auto insurance guru question.

My girlfriend was involved in a 5 car pileup on the interstate 2 days ago. An inattentive driver pushed 3 cars into the back of her car while she was waiting for traffic to move. The body shop stopped writing the estimate when the repairs exceeded 80% of the value of the car. Being in the business of buying cars at the insurance auctions I asked her to try to buy back her car after they make her an offer. she called her insurance agent, who told her that is illegal and they will cancel her insurance if she tries to buy her car back. They claim that if she buys the car from them she is effectively stealing the car from the guilty party's insurance company. She said she has had a 15 year relationship with her insurance company and she wants to make sure that they are happy and she will take whatever they offer since they have done business for years. I contacted the Tennessee commissioner on property insurance, who was very hesitant to talk to me and encouraged me to contact a lawyer if I wanted legal advise. We have bought several owner buyback cars over the years and have never heard of this. What am I missing?

Things may be different in NC, but I bought my car back after my collision with no questions asked.

They're full of it. I've done it before. Unless state law says otherwise, or there's something in her policy preventing her from doing so.... Tell em to pound sand. I also confirmed this with my insurance agent, who happens to be my brother.

Upon further review- she definitely needs them to go pound sand. She's had them for 15 years. They've got her elbow deep and they know it. They'll throw out any kind of slick bs they can to make as much money back as possible. No one in insurance is in the business of customer retention anymore. All they're trying to do in this case is minimize loss on their part, which probably means them ending up with your chicks rig after they bend over the other insurance. On top of that they're probably lowballing the E36 M3 out of the settlement. Because what will happen I. A lot of cases (and you probably know this) is your insurance will pay for your damages and proceed to try and lay the smack down on the bad guy. Its why I got checks from farmers when my mini got hit and the guilty one had GEICO. Farmers used lawyer and it Was super effective.

Unless there is some special law in your state they are full of it.

Her mistake was calling the agent. They are good at putting together policies but often not so much with how claims work. The body shop and adjuster would be better to talk to. To outside people what you are doing often ends up sounding like a scam for some reason.

Agents are morons. I've worked with enough of them to know that they know absolutely nothing about claims, only selling policies.

The car is hers; she can retain it if she wants to. They can't "cancel her policy" simply because she wants to keep something that is hers. What if she just wants it for parts? Has nothing to do with her policy.

Now, they may not choose to insure it if it's repaired and has a reconstructed title, but that's a different topic. You need to talk to the claims adjuster, not the agent.

Yep, need to talk to the adjuster. In fact, here in SC the adjuster will generally offer the car back for XXXX, if you don't want it then it goes to auction.

I did run into a situation where State Farm claimed that since the Trooper's damage exceeded 70% of its value they said they 'had to' take the vehicle and auction it. Oh HELLS no; been down that road before. It finally culminated in the title becoming a 'salvage' title; WTF did I care? The value had bottomed out already, I just needed a reliable paid for vehicle for a couple more years.

Maybe the salvage title thing is what your agent or whoever is referring to?

mndsm wrote: No one in insurance is in the business of customer retention anymore. All they're trying to do in this case is minimize loss on their part, which probably means them ending up with your chicks rig after they bend over the other insurance. On top of that they're probably lowballing the E36 M3 out of the settlement. Because what will happen I. A lot of cases (and you probably know this) is your insurance will pay for your damages and proceed to try and lay the smack down on the bad guy.

Wrong, wrong, and wrong.

As for the car, like ddavid said, agents tend to be morons when it comes to claims. They're salespeople, they don't know the claims business. Could they refuse to title the car? Sure. Is it "illegal" to buy it back? Not a chance. You definitely want to check with the state DMV, they all have different laws about salvage titles. For example, in Florida, you cannot retitle a prior salvage car. It is issued a certificate of destruction, so it is forever a parts car. But yes, if after checking the title laws you decide you want to buy it back, you can. They (the insurance company) will set the price on salvage.

In reply to Klayfish:

You must have different experiences than me then, because with the exception of my brother being my agent, I've never been anything more than a number and a paycheck. YMMV.

mndsm wrote: In reply to Klayfish: You must have different experiences than me then, because with the exception of my brother being my agent, I've never been anything more than a number and a paycheck. YMMV.

Yes, I've been in the auto claims business for 17 years. It's what pays the bills and lets me go racing. You know, we get our salary based on how much we cheat people out of... ...or at least people think so.

Klayfish wrote:

mndsm wrote: In reply to Klayfish: You must have different experiences than me then, because with the exception of my brother being my agent, I've never been anything more than a number and a paycheck. YMMV.

Yes, I've been in the auto claims business for 17 years. It's what pays the bills and lets me go racing. You know, we get our salary based on how much we cheat people out of... ...or at least people think so.

Fair enough. I can accept that, and formally apologize for my unbecoming behavior. The holidays make me unfriendly.

No worries, I'll make sure Santa leaves you an extra candy cane...

There is often a wide gap between how insurance really works and how people want it to, think it should, etc... This agents' moronic comments are a perfect case in point.

Who's insurance is paying ? Hers or the original hitter ? Could make a difference.

When an insurance company "buys" a car, they in turn sell it to a salvage company.

I think it's time for a new agent...

Why would her agent have any say in the situation anyways? Unless I am missing something here, she should be talking to the claims adjuster from the person that caused the accident. The only time I totaled a car, I didn't even talk to my insurance company other than to let them know I was hit by someone else.

I appreciate the feedback, I knew Klayfish would have the definitive answer. the whole point is probably moot since she refuses to let me buy the car. Her whole family has teamed up against me since I've called bovine excrement on their insurance company. I guess 15 year relationships with Farm Bureau supersede 13 year relationships with people you share dogs with.

With that said, does anyone need new KYB shocks and struts for an 03-06 G35 Coupe? I planned on taking her car to my shop Saturday to install them.

A little follow up; The insurance company offered to let her buy the car without any drama. They offered $6,400 if she kept the car and $9,500 if they kept the car. The G35 is worth about $6,500 in undamaged condition so the offer of $9,500 was more than fair. I'll be following the car as it's prepped for auction. I figure I can get it through IAAI cheaper than what the insurance co. offered to let her buy it back for. She called me today at work to let me know that she took her check last night and bought a new AWD Q50 Sport to replace her beloved G35.
Kudos to Farm Bureau for making such a fair offer despite a misinformed agent creating problems.

Always nice to hear a happy ending. When my last car was totaled, their first offer was what i had paid for it 3 months earlier. They even covered the winter wheel and tire setup i had just purchased and couldn't get off the car.

one line stuck out in the OP: why in the world was she worried about her insurance company being happy? she pays them to keep her happy when E36 M3 happens..