Insurance Question
Thread Starter
Track Day
Joined: Feb 2021
Posts: 15
Likes: 17
Insurance Question
Guys,
I have an insurance related question I was hoping you might shed some light on:
(Please note that this is not strictly related to a 993 but I feel more of you might possibly know the answer to this question. In any event, I will post the question in the general forum as well. Thanks!)
My mother-in-law had accident in her car (not a Porsche) and did moderate damage which can be repaired for $18,000. (No one else was involved). Her insurance company offered to pay her $16,000 to take possession of the car and call it a complete loss.
My understanding is that the insurance company will take the car and sell it for parts and will net far more in financial return than the $16,000 they would have paid for the vehicle.
My mother-in-law would prefer to pay out of pocket for the repairs and continue to own this car. I presume the insurance company will give her some small amount in this scenario.
Here’s my question: presuming that the insurance company will lose its own money-making-opportunity by not taking possession of the vehicle will they make up the difference by charging my mother-in-law a higher insurance price moving forward (on top of what they will probably charge her for being an increased risk given her accident)?
This question is relevant to the math behind deciding to keep and repair the car versus selling it to the insurance company.
Thank you for any thoughts or experience!
Best,
Austria911 (Martin)
I have an insurance related question I was hoping you might shed some light on:
(Please note that this is not strictly related to a 993 but I feel more of you might possibly know the answer to this question. In any event, I will post the question in the general forum as well. Thanks!)
My mother-in-law had accident in her car (not a Porsche) and did moderate damage which can be repaired for $18,000. (No one else was involved). Her insurance company offered to pay her $16,000 to take possession of the car and call it a complete loss.
My understanding is that the insurance company will take the car and sell it for parts and will net far more in financial return than the $16,000 they would have paid for the vehicle.
My mother-in-law would prefer to pay out of pocket for the repairs and continue to own this car. I presume the insurance company will give her some small amount in this scenario.
Here’s my question: presuming that the insurance company will lose its own money-making-opportunity by not taking possession of the vehicle will they make up the difference by charging my mother-in-law a higher insurance price moving forward (on top of what they will probably charge her for being an increased risk given her accident)?
This question is relevant to the math behind deciding to keep and repair the car versus selling it to the insurance company.
Thank you for any thoughts or experience!
Best,
Austria911 (Martin)
Last edited by Austria911; Feb 20, 2021 at 05:45 AM.
Rennlist Member
Joined: Feb 2018
Posts: 1,793
Likes: 296
From: United States
Guys,
I have an insurance related question I was hoping you might shed some light on:
(Please note that this is not strictly related to a 993 but I feel more of you might possibly know the answer to this question. In any event, I will post the question in the general forum as well. Thanks!)
My mother-in-law had accident in her car (not a Porsche) and did moderate damage which can be repaired for $18,000. (No one else was involved). Her insurance company offered to pay her $16,000 to take possession of the car and call it a complete loss.
My understanding is that the insurance company will take the car and sell it for parts and will net far more in financial return than the $16,000 they would have paid for the vehicle.
My mother-in-law would prefer to pay out of pocket for the repairs and continue to own this car. I presume the insurance company will give her some small amount in this scenario.
Heres my question: presuming that the insurance company will lose its own money-making-opportunity by not taking possession of the vehicle will they make up the difference by charging my mother-in-law a higher insurance price moving forward (on top of what they will probably charge her for being an increased risk given her accident)?
This question is relevant to the math behind deciding to keep and repair the car versus selling it to the insurance company.
Thank you for any thoughts or experience!
Best,
Austria911 (Martin)
I have an insurance related question I was hoping you might shed some light on:
(Please note that this is not strictly related to a 993 but I feel more of you might possibly know the answer to this question. In any event, I will post the question in the general forum as well. Thanks!)
My mother-in-law had accident in her car (not a Porsche) and did moderate damage which can be repaired for $18,000. (No one else was involved). Her insurance company offered to pay her $16,000 to take possession of the car and call it a complete loss.
My understanding is that the insurance company will take the car and sell it for parts and will net far more in financial return than the $16,000 they would have paid for the vehicle.
My mother-in-law would prefer to pay out of pocket for the repairs and continue to own this car. I presume the insurance company will give her some small amount in this scenario.
Heres my question: presuming that the insurance company will lose its own money-making-opportunity by not taking possession of the vehicle will they make up the difference by charging my mother-in-law a higher insurance price moving forward (on top of what they will probably charge her for being an increased risk given her accident)?
This question is relevant to the math behind deciding to keep and repair the car versus selling it to the insurance company.
Thank you for any thoughts or experience!
Best,
Austria911 (Martin)
I hope my information proves helpful.
Thread Starter
Track Day
Joined: Feb 2021
Posts: 15
Likes: 17
Thank you for your replies Twilight Blue and The Ben. To answer your question the car is located in the San Francisco Bay area. The car is a 2007 Lexus GX 470 with 70,000 miles.
It had been in good working order until the accident: my mother-in-law hit a parked car at less than 20 mph.
The Lexus's front corner and right corner suspension components were damaged but the engine and drive train are okay. The repair shop says the car is repairable and safe once repaired. The insurance company estimates the value of the car at $16,000 and the cost to repair at $18,000 and thus have said the car is a total loss.
One follow up question I wondered about: how far above the repair cost does the car's market value need to be for the insurance company to say the car is worth repairing (and not trigger a salvage title) --it does seem that similar Lexus's at this mileage are selling for $22,000 to $24,000.
Thanks again guys.
Martin (Austria911)
It had been in good working order until the accident: my mother-in-law hit a parked car at less than 20 mph.
The Lexus's front corner and right corner suspension components were damaged but the engine and drive train are okay. The repair shop says the car is repairable and safe once repaired. The insurance company estimates the value of the car at $16,000 and the cost to repair at $18,000 and thus have said the car is a total loss.
One follow up question I wondered about: how far above the repair cost does the car's market value need to be for the insurance company to say the car is worth repairing (and not trigger a salvage title) --it does seem that similar Lexus's at this mileage are selling for $22,000 to $24,000.
Thanks again guys.
Martin (Austria911)
Last edited by Austria911; Feb 20, 2021 at 03:56 PM.
Burning Brakes
Joined: Jul 2012
Posts: 1,082
Likes: 358
Thank you for your replies Twilight Blue and The Ben. To answer your question the car is located in the San Francisco Bay area. The car is a 2007 Lexus GX 470 with 70,000 miles.
It had been in good working order until the accident: my mother-in-law hit a parked car at less than 20 mph.
The Lexus's front corner and right corner suspension components were damaged but the engine and drive train are okay. The repair shop says the car is repairable and safe once repaired. The insurance company estimates the value of the car at $16,000 and the cost to repair at $18,000 and thus have said the car is a total loss.
One follow up question I wondered about: how far above the repair cost does the car's market value need to be for the insurance company to say the car is worth repairing (and not trigger a salvage title) --it does seem that similar Lexus's at this mileage are selling for $22,000 to $24,000.
Thanks again guys.
Martin (Austria911)
It had been in good working order until the accident: my mother-in-law hit a parked car at less than 20 mph.
The Lexus's front corner and right corner suspension components were damaged but the engine and drive train are okay. The repair shop says the car is repairable and safe once repaired. The insurance company estimates the value of the car at $16,000 and the cost to repair at $18,000 and thus have said the car is a total loss.
One follow up question I wondered about: how far above the repair cost does the car's market value need to be for the insurance company to say the car is worth repairing (and not trigger a salvage title) --it does seem that similar Lexus's at this mileage are selling for $22,000 to $24,000.
Thanks again guys.
Martin (Austria911)
So there is nothing to stop her (or you) from bargaining w/ the Ins Co, she doesn't have to (and many don't) take their 1st offer.
Drifting
Joined: Aug 2009
Posts: 2,175
Likes: 144
From: Venice Beach
Do you have pics? Maybe you can buy the car back and repair at another shop. 16k sounds like a lot but maybe there is a less expensive way to do it by cutting some corners? Insurance jobs are favored by body shops most of the time. You might be able to get the insurance to increase their offer by providing better comps for similar cars.
Thread Starter
Track Day
Joined: Feb 2021
Posts: 15
Likes: 17
I don't have a picture at the moment. Thanks for the suggestions about the alternate body shops and with bargaining for a higher offer.
I'm going to speak with the insurance company on Monday to see what options she might have from their perspective. She strongly prefers keeping and repairing the car.
I'm going to speak with the insurance company on Monday to see what options she might have from their perspective. She strongly prefers keeping and repairing the car.
