My wife had a car accident, and it wasn’t her fault. We filed a claim with our insurance to get things moving. They contacted us a few days later and proposed an expedited total loss. We agreed to that during the call. The car was practically new, only four months old. We then made a non-refundable deposit on a new identical vehicle since these are hard to come by right now. Now, they’re saying they want to repair the car instead. From what I’ve gathered online, they can’t take back the offer after we’ve accepted it. Is that legal? Should I get a lawyer? For context, we are with State Farm. ANY GUIDANCE WOULD BE GREAT! Thanks!
Did you sign anything or hand over the vehicle title?
Laws can differ by state, but usually, paperwork is involved before a claim is considered final.
Tory said:
Did you sign anything or hand over the vehicle title?
Laws can differ by state, but usually, paperwork is involved before a claim is considered final.
No, it was just a verbal agreement. I thought that should count as a verbal contract, but I’m in Alabama.
They might owe you for your non-refundable deposit, but keep in mind, it’s not State Farm’s fault you chose to put down a non-refundable amount.
You should inform the adjuster about what happened and see if that changes anything. This probably isn’t a scenario where estoppel applies since there may be fine print regarding the offer and the expedited total loss program. If you had signed over the title and they had issued a check, that would be a different story.
You essentially paid a deposit using money that wasn’t guaranteed. If the car is in high demand, they will likely find another buyer quickly. They can’t keep your deposit forever.
I had a claim about a month ago, and my side airbags deployed. I thought I’d cover it myself, but the claims handler said the system marked the car as a total loss. Since my car had no exterior damage and was driveable, she got it approved. My side mirror caused the airbags to activate, and ultimately, the official appraisal showed that the car was totaled.
@Kai
Mine was worse, and they don’t want to consider it a total loss… I had a front impact with three airbags deployed. So frustrating!
@Kai
This is crazy. Car manufacturers shouldn’t create cars with parts that are so costly or tough to replace that just a few damages could write off an entire vehicle.
The person handling the claim doesn’t have the final say on whether a car is totaled. They can only provide insights on what the system suggests, but until a proper appraisal is done, State Farm won’t make a total loss decision. What kind of car do you have, and what are the estimated damages? Also, getting a rental might push you over the limit, but it could be too late for that now.
@Kai
It’s a 2024 Grand Highlander Hybrid Limited. They estimated the damages at $15k (airbags deployed), but they say it needs to reach $40k to be considered a total loss.
Vic said:
@Kai
It’s a 2024 Grand Highlander Hybrid Limited. They estimated the damages at $15k (airbags deployed), but they say it needs to reach $40k to be considered a total loss.
Since you’re in Alabama, it seems the total loss threshold is based on the appraised value of your vehicle and it’s higher than the estimated damages. “Expedited total loss” suggests they think it might be totaled but still need to inspect it. Just because they mentioned it doesn’t mean it’s a guarantee that the vehicle is totaled. Until it’s at a repair shop and has started repairs, there’s still a chance it could be deemed repairable. Given the front-end damage and three deployed airbags, the vehicle could hit the total loss threshold on reassessment.
I suggest you request that your vehicle be taken to a shop of your choice and wait until the reassessment is completed before asking for a refund on your deposit for the new vehicle.
Unless there was an estoppel created, like if you actually bought a new car or put down a deposit for one, you’re probably out of luck. They can rescind the offer. It might have been an error caused by the insurance’s early total loss detection system, often AI-based. If you haven’t suffered a financial loss, they can change their minds.
@Vesper
I did put a deposit down for the new vehicle based on our conversation. Does that change anything? Is it possible for the insurance to cover my deposit?
Vic said:
@Vesper
I did put a deposit down for the new vehicle based on our conversation. Does that change anything? Is it possible for the insurance to cover my deposit?
If you spent money on that deposit, they should reimburse you, or depending on the situation, those costs might push your vehicle over the threshold and lead to it being written off. You would have needed to sign something after the offer was made and before it was retracted.
I know taking the risk with the $1k deposit is a concern, but that’s not my main issue. I genuinely don’t want to end up with a car that has lost value (like what appears on the Carfax and other reports) and dealing with potential issues in the future. What happens if the color doesn’t match just right, for example? I just don’t want a damaged car when I had counted on the agreement for expedited total loss.
@Vic
Then you should file a diminished value claim through the at-fault party’s insurance.
Storm said:
@Vic
Then you should file a diminished value claim through the at-fault party’s insurance.
A diminished value claim won’t go anywhere if the vehicle is ruled a total loss.