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Q

I just recently totaled my 2003 Nissan Altima. The insurance adjuster made me an offer of about $13K for the car (actually a lot more than what I was expecting). When I asked if I had the option to keep the car, he said that I did, but that they would pay me a salvage value. The salvage value would calculate out to about 20% less than the initial offer (about $10K). If I keep the car, does that mean that I would receive the car plus $10K? At that point, I would not plan on repairing the vehicle. Instead I would try to sell the vehicle or trade it in at a dealership for as much as I could. If my theory is correct, I would end up making a lot more money off of this then if I had just accepted the initial offer of $13K. Is that true?


A

Your understanding of the settlement is a bit off. If the actual cash value of the vehicle and settlement amount was determined to be $13,000 and you wanted to keep it then salvage value would be deducted from the settlement amount.

Thus if the settlement amount was $13,000 and salvage value is $10,000 then you would be left with the car (which now would have a salvaged title) and $3000. A salvage titled car may be difficult to insure so you might want to search for auto insurance coverage for the vehicle before determining if you will keep the car or not.

To get an auto insurance quote for this or another vehicle you are replacing it with, click here.



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1 Responses to "I just recently totaled my 2003 Nissan Altima. The insurance adjuster made me an offer of about $13K for the car (actually a lot more than what I was expecting). When I asked if I had the option to keep the car, he said that I did, but that they would pay me a salvage value. The salvage value would calculate out to about 20% less than the initial offer (about $10K). If I keep the car, does that mean that I would receive the car plus $10K? At that point, I would not plan on repairing the vehicle. Instead I would try to sell the vehicle or trade it in at a dealership for as much as I could. If my theory is correct, I would end up making a lot more money off of this then if I had just accepted the initial offer of $13K. Is that true?"
  1. Anonymous

    I have never had a wreck in my 37 yrs driving; I totaled my car and I know nothing as to what to expect from my full coverage. State Farm wanted document after document proving the value of my car...I didn't know what documentation to provide and I didn't KNOW that they would calculate the value MINUS my deductible. THANK YOU

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