911 Insurance question.. How to insure a car that was previously "totaled"?

[Makoshark72]

Not technical, but maybe somebody can help....

2 years ago my '79 911SC got rear-ended, right rear body damage only. My insurance company, USAA, decided to total the car (with a value of $8700, which I fought and lost)

I found out that in Washington State, if your car is older than 20 yrs, and it gets totaled, and you decide to keep it and repair it, you get a CLEAN title, not salvage, not rebuilt, not branded...

So...I bought the car back from USAA for $700! Yea I was amazed at that low number! And, I have the clear, unbranded title in hand.

Now the car is all done, totally repaired, complete paint job, restored interior, etc... It is my son's daily driver (he owns the car).

Question...best way to insure it?

Here's the problem... USAA considers it "salvaged" EVEN THOUGH the title does not reflect that. If we put FULL COVERAGE insurance on it, and it gets "totaled" again", they will only pay the value of the car MINUS the $8700 already paid out 2 years ago.. So that won't work. USAA said to insure it for liability only, not feeling good about that either!!

My experience with classic policies is that there are many restrictions, as to limited mileage, garage, etc..

Suppose he could insure it with a different company, in that he has a clean title.

Any suggestions or experience?? Any insurance guys out there??

Thanks,

Rob

[yelcab1]

His car, his title, start with another insurance company for a clean slate

[RedCoupe]

I'm an insurance agent, but not in Washington, so I'm not speaking "officially". There is a company called Lexis Nexis that acts a repository for insurance information, and virtually all insurance companies report to this company and use their reports. When your son applies to an insurance company for insurance on this car, what will come up in a report depends on how USAA reported the accident. I recommend that your son seek out a local agent, and tell him the whole story, even showing him the car and the clean title. Even if the LN report shows a total loss, if the agent presents copies of the title and pictures of all sides of the car to the insurance company's underwriters, they should be able to override the report and approve the policy as a full valued car. When you work with a direct writing insurance company that doesn't use local agents you might meet more frustration. Your son might want to interview a few insurance agents to find the one he feels that he can work with most easily.

[Driver_X]

I would also contact the local PCA region as the PCA can assist is determining the value of a particular car. Provide that information to USAA and see what they say.

[wildthing]

Get classic car insurance with a generous mileage allowance. I had a similar issue with GEICO... Repair estimate was within 70% of their assessed value, paid me that amount and would not insure for comprehensive coverage anymore, although still technically clean title.

[triplenet]

If there is no loan, go with Liability at high coverage.
It's called self insurance. Has worked for me for 30+ yrs. (Unless you live in a crazy area (I don't and haven't)). Even if I lost one, I'm way ahead on the savings.

[scottrx7tt]

I have insured rebuilt title vehicles before with State Farm, and it has never been in issue.

[RedCoupe]

"Get classic car insurance with a generous mileage allowance." If the car is used by his son as a daily driver as the OP said, this is not a good idea. Classic car insurance is great, but has restrictions such as not used for commuting, shopping, etc. Some Classic car policies say the car is to be only used for club events and testing. If the OP's son has a claim while using the car as a daily driver, it might not be paid and the policy would likely be cancelled.

[bpu699]

Interesting thread. I always wondered how this works...

If you have a car with a clean title, insure it, and then damage it. What happens if it turns out that the car had been totaled in the past?

Can the insurance use that to decline repairs? Or, are they responsible since they agreed to insure it? Can they then pay out much less, even though they charged full premiums?

There's a lot of cars out there with clean titles and prior history of being totaled.

[RedCoupe]

Interesting thread. I always wondered how this works...

If you have a car with a clean title, insure it, and then damage it. What happens if it turns out that the car had been totaled in the past?

Can the insurance use that to decline repairs? Or, are they responsible since they agreed to insure it? Can they then pay out much less, even though they charged full premiums?

There's a lot of cars out there with clean titles and prior history of being totaled.

Put the burden of proof on the insurance company by having pictures and an inspection on file. That makes it difficult for them to pay less than fair market value. Also, you should document all upgrades and additions, even if you have to pay for the increased coverage.

[Makoshark72]

Thanks for all the replies, some good ideas.

We (he) will tackle it his week.

Thanks again!

Rob