Too much for a salvage title?

[DC runner]

Carfax class-action lawsuit - LS1GTO.com Forums


This was a large lawsuit. Different states have different rules. There is no law requiring insurance companies to disclose information in no fault, 1 person accidents. If I spin out in the rain and hit a tree and the police are not called, my insurance will not report it.

If my 4runner is flooded out, my insurance doesn't have to report it. Perhaps some states require it or some insurance companies do offer that info, but mine doesn't.

It is absolutely voluntary.

 

[MikeInNH]

I can't find anything that says it's voluntary.

Don't have to.....Show me where it's MANDATORY???

First off...Insurance companies are NOT just going to send data about their clients to another company. They may SELL that information...but that's a different story. But MOST companies do NOT report this information or sell it. In fact in many states it's illegal for an insurance company to do so.

Second...Not all accidents/problems go through a insurance company. Many states like NH...you don't need insurance. So if someone without insurance gets in a single car accident...no insurance company will ever be notified.

Third...What about mechanical failures which would NEVER be reported to an insurance company. If a guy forgot to change his oil and the engine blew up...is he going to tell his insurance company??? Of course NOT...It's NOT an insurance matter. He's going to have it fixed or junk it..

So that takes care of insurance companies....Now how about mechanics...or dealers...Some dealers do report to these agencies...They actually have a contract with them. They want that information also...So in order for the companies to get that information they must supply it....Most independent mechanics DON'T. Many independents don't even have computers.....let alone the software to do this.

I guess Carfax is doing it's job. They have GREAT advertising. People are actually believing that when a car has a hick-up it's automatically reported....

 

[RickC]

Don't have to.....Show me where it's MANDATORY???

First off...Insurance companies are NOT just going to send data about their clients to another company. They may SELL that information...but that's a different story. But MOST companies do NOT report this information or sell it. In fact in many states it's illegal for an insurance company to do so.

Second...Not all accidents/problems go through a insurance company. Many states like NH...you don't need insurance. So if someone without insurance gets in a single car accident...no insurance company will ever be notified.

Third...What about mechanical failures which would NEVER be reported to an insurance company. If a guy forgot to change his oil and the engine blew up...is he going to tell his insurance company??? Of course NOT...It's NOT an insurance matter. He's going to have it fixed or junk it..

So that takes care of insurance companies....Now how about mechanics...or dealers...Some dealers do report to these agencies...They actually have a contract with them. They want that information also...So in order for the companies to get that information they must supply it....Most independent mechanics DON'T. Many independents don't even have computers.....let alone the software to do this.

I guess Carfax is doing it's job. They have GREAT advertising. People are actually believing that when a car has a hick-up it's automatically reported....

Geez, I was just asking if that was documented somewhere. I know for a fact that not all insurance companies report it because my daughter wrecked her Mazda3. It was a single car accident with no police report. My insurance company paid 5100.00 to fix the car, but didn't report it. So when I went to trade it, the accident didn't show up on Carfax.

I didn't mean to cause a stir, I was just wondering if it says somewhere that this reporting is voluntary.

 

[Uneek]

Personally, I would only buy a newer vehicle with a salvaged titled for something like a stolen stripped interior.

 

[Bigmikelakers]

Personally, I would only buy a newer vehicle with a salvaged titled for something like a stolen stripped interior.

Thats funny, most of the salvage titles I seen on craiglist always claim it was caused due to theft. Im sure some of the owners are lying to get rid of it faster.

Would a salvage title be hard to register/insure?

 

[ur7x]

Carfax class-action lawsuit - LS1GTO.com Forums


This was a large lawsuit. Different states have different rules. There is no law requiring insurance companies to disclose information in no fault, 1 person accidents. If I spin out in the rain and hit a tree and the police are not called, my insurance will not report it.

If my 4runner is flooded out, my insurance doesn't have to report it. Perhaps some states require it or some insurance companies do offer that info, but mine doesn't.

It is absolutely voluntary.

Yup! Absolutely! and LOTS of insurance companies and several state DMV's REFUSE to release info to CARFAX. Great in concept, in practice it SUCKS. I worked for a very large auto insurance company.. in the top 10 in North America and we released NOTHING to CARFAX.

I have ran CARFAX reports on several cars that I knew were either totals or near totals and had many of them come back clean... If a clean CARFAX report makes you all warm inside you are only fooling yourself. A blank CARFAX report tells you exactly that... NOTHING.

 

[Uneek]

Thats funny, most of the salvage titles I seen on craiglist always claim it was caused due to theft. Im sure some of the owners are lying to get rid of it faster.

Would a salvage title be hard to register/insure?

I had a salvaged vehicle it was about 12 yrs at the time when someone backed in the quarter panel. It got a salvaged titled because it worth about $4k and damages was $2700. I didn't do anything differently other than notify my insurance it became salvaged, I wanted it on one way.

 

[kobresia]

Thats funny, most of the salvage titles I seen on craiglist always claim it was caused due to theft. Im sure some of the owners are lying to get rid of it faster.

Would a salvage title be hard to register/insure?

Probably not, there are tons of cars with salvage titles out there.

All it means is that the vehicle was deemed to be non-roadworthy due to severe damage or unknown damage at some point in its life. Salvage titles also generally carry a flag that requires a safety/VIN inspection on the vehicle by the state patrol before it can be registered again following whatever caused them to be deemed not roadworthy. Typically, this is just to make sure they have headlights, brake lights, seat belts, and the vehicle is basically roadworthy and it's a one-time inspection.

As far as insuring a car that has a salvage title, sometimes the insurance company will want to have a look at it or see the repair invoices prior to underwriting comprehensive insurance, or they might balk at paying-out on a comp claim if there is evidence of pre-existing, uncorrected damage. Basic liability usually is not a problem to get since you're not asking the insurance company to replace your vehicle at retail value if you wreck it.

 

[MikeInNH]

All it means is that the vehicle was deemed to be non-roadworthy due to severe damage or unknown damage at some point in its life.

That's ONE explanation of a salvage title. But a vehicle that's been in a accident that the insurance company said was too costly to repair can also be sent to the junk yard...Although it may be perfectly fine to drive on the road...just the cost to repair the vehicle due to the accident was more then the vehicle is worth. Case in point...A car that's worth $5000...but in minor accident that releases all the air-bags...Car is perfectly drivable...but the cost to replace the airbags far exceeds the value of the car.