Anonymous
Anonymous asked in Cars & TransportationInsurance & Registration · 1 decade ago

Can a New York auto insurance company (Allstate) turn my cars title into a salvaged title?

Allstate decided my car was totaled and told me they were not doing anything to the title because the car is more than seven years old. I have heard others say this as well. However, I have been arguing with Allstate about their offer, since they are only offering me 50% for an accident I did not cause, and wish to file a complaint with the New York State Insurance Department.

I wish to get enough money to repair the car myself, which means I need the title to be clean. I am afraid that if I complain to the insurance department, Allstate will give me more money but turn the title into a salvaged title out of spite. This will cause problems trying to re register the car.

Does Allstate have the legal ability to salvage the title even though the car is more than seven years old? Do you think they would do that if I pursued my options to try and get more than 50%?

Update:

Allstate is the other drivers insurance company. My insurance company found me 0% at fault.

I am going by the prices Allstate gave me - they priced it based on similar vehicles in the area. They wish to give me 50% of that value. I've heard stories from other people about Allstate trying to screw them in similar situations and all they did was make a complaint, and they got the full amount in days.

Allstate already told me that I get rid (or keep) the car. Should I assume that this means they won't do anything to the title whether I go after more money (make a complaint) or not?

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  • 1 decade ago
    Favorite Answer

    Salvage Branding of New York State Registered Vehicles

    DMV Commissioner's Regulations require the DMV to mark or "brand" a title certificate if:

    -a vehicle is eight model years old or newer, and

    -the owner indicated that the vehicle was destroyed or received damage of 75% or more of the retail value of the vehicle at the time the damage occurred.

    The owner must mark the box next to the statement on the back of the title certificate to certify the damage. The statement appears on NYS title certificates that display a print date of "12/94" or later. If the title certificate displays a print date earlier than "12/94", the owner must complete form MV-103 (Odometer and Damage Disclosure Statement) and mark the box in the section labeled "Damage Disclosure Statement".

    If you fail to disclose damage, you can pay a maximum fine of $2000, and any additional penalties according to the NYS Penal Law.

    The DMV must examine the vehicle. If the DMV issues a title certificate, the certificate receives a brand that displays: "REBUILT SALVAGE:NY". Get more information about the Salvage Vehicle Examination Program.

    When form MV-907A (Salvage Certificate) is the proof of ownership for a vehicle, the applicant must apply for a title certificate only (see above). The title certificate will display "REBUILT SALVAGE:NY".

    http://www.nysdmv.com/salvage.htm

    Per the DMV website it indicates a vehicle 8 years old or newer, also with the damage at 75% or more the retail value of the car.

    Allstate is offering you 50% of what??? The estimated cost of the damages, replacement cost, the retail value of your car (or book value), or ACV/ fair market value?

    I would not take settlement until you have come to an agreement with Allstate. Try to look up on www.NADA.com what the Actual cash value or fair market value would be. This should get you pretty close to what the insurance company should pay if it is a total loss. It won't be exact, but a guesstimate.

    Good Luck!

    EDIT:

    It sounds like Allstate only wants to offer 50% b/c they feel that their insured is only 1/2 liable for the accident. But your insurance company feels you are not liable at all.

    I would go after Allstate full force!!! Take these steps:

    Call Allstate again and find out if they have accepted FULL liability for their insured... if so, why are they only offering 50%? If you don't get anywhere with that call, ask to talk to a supervisor. If you are not getting anywhere with the supervisor, let the supervisor know that you will be turing them into the Insurance commissioner for unfair claims handling.... see if that helps. If not.... follow through and report them!! Don't just make the threat w/o following through with your actions. Here's a link for NY insurance commissioner:

    http://www.ins.state.ny.us/complhow.htm

    Source(s): Licensed Resident Producer of Property & Casualty Allied Lines
  • 4 years ago

    1

    Source(s): Lowest Auto Insurance Rates - http://AutoInsurance.trustdd.com/?xlnz
  • 1 decade ago

    consult a lawyer I am assuming that whoever caused the accident was insured by allstate? If that is the case then fight them and make them pay either full value of the vehicle or full repair cost. I had a similar situation to this and I ended up getting the insurance company to pay full value after hiring a lawyer

    Source(s): been there
  • 1 decade ago

    A salvage title is made when a car, usually "totaled" by insurance company and sold to wrecker yard, is later repaired; or in cases where a title can NOT be located.

    Is the amount offered 50% of insured value, or 50% of book value?

    If insured for specific amount, and totaled, they should pay THE FULL amount. With book value, it varies with state and company.

    BUT a total loss is not a 50% loss. Your car may not be worth what YOU think it is.

    You could always refuse to settle and sue for full value, naming the other party, their insurance and YOUR insurance as defendants.

    Personally, I would be looking for a new insurance company as well!

    Source(s): experience
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  • Birk
    Lv 6
    4 years ago

    I suggest you to visit this site where onel can get rates from the best companies: http://COVERAGE-FINDER.NET/index.html?src=5YAawK55...

    RE :Can a New York auto insurance company (Allstate) turn my cars title into a salvaged title?

    Allstate decided my car was totaled and told me they were not doing anything to the title because the car is more than seven years old. I have heard others say this as well. However, I have been arguing with Allstate about their offer, since they are only offering me 50% for an accident I did not cause, and wish to file a complaint with the New York State Insurance Department.

    I wish to get enough money to repair the car myself, which means I need the title to be clean. I am afraid that if I complain to the insurance department, Allstate will give me more money but turn the title into a salvaged title out of spite. This will cause problems trying to re register the car.

    Does Allstate have the legal ability to salvage the title even though the car is more than seven years old? Do you think they would do that if I pursued my options to try and get more than 50%?

    Update: Allstate is the other drivers insurance company. My insurance company found me 0% at fault.

    I am going by the prices Allstate gave me - they priced it based on similar vehicles in the area. They wish to give me 50% of that value. I've heard stories from other people about Allstate trying to screw them in similar situations and all they did was make a complaint, and they got the full amount in days.

    Allstate already told me that I get rid (or keep) the car. Should I assume that this means they won't do anything to the title whether I go after more money (make a complaint) or not?

    Follow 6 answers

    Source(s): I suggest you to visit this site where onel can get rates from the best companies: http://COVERAGE-FINDER.NET/index.html?src=5YAawK55...
  • 4 years ago

    Great question, hope people can give some insightful answers

  • 4 years ago

    what a good question

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