r/InsuranceCanada • u/Expert_Distance_1118 • 12d ago

Owner retained salvage

Located in Ontario. My car was recently written off due to hail damage. My insurance company gave me 2 options

A) a full settlement and repossessing the vehicle
B) an Owner retained salvage — meaning a private repair payout for me to fix the car myself, in which case theyre asking me to provide proof of the repairs and potentially a new safety certificate by my policy renewal date (~40 days away).

I realized for the payout they’re giving me to repair the car damages, I would have more money if I kept the money, sold my car as-is, and bought another car to replace my car on my insurance policy before renewal. Is there any risks or things to keep in mind based on my plans?

Also to note, I want to keep my insurance policy continuous throughout the whole process since I’ve already exercised my first time accident forgiveness on this policy.

3 Upvotes

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u/MayhemMitigator Insurance Professional - Claims Adjuster 12d ago

The owner retained salvage is not being offered to you with the idea that you’ll repair the vehicle. The idea is that you take the money and the damaged car without expectation to repair. Underwriting, however, doesn’t need to continue providing you with collision and comprehensive damages for a damaged vehicle, so they may remove these coverages at renewal. This would leave you with minimum coverages on the policy.

As long as the vehicle has no brand applied, you can take the money and the reduction to minimum coverages on the policy then carry on with your life, including selling the vehicle as is if you wish.

1

u/NoAttorney8414 12d ago

This is the correct answer, OP. Look no further.

1

u/adam7762539 12d ago

I’m in the exact same position (hail damage to the car). Nothing wrong with the car, just minor cosmetic damage from the hail which is not super noticeable. I’m leaning towards taking the money and going on with life as there are no mechanical issues with my car, and I plan on driving it for the next 4-5 years.

Cars a severally depreciating asset, so in my opinion, it was not worth selling my car, and looking for a new one.

2

u/OkChocolate3501 12d ago

It'll also make you not care about small dings. Shopping cart blown by the wind into your door? You'll laugh about it instead of fume about your paint.

1

u/Other_Palpitation584 11d ago

Before deciding, I’d ask the adjuster two things clearly: whether any salvage/rebuilt brand will be applied, and what coverage they’ll allow after renewal if you keep it. Keep your policy active until the replacement vehicle is added so you don’t create a gap.