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The Insurance Company won’t write it off, although my car lost value in a rear-ending

22 Aug 17
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I was rear-ended in stop-and-go traffic on the street. I wasn’t to blame. The insurance provider would like to repair it and I want to get it written off — although the residual value of the car is affected. It states repairing it’s going to cost $ 8,100 and has overappraised my car. However, I checked with dealerships that say my car was worth only $6,000-$9,000 will be worth $ 3,000 and before the collision-$4,000 after the repairs. I have a loan of $ 10,150, but I am willing to meet involving the expense of the vehicle and the repairs — at $ 10,000, it’s already costing the insurance company. How do they do this? — Sylvanna, Toronto

You’ve no right if your vehicle is in a crash in Ontario.

“Here is a situation where someone says, ‘I have this loan plus a write-off suits me {}”’ stated Pete Karageorgos, manager of Ontario consumer and business relations with the Insurance Bureau of Canada (IBC). “Typically, the insurance carrier will say, ‘We will do what is in the policy. ”’

So what exactly does the Ontario Automobile say? Section 7.7 of it says, “We shall pay the lower of the following: The cost to repair the damage or loss, less the deductible; or the actual money value [ACV] of the car at the time it was stolen or damaged, less the deductible.”

To put it differently, they’ll do what is cheapest.

Then your insurance carrier will write it off — exactly what it should cost you to replace your car in the same year with mileage and options — if repairs will cost more than the ACV. It declares it salvage takes the vehicle and provides you the cash.

But, as stated by the policy, the choice is up to the insurance provider. Section 6.6 of the policy states, “We have the right to repair, replace or reconstruct the automobile as opposed to cover the damage.”

“If they are going to write off the car, they do it based on security issues and price,” said Viraf Baliwalla, creator of Automall Network, a Toronto car broker. “If repairs will cost 72 or 75 percent of the total cost of the vehicle itself, they will typically wind up writing it off as you are going to have other problems later on.”

Loan exception?

? Everything you owe on the car.

“The law does not care about your debt,” stated Maurice Bramhall, a Toronto appraiser. “The legislation in Ontario has a procedure by which the insurer does its damage appraisal and decides the repair-ability — they could say whether it is repairable or not.”

You can while the insurer has the right to decide whether or not to write off your car Under the Insurance Act if you disagree with its own estimates of the ACV or the harm. “For this procedure, each side will appoint an appraiser, and the two appraisers will agree on a value, or if they disagree, will both agree to appoint an umpire who will make a final decision in the matter,” the Financial Services Commission of Ontario stated in an e-mail announcement.

An appraiser could cost $300 or more and there are no guarantees of the result. The appraiser might find harm that could push the repair costs to write it off — or could agree with the insurer.

Diminished value

Thus, if your car is being repaired by your insurance company so that it looks and runs as it did? Stigma, Karageorgos said.

“Provided that you have the correct quality of repairs completed, most people won’t understand the difference — but in this era, searches can be done,” Karageorgos said. “I could choose between a car that has been in an accident and a car that was not in an accident. And I might find a better deal on the car which was in the collision, though these two cars will last as long on the street.”

The difference between what your car is worth before and after a crash is known as diminished value (DV).

“It can be repaired correctly but folks will say, ‘What if there is an extra rattle? ”’ Baliwalla said. “So for this, they won’t cover the same{}”

It means that your vehicle has depreciated due to the crash, even once you’ve done nothing wrong.

“Here in Ontario, insurance companies will not cover diminished value,” stated Michael Alexander, a Toronto lawyer who handles insurance claims. “If the amount is below $25,000, you may attempt to get it back by suing whoever hit you in small claims court. When it’s over that, you will have to hire an attorney and go to Superior Court.”

While there were two successful court cases in British Columbia where motorists resisted the Insurance Corporation of British Columbia (ICBC) for diminished value, ICBC doesn’t cover it for all injuries. In america, Georgia requires reparation to be offered by insurance companies .

But taking the driver does not mean you’ll win, Bramhall said.

“You may find a judge that says, ‘You know what? This is to driving a danger — you have made no complaints and your automobile was five years old repaired,”’ Bramhall said.

What is your car actually worth?

Do not base your car’s value — after the crash or before — on what you are told by dealerships, Bramhall said.

“Moving to a car dealer and asking, ‘What is the value of my vehicle?’ Is a little like talking to the tiger who has got you in his mouth to eat you,” Bramhall said. “The trader has no interest in offering fair value — the more they can downplay the value, the more they will make when they sell to a wholesaler.”

How much is your car worth? It depends just how much it was worth before the crash — and on the damage.

“Generally speaking, you can say that DV is about 10-30 percent of the car value. However, I have seen it where DV is more than 50 percent of the car value,” Baliwalla stated.

New luxury cars, like a Bentley, tend to endure the most for them will want to cover a automobile that was new, Baliwalla stated.

“But if the car is worth $10,000 or $11,000 as it stands, it might be that there is some diminished value — but the longer you keep it, it is going to go down to next to nothing,” Baliwalla stated.

And, after repairs, that car should have the exact same lifespan.

Insurance companies don’t look at value, if you get in a different accident — as though it had not been in an accident, Bramhall said, they will cover the ACV of the vehicle.

And, if repairs were done correctly, your car may look its era.

“Unless you are immediately considering selling it, you have not actually lost anything,” Baliwalla stated. “You’re likely put back in a much better position than previously.”

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