Is it legal for an insurance company to have a totaled car repaired and give it back to the owner?

Question:
The car was already determined to be totaled by the insurance company because the cost to repair the car exceeded 70% of the fair value of the car but not the total fair value. Instead of giving us the fair value, however, the insurance company decided to have the car repaired and give it back to us because it still cost the insurance company less money. Now it is apparent that car does not function as well as before.

Answers:

Is this Legal or not?

We had a similar situation a few years back and we were told that the adjuster for our insurance (AAA) had the final say in whether or not AAA would have the car repaired. We took the car back to the auto shop a couple times until the car ran pretty good but it was never again like it was. We ended up selling the car a year later.

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If it was repaired,it obviously wasnt totalled

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I would have to assume that the car WAS repairable, I have known people who wanted the car repaired as you stated, and the insurance company would not do it to even save themselves money. So I have to assume that you car was repairable and you are misunderstanding some of the communications from your insurance company. Now, as to the function of your car. There should be some type of warranty from the people who repaired the car and also from the insurance company. You should contact you insurance company as to what steps to take as to the performance of your repaired vehicle.

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What is meant by "Cash out" in regard to Auto Insurance?

Usually, a total means the cost of repair is equal to, or greater than, the fair market value of the car. Can they choose to fix the car instead of paying you off? Absolutely. However, depending on the state you live in (you'll have to do the research) it is likely that the law allows for any repairs completed to be acceptable to you; if they cheaped out on the repair and you can point to specific things that were repaired incorrectly, you should be able to get additional fixes done.

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Remember, however, that you're dealing with an insurance company -- get everything in writing, accept no promises over the phone, and make sure you have the appropriate statutes to quote. Make sure it's worth the effort, and if not -- sell the car off for the fair market value.

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I don't know about that one it sounds fishy to me, If they declare a car totaled and it goes back on the road it has to have a salvaged title. And they are trying to give it back to you. Not me, I wouldn't even trust the car. That car will never be the same you'll have nothing but trouble. Cash out, seek a lawyer But don't take the car back.................
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