Quote:
Originally Posted by pmax
Say for example, car is worth $100k and insured for agreed value $20k. So any loss less than $15k is covered. Any more results in a possible total in which case the owner can simply refuse the offer and be out $15k or whatever the repair costs are, is that it ?
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I would only be guessing and using personal experience in that scenario. What I think would happen is that the ins co would give you the 20K and take the car to sell to a salvage yard. Of course you can arrange to buy it as stated in a previous post. They will simply deduct the salvage value from your settlement.
So to sum it up, 70% plus the salvage value justifies them cutting off the damage payment at a certain percentage. And if you know the collision business you know that the estimate usually goes up after the work is started and concealed damage is revealed. If the damage estimate is 50% of the value of the car, they can absorb some additional cost.
To further the point, they value a vehicle at wholesale rather than retail unless you have that agreed value.
If I were to answer your original question, I would answer yes. And if I was in that position, I'd increase the agreed value accordingly.