Salvage - Need info! Kinda' Urgent

[bkgiii]

Well, here's an interesting post-Katrina question for y'all:

I was able to make it by my AUto Claim center to report minor exterior damage to the LX (pine cones and limbs blowing against it dinged it up a little, plus the bumper incident..another story...)....Anyway, I showed them the minor finish damage, and they asked had I had any water in the vehicle (from the storm). I told them the carpet padding on the drivers side front was moist from water, and told them it was likely from the drain plug on that side being out.

They want to 'TOTAL' the vehicle, saying they were instructed that ANY vehicle which had water in it during Katrina was to be totaled, as they did not want the liability later on (presumably salt water intrusion / electrical / mold....I dunno'). They also said that in addition to the payment for the loss, I could keep the vehicle....not buy it back...but KEEP it. Talking with my agent, he said I could continue to insure it, but that the 'limits' of coverage (for comp / collision) would be the established salvage value, and it would be titled as a salvaged vehicle until such time as it was inspected and released.

My questions are these:

1. What's the downside to allowing them 'total' it, other than resale assuming I do NOT clear the 'salvage' designation?
2. Am I missing something about their claim adjudication?
3. Anyone know a 'salvage value' of the '96 LX450?
4. Assuming I indeed am going to retain the vehicle, what is the most immediate PM i need to perform given driving through water that was just about to the bottom of my door sill?
5. What OTHET questions do I need to be asking?

 

[ginericLC]

Change all the fluids. I'd pull the interior out and let it dry out completely too. See what numbers they want to give you for totalling it. I have a feeling the insurance companies are willing to work on this because their insurance is bailing them out big time on this national disaster. The vehicle will be worth almost nothing on resale with a salvage title. But if you are getting money for it being totalled out now who cares.

 

[cruiserdan]

If you plan to keep the vehicle until the wheels fall of then a salvage title is prolly not that big a deal. I'm not sure how they could "total" it unless ownership was transfered to then and then back to you. Didn't that big jug of water in the back tip over when you hit that bump?...

 

[e9999]

if what they give you is a reasonably close approx of real market value, you can't lose!

of course, if it's worth $10K and they give you $5K and you can only sell it as salvaged for $2K, then it's no good...

 

[sleeoffroad]

let me see, they pay for your truck, you keep it, no damage that could come and bite you. I say it is a win win all the way. I would say take it, it makes up for some of the stuff you guys had to go through.

 

[Junk]

Sounds like no downside to me. They pay you for the truck and you keep it. Who cares if it's totaled. I'd frickin hack the crap out of it and have some fun.

 

[Tentsontop]

Former State Farm NatCat estimator

Let them total it. It's fast and easy as long as you have your title in hand. You'll get a high resale value on it minus ded/salvage value (which should be about 3K for your rig). It's a win/win even if you decide to sell it later. Don't let anyone shake your tree about the "zero resale value" nonsense. You're looking at walking away with as much as 9K in your pocket depending on the condition of your ride and your ded.

 

[CharlieS]

Seems a bit dishonest though doesn't it?

Charlie

 

[Spydaz]

Go with it. You cannot loose a thing. Take that money and spend it wisely. MODS!!!!

 

[bkgiii]

The figure they quoted to total it was 15,764..Net.

 

[cruiserdan]

How is it that you would get 15 grand AND the LX?


There has GOT to be a catch someplace.......

 

[Junk]

Seems a bit dishonest though doesn't it?

Charlie

uh, no. It's a bad business decision the insurance company is making.

 

[bkgiii]

How is it that you would get 15 grand AND the LX?


There has GOT to be a catch someplace.......

That's what I'M thinking , too.........particularly since KBB shows a 13,466 retail value.

hmmmmm............I feel and ARB or two coming, And I AM keeping it until it falls apart.

 

[davegonz]

How is it that you would get 15 grand AND the LX?


There has GOT to be a catch someplace.......

Taxes??

 

[Spydaz]

Yeah big time. Well GO DO IT!!!! Thats plain insane on there part.

 

[Dansan]

As you or someone else pointed out, after it gets a salvage title, it could only be insured up to the salvage value. I'm not sure that's as high as $3 grand, but others may know better.

In any event, be careful about larding it with expensive mods because if it is stolen or hit and even if someone else is at fault, it will be totalled for the salvage value.

If it were my vehicle, I'd certainly take the cash but I'm not sure about the wisdom of puting anything into it other than to keep it running.

 

[Rookie2]

I wouldn't even insure it for salvage value. You've gotten your big payday from the insurance company, why start giving the money back to them. Pay down your house mortgage or any high interest debt and by the time your 80 kicks the bucket, the value you've got out of that 15 grand will be closer to 20 - 25 grand.

 

[landtank]

Hope you remembered to tell them that your best friend from the Boston area was down visiting that week and would like to get this paper work going ASAP on his totalled truck, but has already flat bedded the truck home.

 

[MLX450]

Do IT !!! Just Do IT !!! lol..... Hell yeah i'd do it in a heartbeat.... Now call Christo and order a Slee 6" Lift Kit !

 

[MoJ]

How is it that you would get 15 grand AND the LX?


There has GOT to be a catch someplace.......

Note to self: Drive in the direction of the hurricane.