Is this illegal: I get paid full cash value for my car and instead of junking it I trade it in?
My car was rear ended and damage exceeds the value of the vehicle.
Other insurance company will pay me full cash value which is around $5000. After they pay me, I want to trade the car in and get the $4500 Cash 4 Clunkers voucher from the government. It qualifies cause it is still driveable as the only damage were the bumpers are crushed in and costly to fix.
Is this legal to do or will the insurance company find out and demand their $5000 back?
Few years ago, someone ran a red light and totalled my car. Their insurance company did not take the car and I sold it to junk yard and kept the money.
So I don't think that's true that they come get it.
- oklatomLv 71 decade agoFavorite Answer
Once your car is declared a total, it belongs to the insurance company. If they neglected once to come and pick it up, and you junked it, that was an error on their part.
Usually they will make arrangements to have the car towed to a salvage yard where they will sell parts off it to try and recoup some of their loss.
Sometimes you can buy it back from the insurance company for salvage value. If they allow that, and you opt to do that, you will keep the car, but be issued a salvage title. There is no way around the salvage title.
If your car qualifies for the Car Allowance Rebate System (CARS) you could use it to trade for a new car. That assumes that it is less than 25 years old, got less than 18 miles per gallon when new, and has been continuously registered and insured by you for at least a year.
I don't see anything that says you can't use a car with a salvage title, but you might call the hot-line at (866) CAR-7861 and ask, just to be sure.
- 1 decade ago
When an insurance company "totals out" a vehicle and pays you full cash value then they become the rightful owner of that vehicle. If you sold the vehicle then the insurance company has the right to be compensated from you.
- shjf47Lv 51 decade ago
Edit your question and insert the state you are insured in and the name of the other insurance company or better yet, email me & I will give you the correct answer.
The rules, procedures and laws regarding vehicle losses vary from state to state and from insurance company to insurance company.Source(s): insurance broker (many many years)
- scokemanLv 41 decade ago
Once they give you the money the car is theirs you can buy it back from them for a small cost and then trade it in but if you do this tell the insurance company that you do not want a salvage title on it. Good luck
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- pittLv 44 years ago
once you're finding for money, you're extra helpful off purely promoting your automobile outright. place an advert interior the paper, vehicle dealer, Ebay, and so on you will get extra money on your used automobile that way because of the fact sellers will frequently low ball your commerce in fee. remember nonetheless, that the broker will in all likelihood require a down charge, so once you sell your used automobile, the money you come again would desire to first bypass in the direction of down charge of recent automobile (locate out what the minimum required down charge is) then take although's left and pay down the credit enjoying cards.
- baseballfan56Lv 41 decade ago
When the insurance company pays you they will come and pick up the car and send it to auction. You can't keep it.