A year ago I moved out of the country and left my car to a friend for the time being. My friend got insurance on her name and had been driving the car since. Last month she got in an accident deemed the other car’s fault and their insurance was supposed to pay for repairs. After assessing the car’s condition they determined that: “the damage to the vehicle is over the value of the vehicle. We will not be repairing the vehicle. We will be “buying” the car from you” (their words). The car is paid off (no lien). They haven’t given me an estimate of how much money they’re willing to offer yet.
The car is a Hyundai Veloster 2013, originally bought with 82k mileage and brand new engine for $9000.
I have a few questions:
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Is it common practice for insurance companies to offer to “buy a car from you”?
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Can I refuse? And if so, are they obligated to pay for repairs?
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Is there any room for negotiations? That is, if they offer me $5k, can I refuse and request more?
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How much am I to expect, in terms of percentage of market value for a similar car?
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Does it matter that the person driving and insured (my friend) is not in the title? If I’m in the title, would they send the money to me?
I’ve tried googling this but all I can find is articles about “buy backs”, which is the opposite of my situation if I understand all of this correctly. I’ve never dealt with insurance companies and I feel out of my depth here. Any help appreciated!
State: Illinois
Insurance company is offering to buy car from me after accident
byu/No_Instruction_191 inInsurance
Posted by No_Instruction_191
2 Comments
They are totaling your car. Search “car was totaled” on Google. Essentially, it costs more to repair than it is worth. They will give you the amount the car is worth, and keep the car
Your car is a total loss.
Yes total losses are what happens when the cost to repair exceeds the value or a state mandated threshold is reached.
No
They will have a valuation report. You can review it for accuracy and challenge inaccurate information. But you can’t just say I want more.
You get the acv. No dealer market up or the like.
You’re the registered owner. So the money should go to you but I’m fuzzy on how your friend has an insurable interest in the car. You should read the contract.