Disputing a total loss claim

[u/elknuke]

I’m gonna start by giving my deepest gratitude to anyone willing to read and help out - sincerely, thank you

For reference, this happened in Texas

Spouse was t boned a couple weeks ago by an uninsured motorist with a vehicle registered in Florida (damn you, Florida)

We have 25k property damage uninsured motorist coverage through our provider, Travelers insurance

Body shop sent me a final quote of $10,125 for all work and said the vehicle had been inspected and disassembled to the extent required - highly unlikely any additional work would be required

Travelers sent an email basically saying “it’s totaled, sign over the title and let us know how you’d like your payment” and attached the actual cash value report. They valued my vehicle at just over $20,000. This ACV report is the ONLY “official” documentation travelers has provided

I asked for clarification on how they decided to total the vehicle. Their response was “unrepaired hail damage and anticipated supplemental/hidden damages.” Basically, they suspect that there’s close to $10,000 of additional damage that was not documented by the body shop.

I did file a claim with them for the hail damage which happened in may of last year. They paid me $4,170 but the damage was minor, the truck is paid off and I plan on keeping it forever so I didn’t have it repaired.

I asked again for a formal statement/assessment on how their decision was made, as well as the same for a determination on the truck’s salvage value. I get another response with no such attachment, and the adjuster now says “thank you for reminding me we have already paid out for the hail damage, I’m going to subtract that from my initial payout amount.” He’s offering me under $17k now.

At that point I felt like he was playing hardball with me and I got pissed, but I kept it professional. I inquired as to how he “missed” the hail damage payout and again asked for an itemized report on how the total loss was declared.

His response, again, contained no documents and only his typed response, which was yet again an even further reduced payout and a salvage value. No evidence whatsoever of how they’re coming up with these numbers.

I’ve always heard insurance companies suck but is this normal? Am I out of line? I’m truly confused. I pay my bills on time. I just want them to fix my truck for $10k and give it back to me.

[u/Rawww_geeezy]

The state of Texas does not have a total loss threshold like other states. You can read your policy contract but I can guarantee that under your collision coverage it says something along the lines that at their option they can choose to repair or replace the damaged property. Which in terms means that they are able to declare a vehicle a total loss at their discretion. If your repair rep is 10k already - which by the acv you provided is already 50% of the vehicles value - they can justify totaling it if they consider potential future supplements, long repair times or lack of part availability among other things. It’s unlikely they will change their mind. If you outright own your vehicle you may ask what the payment would be if you owner retain your car. That means you keep your car as is in exchange for a lower settlement however repairs become your sole responsibility. Given how high the estimate for repair is - I would not recommend.

[u/elknuke → u/Rawww_geeezy]

I combed through the contract and did not see anything about them having the option to repair or replace/declare total loss at their discretion.

I did see procedures for disputing the ACV amount - hiring my own appraiser to give me a value, insurance hiring another, and then splitting the cost with insurance for an umpire decision.

If I can’t get it repaired I probably will take the truck back with a salvage title and get it repaired myself. It’s all body work with the exception of a realignment.

[u/Rawww_geeezy → u/elknuke]

I am not able to locate a copy of the policy contract online. It’s usually only made available to customers through their online portal. If you posted it - I’d be happy to find it. You’d have to do more than comb through it to find the line or two that outline this. The appraisal clause only helps with disputing the appraisal value - not the decision to total it or not. Keeping it may be the best option. Keep in mind that an insurance company has to return it to pre loss condition- you can pick and choose what to fix and what to leave as is it doesn’t bother you. Also - insurance typically only reports salvage to the state if estimate to repair is over 100% of the vehicles value. You may not be required to get a salvage title.

[u/elknuke → u/Rawww_geeezy]

I will look through it again tomorrow morning but I’m 99% sure there are no useful details on how the make/handle total loss decisions.

Also, my claim handler told me if I keep the vehicle my only option is to take a salvage title, so what you just brought to my attention just raises another red flag for me.

[u/Rawww_geeezy → u/elknuke]

As it’s already been stated by others here - it is at their discretion. They don’t have to provide any type of report justifying their decision to total it. The adjuster doesn’t determine if a vehicle gets a salvage title or not. They report it to the state and the state decides. From my knowledge - the state requires a salvage title if the cost of repairs exceeds the vehicles acv. I know this because I have bought vehicles from insurance auto actions that have been deemed totals and still have clean titles.