minor fender benders in really old vehicles?

[rem74]

My inlaws were driving home from my house last night, and someone tapped their car.  The damage was apparently very minor.  The inlaw's car (a Mitsubishi Montero) is a 2000 model, and it's their only car.  It was still drivable, and the guy who tapped them pulled over and gave his insurance information.

The insurance is in effect, but I don't know what the next steps are.

What happens, if the cost of repairing the damage is more than what the car is worth?  Who determines what the car is worth (is it the insurance, and do they go by Edmunds, Kelly Blue Book, or something else)?

Does something happen to the title, if the car is repaired or not repaired?  The car needs to be given its yearly inspection in November.  I think it might have some minor repair that is needed (something about a vacuum hose) to pass the inspection.

I'm kind of worried about my inlaws (and feel sort of guilty that the accident happened after they left my house).  I can't imagine they have the money to either buy a cash car or make payments on a financed car (even a used car).  They have endless money problems already. 

Sorry if these questions seem stupid. 

[Blonde Granny]

I can give you no help, but I will say "welcome" to our little part of the online world. We're happy you're here and as the old expression says, there are no dumb questions.

[Deleted]

Most likely it will benefit them.  If the amount of damage is more then the car is worth, the insurance company will give them the value of the car and it will be noted as a salvage car.  They might have to buy back the car, but it will be for less money then was given to them.  They can still drive it and tag it, etc.  If the damage was less then the value of the car, the insurance company will give them the money to fix the car.  They can either fix it or not.  If they do not fix it, that can affect them getting full coverage, but I am guessing they do not have that anyway.  Hopefully, and probably, they will come out ahead if they do not mind the damage much.

[Blonde Granny]

hickle: what about the state inspection that must be done in November. That would really rock their boat if the state requires major expenses to fix what was damaged.

[Deleted]

Jul 5, 2015 10:41:44 GMT -5 Blonde Granny said:

hickle: what about the state inspection that must be done in November. That would really rock their boat if the state requires major expenses to fix what was damaged.

If it does not pass inspection that would be a problem.  She said it only needs minor repair to meet inspection.

I think it might have some minor repair that is needed (something about a vacuum hose) to pass the inspection.

[billisonboard]

Do the in-laws have an insurance agent or company rep? I would be talking to that person/company. This is one of the reasons you pay them. 

[ken a.k.a OMK]

If it's minor and just cosmetic, and the other persons insurance sends a settlement check, you have the option of fixing it or banking the money. Accepting a settlement would mean signing a form that you won't ask for more money. Case closed.

[andi9899]

They need to find a shop to give them an estimate. Insurance companies have preferred providers and will guarantee the work while they own the car. Or they can use one of their own. The damage/value is determined using NADA values usually. If it is deemed a total loss, they can take a smaller amount of money if they want to keep the car. It will need to be retitled as rebuilt salvage.

[alabamagal]

Doesn't it depend on the laws of the state they are in? No fault or not?

When my kids have been at fault in minor accidents our insurance paid for all the repairs to the other car. One kid had to hit a jaguar!

If they get the money they can chose to repair or not.

After my son hit the jag there was damage to his bumper. $500 to replace bumper which was under our $1000 deductible. We left it alone for 3 years while he was in college. When he got a job with a car insurance company we had the damage painted for $100 and his car passed inspection and looked fine.

[mollyanna58]

Jul 5, 2015 13:42:20 GMT -5 alabamagal said:

Doesn't it depend on the laws of the state they are in? No fault or not?

"No fault" has to do with medical bills, not the damage to the car.  In "no fault" states, your own car insurance pays your medical bills, no matter who was at fault in the accident.  It means your medical bills will be paid without you having to sue the person who caused the accident.

The driver who caused the accident is still responsible for paying for the damage done to the other vehicle.

[rem74]

Jul 5, 2015 11:03:30 GMT -5 andi9899 said:

They need to find a shop to give them an estimate. Insurance companies have preferred providers and will guarantee the work while they own the car. Or they can use one of their own. The damage/value is determined using NADA values usually. If it is deemed a total loss, they can take a smaller amount of money if they want to keep the car. It will need to be retitled as rebuilt salvage.

Hi Andi9899, thank you for reading and replying.  So, a rebuilt salvage title would mean my inlaws could keep driving the car, as long as it passes inspection, I guess?  But, a rebuilt salvage would just lower the price they could sell the car for in the future? And the inlaws would only be able to get liability insurance, not full coverage, with a rebuilt salvage title, correct?

I think their plan is to drive the car until it falls apart with them in it. 

I wish they had made it a priority several years ago (they are 73 and 70 right now), to be in a newer vehicle than the one they're in now.  My FIL doesn't work (he has this dream to build a port on a certain island) so he's always meeting with investors and sending presentations and stuff to people, for a project that never goes anywhere (it's been at least 4 years of this).  Before this, it was other projects that never went anywhere.  These "projects" keep him too busy to even take a part time job anywhere, so that just leaves my MIL to work.  She has to look after my nephew, while my SIL works (there's no father in the picture, to privide nephew/SIL with anything).  But really, MIL said she doesn't want to work anywhere, even when nephew starts kindergarten in another year.  If SIL were really raking it in, then she could pay MIL to babysit nephew, but unfortunately she's probably making $13/hr or so, and driving 40miles round trip to do that.  That's been going on for years, so I don't see it improving.

From what I hear, they have no savings, and 2 or 3 years ago had a windfall, and paid down 20k in credit card debt, leaving them still 50k in the hole.  I hope they've wittled that down further since then (but with what money?).  They are living off SS, and small pension, and what I pay my MIL to babysit my toddler for 3 days a week.  They also have a mortgage (they split it with my SIL) they are only 2 years into paying on (30 year mortgage).  They've talked about getting a different car, but I think even splitting a payment on a used car (with SIL paying half) would be out of their reach.  It just seems like they are one small step away from financial disaster, constantly. And it doesn't seem to bother them, to skate so close to the edge!

 It bums me out to see them live this way.

[rem74]

Also, I wanted to thank everyone who read & replied. 

[andi9899]

If they keep it at salvage, they can keep the car. They would likely be able to get full coverage on it, but they won't get as much out of it if it were totaled again, so it may be a waste of money. And they would not be able to sell the car for as much later. Also check and see what the rules are for retitling it. Here we have some hoops to jump through. It may be worth letting it go.

[Deleted]

If it's only cosmetic, I'd just take the check and not fix it.  I hit 2 deer with my old Nissan truck in it's final years.  Replaced my stove and bought a chest freezer with the 2 insurance checks.  The truck looked like hell, but I didn't care.  Actually, the rust was worse than the dents.

[weltschmerz]

Jul 5, 2015 10:27:34 GMT -5 rem74 said:

My inlaws were driving home from my house last night, and someone tapped their car.  The damage was apparently very minor.  The inlaw's car (a Mitsubishi Montero) is a 2000 model, and it's their only car.  It was still drivable, and the guy who tapped them pulled over and gave his insurance information.

The insurance is in effect, but I don't know what the next steps are.

What happens, if the cost of repairing the damage is more than what the car is worth?  Who determines what the car is worth (is it the insurance, and do they go by Edmunds, Kelly Blue Book, or something else)?

Does something happen to the title, if the car is repaired or not repaired?  The car needs to be given its yearly inspection in November.  I think it might have some minor repair that is needed (something about a vacuum hose) to pass the inspection.

I'm kind of worried about my inlaws (and feel sort of guilty that the accident happened after they left my house).  I can't imagine they have the money to either buy a cash car or make payments on a financed car (even a used car).  They have endless money problems already. 

Sorry if these questions seem stupid. 

If it's something very minor, I try not to get the insurance company involved at all. Sometimes the cost of the repair is less than your deductible, and the insurance company will raise your rates if you put in a claim. Not worth it, IMO, especially for a car that old.

The vehicle inspection is a different matter altogether.

[gooddecisions]

If it was the other drivers fault, their insurance will pay it. Your inlaws don't have to worry about a deductible. 

Somebody just hit us from behind. It didn't do much damage to our 2000 maxima, and we could still drive away. We called their insurance company, who told us which body shop to take it. Body shop estimated $750 and we drove it home. Within a week, their insurance company sent a check for $750. Their insurance company called to check up. My dh said he still felt a little stiff but was fine. They sent another $500 to close the claim. 

We won't be getting the bumper repaired and will continue to drive the car until the wheels fall off. That $1250 can now go to whatever. No fraud was committed.

[cael]

I just went through this as some folks may remember, although it was our (my husband's ) fault. Cost to repair our 16yo car was more than the car was worth. Because the car is over 10y old we didn't have to get a salvage title for it (MA law I think, may differ in other states) and we took a check for 'totaling' the car out. If we'd let them salvage the car we only would've gotten about $200 more, the car runs great besides the missing headlight so we didn't let them salvage it. It would've gone differently if the car had not been 10yo I think. My BIL gave us a replacement headlight free, he had it hanging around his shop! We aren't repairing the dent or little chunk out of the bumper, not worth it. Saving most of the check from the insurance ($1600ish) to start new car down payment fund.

I know our car wouldn't pass inspection in the winter if we don't replace the headlight, but otherwise it should pass.

[Phoenix84]

From what I understand, if the cost to repair exceeds the cost of the car, the insurance company will just reimburse you the amount the car is worth.

I think they'll just give you the money, up to you if you actually keep the car or not, but they probably won't let you make any more claims on it.

One time, my car got hail damage, I made a claim and just pocketed the money since it was an old car. Same when some lady dinged it in front of the supermarket. I just pocketed the $600 or so her insurance gave me and went on my marry way.