I have an 05 1500 with 290k on it. Had the engine rebuilt less than a month before the vehicle was involved in an accident. Now insurance is totalling the vehicle. I had forwarded all receipts to the adjuster regarding the rebuilt engine, mileage, and length of time running prior to the accident. After consideration the adjuster only increased the payout by $700 from the original offer. The engine rebuilt cost was $7k! Should insurance cover more than just 10% of the costs as this engine now has a 12 month/12,000 mile warranty to which no vehicle is comparable to that?
Insurance totaled truck with rebuilt engine, is it worth more?
byu/Curious_Spot_5176 inInsurance
Posted by Curious_Spot_5176
9 Comments
$700 is about right. Refurbishments will usually bring 10-15%. Sucks but no one is willing to spend $7k more for a vehicle because it has a new motor.
The actual cash value is based off of what people are willing to pay for a vehicle not the money you’ve invested into it.
As far as insurers are concerned, a new engine isn’t an upgrade as much as it is maintenance. Their pricing is based off of an operational engine and nothing more.
As far as people’s willingness to buy it…well, I myself am wary of a rebuilt engine. I don’t know who did it or the quality of their work. And, of course, the rest of the car is still old. I’d rather not buy a car with a rebuilt engine unless the shop has a warranty that last as long as I plan on owning it.
Nope. You aren’t owed 100% reimbursement for a rebuilt engine that you chose to purchase and have installed in your vehicle. The engine is necessary for the vehicle to work, and it did increase the value of your vehicle a bit. Just not as much as you were hoping for.
I don’t have the answer but here to see what people have to say. That’s a big oof. Good luck.
In general tho. The cost to rebuild an engine doesn’t increase the value of a car. If you buy a $20k sports car and spend $10k rebuilding the engine for more horsepower. It’s still a $20k sports car. So insurance wouldn’t really pay you more than the car is worth.
I’ve always heard that insurance would pay out for things done recently before an accident tho. I had my tint replaced on my window covered by insurance when my windshield broke because I had it done like 3 months prior. But that was $300 not $7k
It’s a rebuilt engine not new and even then you won’t get dollar for dollar amount.
Look at it this way. You are being paid for a truck in good condition. With the old engine you would be paid for its salvage value.
You have the option to keep the truck for its ACV less salvage value and then either repair it with some of your own money for the shortfall or take the engine out and put it another truck that needs a rebuilt engine.
You should see if you can buy it from the company for cheap and take the payout instead of totalling it and fix it if you want to keep it.
Not worth anything more. Best bet is to pull engine and buy another cheap truck to put it in.
>this engine now has a 12 month/12,000 mile warranty to which no vehicle is comparable to that?
And what happens 13 months from now when the warranty expires? Is it transferable? How much of the 7k cost was part vs labor?
I think you vastly overestimate the value of the engine to the next owner. The truck has to have a working engine. Otherwise you would only be paid the scap value.