Buy back of totaled truck

Had a interior fire in my 1995 f-250 pickup everything is going good with farm bureau insurance adjuster totaled for a fair value rated excellent at 10,495 but by back was 3,595 with is 34% plus which I think is high.

They said they would give me 6,800
Now the question is how do they decide the percentage for the buy back? Our should I tell them to fix it?

I did donate Thanks Gary

Michigan


Answer

Hello Gary, and I am sorry for the delay. I was double checking couple of things about total losses in Michigan.

They buy back (called salvage) is determined by an estimation of what the insurance company believes the can sell the vehicle at an auction. It is very subjective, because they will look to see what COPART (the company that usually deals with salvage vehicles and who actions them out), think they can get.

Many times they give you an amount and sell it for more than they told you. Almost no one goes back and ask to see where the insurance company sold the vehicle or what the actual cost of the action was.

There are those cases were the insurance company losses money because they give you a high value, but sell the car/truck for close to nothing. In my experience, however, insurance companies make more money out of the deal that most consumers would really like to know.

If you believe the salvage is too high, then you are better off to sell it to them. Let them take the hit. On the other hand, if you believe that you can beat $3,595 either by fixing it (which is unlikely with a fire claim) or by selling the vehicle by pieces or by weight, you might want to keep it (this is especially true if you have a canopy and/or a good bed that you can sell. Point out those two items (what is the market price for those items) and the insurance company should lean your way.

Remember that total loss is a complete negotiation in all aspects, even if they tell you that it is not. You can negotiate with a better price for the buy back (3,595 for a burn car is kind of high).

Regarding the fixing of the vehicle, you cannot really tell them to do that. Michigan will not let them fix a car that is deemed a total loss. You can do this and have a bad title (salvage title) if you are able to show that the car is safe for the road, but insurance companies cannot be forced or compelled to fix it.

The only way you can fight this is by arguing that the value of your truck is higher than they evaluated and/or that the salvage or buy back amount they are giving you is not accurate.

I hope this helps,
Good Luck