If your car has a salvage title and is totalledstolen will the insurance company still pay blue book value?

Answer 1

The insurance company is required to pay the actual cash value (normally) of the vehicle prior to the loss. Get prepared to document what your vehicle is worth with a salvage instead of a clean title. Don't expect to get more for the vehicle than you piad for it. Don't expect much at all if the salvage title was given after another insurance company already totaled the vehicle. Honestly - unless this was specifically addressed when you tried to buy comprehensive cover on a salavaged title vehicle, you are going down the road to a "bad faith" claim against an insurance company. (Arguement being - insured was charged full comprehensive rate for the vehicle in question based on value of a clean title, then when a covered total loss is presented, company pays value on a different basis) Check with a lawyer. If at all possible, try to address this when placing coverage, not at the time of a loss. Mark Walters, ARM AAI