Depending on the extent of the damage and your vehicle's value, a car accident could result in your insurance company "totaling" the car. Insurance companies typically total out vehicles that would cost more to repair than to replace. In the case of older cars or cheaper vehicle models, your insurance company could total your car when the vehicle itself sustained minor damage and is still functional. Should this occur, you can negotiate with your insurance provider and attempt to buy back your car.
Legal Owner
When an insurance company totals your car, the company sends you a check for the car's estimated value minus any wear and tear or previous damage. If you still owe money to your auto lender, it's your responsibility to use the insurance money to pay off the damaged vehicle. Unfortunately, paying off the car doesn't mean that you'll automatically get your damaged vehicle back. The lien holder has the title to your car, but the insurance company has the actual vehicle.
Insurance Company Negotiations
If you want to keep your car after an accident rather than taking the money the insurance company provides to pay off your loan or put a down payment on a new car, contact your insurance provider as soon as possible and explain your desire to keep your car. The insurance company may sell you your vehicle for the price it would have otherwise charged a salvage yard. Although many consumers have successfully bought back their totaled vehicles from the insurance company, your insurance provider has the right to refuse to sell you your car back after an accident.
Keeping the Car
In order to avoid the possibility that your insurance company will refuse your request to buy back your car, consider working with your insurance provider to avoid having your vehicle classified as a total loss. Insurance company policies vary, but if you find a repair shop that can fix your car for less than the replacement value, your insurance company may rethink classifying the vehicle as a loss. If you insure all of your vehicles and your home with the same insurance company, threatening to switch providers could give your insurance company the incentive it needs to work with you and repair your car, rather than totaling it.
Buying at Auction
If your insurance company has already totaled your car and refuses to sell it to you, it will often run the car through an auction. Consumers and car dealers can then bid on the car in an attempt to purchase it. Ask your insurance provider where and when it plans to auction the car. Keep in mind, however, that while no law prevents you from buying back your previously totaled car at auction, not all car auctions are open to the public. Some auctions are for dealers only. Should you succeed in purchasing your car at auction, your insurance company is not responsible for the vehicle's repair costs. You must bear the burden of repairs on your own.
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