Insurance

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guys - when a car is totaled and insurance pays out (weather damage and older car), are you required to sell the car or can you keep using it and keep the car on the same insurance policy too? It's definitely not unsafe to drive but it's such an old car that insurance is giving me the option to total it (a higher payout than if not)

Thx

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If the insurance totals the car, they will own the car. they may give you the option to buy the car back from them for a small amount.

soundtechie said:   If the insurance totals the car, they will own the car. they may give you the option to buy the car back from them for a small amount.
  That car will be required to have a branded/rebuilt title and go through an inspection process before it can be driven on the road again.

Your insurance company may be able to choose not to insure it -- that would be up to your insurance contract and state law.

ok so when they total a car, they actually pay to take the car away as well and drive to their lot or tow it away right?


stanolshefski said:   
soundtechie said:   If the insurance totals the car, they will own the car. they may give you the option to buy the car back from them for a small amount.
  That car will be required to have a branded/rebuilt title and go through an inspection process before it can be driven on the road again.

  
An insurance company totaled my car once, and said they'd give me $3000 for it's full value (I had bought it for $2,700 only a month prior so I was extremely happy). A friend asked me if he could buy it. I asked insurance how much it would be if I bought it back. They said $1000. Friend said, "Deal!" I told the insurance company that I wanted it back, so they cut me a check for $2000 instead of $3000 and they washed their hands of the thing. I went to the tow lot with my friend, he gave me $1000, I signed over the title, and he trailered it out of there. The insurance company never touched the title and the state safety inspection was still valid until the original expiration date. Except for the guy who hit me, everyone was happy with that transaction!

This was all back in 2005. Not sure if the law has changed since then that requires a salvage title in this situation. Whether the title changes should be a major consideration.

stanolshefski said:   and go through an inspection process before it can be driven on the road again.state-dependent



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