I never fixed the scratches in the plastic bumper or cracked rear lights.  

If they total it and you buy it back it will have a salvage title, get it inspected and your good to go again (it will have a branded title) 

Wait and see is my advise.  What is your car worth?  You should know that.  With that knowledge in your head wait and se what they come back with.  You may be pleasantly surprised.  

I just looked at NADA and Clean retail with the millage adjustment in my area this car is worth $4,800 so even at $1500 I don't think that will be a total.  If you tack on rental car for a month or more then it could get close maybe.

At $1500, I don't think it's totaled.

But if it is, what happens will depend on Ohio law, and I don't have my state by state reference guide in front of me.  For the most part, if they decide to go "by the book", then yes if you want to retain it you'd have to flip the title (again depending on state law).  Or they could be nice and cut you a break and just issue payment, perhaps in exchange for some kind of release.

Tell the insurance company that you have a body shop that you like to work with. They, in my experience, will cut you a check for the amount that their shop appraises the damage at. I had this done twice for roughly $1,500 each on a Miata that was worth probably 2500. (Two different people hit me a couple of years apart causing damage similar to what you have there). The car was never deemed salvaged in either case. 

Ideally, it just gets fixed.  If the value is high enough for that to be what happens, I’m happy.  Failing that, I want to make sure the car is still in my possession and road legal.

typically a car gets totaled when the damage exceeds 70% of it's value.  You can argue with most insurance companies about the value, usually they will listen, farmers does not.  You can also say how much is the max amount that keeps it from getting totaled and accept that amount.   The branding of title is also affected by local laws, Illinois and Wisconsin don't brand titles on cars over 10 years old.

dean1484 said:

Wait and see is my advise.  What is your car worth?  You should know that.  With that knowledge in your head wait and se what they come back with.  You may be pleasantly surprised.  

I just looked at NADA and Clean retail with the millage adjustment in my area this car is worth $4,800 so even at $1500 I don't think that will be a total.  If you tack on rental car for a month or more then it could get close maybe.

 

 

 

 

Looks like your valuation must have been close to what the insurance company's was.  Just got a call that the claim is covered, and I can make an appointment with the body shop.  I'll give them a call and get the repair scheduled.  I'd assume there is no way this is gonna take a month, so the rental shouldn't knock it over the value of the car.

Thanks for comments everyone, I'm glad its just going to get fixed.

Let it play out and see how it goes.  I got whacked pretty good in a 4-Runner, in NY you can be held up to 30% liable unless the car is parked and no one is in it.  I whittled them down to 20% but it's a big nut for something not my fault.

Good luck.

In reply to 914Driver :

From talking to the adjuster, they're covering the whole thing, so should be no money out of my pocket.

If it ends up being ruled the other person's fault, you shouldn't pay anything out of pocket.

I'm sure states and companies might all be a bit different, but here is my feeble understanding from my experience with all my low-value cars:

Most states, the law is that you have the right to your choice of repair facilities which is interpreted to include both yourself and/or not doing it at all.  I had a 95 F250 that was hit twice with very minor damage and was broken into for the stereo once.  In total, I collected about $3000 for those three claims and only spent $40 on a junkyard radio.  I just drove it with a bent rear bumper and a basketball-sized dent in the door.

You should have the option to collect a repair check and do as you please.  They might want to convince you to do otherwise, but you should have the legal right to just take the money.

If the cost of the repairs exceeds about 80-85% of the car's value, they will likely total it and offer you a pretty wimpy buyout price.  At that point you have a couple options.  You can deny the claim (pretend it never happened) and you get nothing, or simply ask them what the buyback value is and make your choice; A- surrender the car and title and take the money, or B- accept a check minus the buyback value and keep the car with a branded title.  My wife's Tercel got a bunch of hail damage one summer.  It had full coverage (not sure why I did that on a $3000 car) and they said they were going to total it.  They offered me $2800, and buyback was $500.  No brainer for me.  I took a check for $2300 (payout minus buyback) and she drove a golf ball with an R title for two more years.  It was worthless anyway, and I was able to drop the full coverage and not care.  Two years later when she hit a retread on the highway and spun into a concrete wall, I met her at the scene with the title and handed it to the tow truck driver.  Buh bye Tercel.

Similar story, my Impala SS was hit several years ago.  A guy backed into my front fender and door.  I took a check for $2100 and spent $300 of it on a junkyard fender and door and the remaining $1800 bought me a nice used motorcycle.

Such a bummer; it's interesting to think about all the life that car's had, 275,000 miles, and then some dipE36 M3 backs into it.

If you're at all on the fence about keeping the car, I would consider just taking the check and not fixing it. I understand if you just want it fixed, though. You'd probably net more selling it dented and keeping $1500 than selling it without the dent. If it's worth $2500 without the dent and $2000 with it, you're up $1000 selling it dented. But driving a car with body damage can be a bit disheartening, so if you're keeping it, get it fixed! :-)

In reply to 914Driver :

Never heard of that.   Never got charged anything.

dculberson said:

Such a bummer; it's interesting to think about all the life that car's had, 275,000 miles, and then some dipE36 M3 backs into it.

If you're at all on the fence about keeping the car, I would consider just taking the check and not fixing it. I understand if you just want it fixed, though. You'd probably net more selling it dented and keeping $1500 than selling it without the dent. If it's worth $2500 without the dent and $2000 with it, you're up $1000 selling it dented. But driving a car with body damage can be a bit disheartening, so if you're keeping it, get it fixed! :-)

I'm a bit on the fence (as shown by the other thread), but frankly am trying to convince myself to be reasonable, and stay out of debt, so I've already got an appointment set up for getting the car fixed.  It goes to the body shop in a week.  I know it wasn't perfect before the accident, and it won't be afterwards, but it'll be nice to be driving it around without the dent in it, even if I'd be money ahead by just asking for a check.  Maybe this'll be the thing that pushes me to just go ahead and keep the current fleet the way it is right now, instead of selling almost everything and starting over.