Insurance question...

Rick Lee · Rick Lee's Garage

As some of you know, I had a severe "off-track-excursion" last weekend. Initial estimate from Euro Pros is $22k to make it perfect. I believe they can do it, as I've heard they are miracle workers. But when I spoke with them, they had not even put the car on a lift and it turns out a puddle has developed under my car. So engine/tranny work may be needed too. I have my car track-insured for $45k with a $6k deductible. At what point will they decide to total it out?

And it they do total it out, how much could I buy it back for? If 20% of $45k, I'm sure I can part out the car and make plenty doing so, even covering rented storage space while the car is torn apart. Thank God I put my 996 5-spoke wheels into storage and wrecked the car with a $375 set of track wheels. But if I get another 993, I really want to keep my Big Reds, split grill and Bilstein HD's. The rest can be sold off. What do you guys think?

competentone · 10-07-2004, 12:02 PM

You have it insured for $45K, or is that "up to $45K"? Is the $45K the "fair value" of the vehicle? Will they require another repair quote or will they accept the estimate you've already received?

There could be a lot of other variables.

Best thing I'd say, is that you look for answers from the agent you bought your insurance from--he/she will probably be in a better position to know how the specific company you're dealing with works these issues.

That said, they probably won't want the car--to them it is just a "dollars and cents" issue with their value on a "totalled" car being the wholesale salvage value; if you know what you can reasonably make parting it out, you can probably do well by negotiating to keep the car.

Rick Lee · Rick Lee's Garage

I have it insured for $45k, which means, in the event of a total loss, they'd pay that minus my deductible. I just wonder what it takes to get to a total loss.

widebody911 · widebody911's Garage

Who are you insured through? I have American Collectors, and I just bumped my policy up to $45k, which brings my deductible up to somewhere between 6k and 7k.

As an aside, what's the point of a deductible? Why not just write the policy for less and eliminate the fudge-factor?

Rick Lee · Rick Lee's Garage

I have it through LaurelDE. What's the standard cut-off for totalling a car? 50% of value? 75% of value? 101% of value?

Mookster · Mookster's Garage

Total loss def: cost of repairs exceeds value of the vehicle.

For practiple purposes, total losses are determined when the damages are 70-80% of the vehicle's value. This range is sometimes mandated by the individual states.

When the damages get in the 70-80% of value range the insurance companies feel like they are throwing good money at a bad issue. In reality it's cheaper to pay the total loss value, avoid unforseen supplements (additional damages, parts increases, prolonged rental...) and sell the salvage for a fair sum.

Besides, if the damages were at the 80% to value range, would you want the vehicle repaired? (Think average Joe with limited repair shop resources).

Back to the damages known at this time; my suggestion is to have you insurance company have the vehicle torn down to expose questionable items prior to comitting to the complete repair. Assuming the $22k estimate is firm, there is lots of room for movement and supplements.

Good Luck.

Jim Richards · 10-07-2004, 06:42 PM

What's a guy like RL typically have to pay to buy back his salvaged car from the insurance company, assuming they do total it?

anthony · 10-07-2004, 06:53 PM

Quote:

As an aside, what's the point of a deductible? Why not just write the policy for less and eliminate the fudge-factor?

The deductible lowers the amount of claims they pay out. Most damage probably costs less than $6000 so 98% of the time the insured will be paying for the repair.

unclebilly · unclebilly's Garage

The write off percentage typically depends on a few things...

They look at what the cheapest thing is from their point. If their payout is $39k ($45 - $6k deductible) and the salvage is worth $15k, the claim is only costing them $24k.

If there's $22.5k in damages, before any hidden damage is found, it could go either way.

If the salvage value is more or less than $15k, that will push it one way or the other. If you want the car written off, I'd be sure to let your insurance co know about the oil leak and the potential for hidden damage co$ts.

Mookster · Mookster's Garage

The salvage on this one is tricky. If your car has lots of mods it could bring worth more then normal. If the car is stock, not as much.

What is normal salvage on this niche' vehicle? I may suggest 10-20% of value is what the salvage may bring. Check with some of the more known salvage yards (Parts Heaven, DC Automotive...) they may be able to give you a better idea if you wish to "owner retain" the salvage, if it gets that far.

Re deductibles and premium:

The ded is the amount you assume in the event of payment for a covered loss. The amount of the ded impacts your out of pocket cost and the coll/comp premium charged. The higher the deductible the lower amount in coll/comp premium you pay. PLEASE compare deductibles when you get an insurnance quote ($100, $245 $500 $1000...). Sometimes the premium $$$ saved is chump change.

Liability premium is not sensitve to ded for most personal auto policies. Typically personal auto policies do not have liability deductibles. Your premium is based on the amount of coverage you purchase and your exposure to the ins company (good drivers vs. bad drivers. This can be defined as you wish).

Good luck with your settlement.

Par911 · 10-08-2004, 04:55 AM

Quote:

What's a guy like RL typically have to pay to buy back his salvaged car from the insurance company, assuming they do total it?

Jim, I know in Tim's case when he wrecked his 964, he took it to HBL for an estimate. They classified it as totaled and offered for him to buy it back for $4K. I would assume that if RL's insurance company does say the 993 is totaled then the buy back price would probably be in the $5,000-7,000 range.

Rick Lee · Rick Lee's Garage

Thanks guys. After a long phone chat last night with a Pelicanhead, it sounds like I can either have it totalled, buy it back cheap and have it fixed cheap for cash, or I just part it out and try to make some money on that. I need to have that leak diagnosed very well. If it's just a pinched line, then I can probably unload the engine for almost what I could buy the salvage for. The rest would be gravy, assuming I could make more profit each month than the rent on the storage space costs me. I dunno if I could bear to keep the car and pick away at her like a buzzard, every time someone needed a part. And it would be a considerable time investment, that might take away from my search for another Porsche(s).

VincentVega · 10-08-2004, 06:11 AM

22k?!? Wow, I never would have guessed that. Best of luck with it RL. If you need anything let me know.

Rick Lee · Rick Lee's Garage

Thanks Chris. Take me for a ride in your SC sometime. I will be Porscheless for quite a while it seems. Just got the call and it looks like they're gonna fix it. Will know for sure on Monday.

}{arlequin · }{arlequin's Garage

So is it the tub that's bent? With that estimate is sure seems like it. That crease wasn't that big but maybe that's what it signifies.

Doug E · 10-08-2004, 06:03 PM

Holy cow, $22k ???? I don't think any of us last weekend would have guessed that much.

Sorry to hear the news RL but knowing you, I'm sure somehow you are going to come out ahead on this one

Good luck with the insurance company and keep us posted. I know my SC is no 993 but if you are ever out this way and need/want a quick fix give me a call ...