Legal Question in Business Law in Arizona

I am in a dispute with my insurance company. My vehicle was damaged and I have a repair estimate for approximately $4,000. My insurance company, however, has determined my vehicle to be "uneconomical to repair" under A.R.S. 28-2091(T)(4), and therefore a "Salvage Vehicle." My insurance company has appraised my vehicle's value at $22,364.59.

I disagree that my $22,364.59 vehicle is "uneconomical to repair" with only $4,000 in damage and therefore I do not believe my vehicle meets the definition of a "Salvage Vehicle" as defined by A.R.S. 28-2091(T)(4).

A.R.S. 28-2091(T)(4) defines a "Salvage Vehicle" as a vehicle that the owner or insurance company considers "uneconomical to repair". In this regard, A.R.S 28-2091(T)(4) states:

"4. "Salvage vehicle" means a vehicle, other than a nonrepairable vehicle, of a type that is subject to titling and registration pursuant to this chapter and that has been stolen, wrecked, destroyed, flood or water damaged or otherwise damaged to the extent that the owner ... or insurance company considers it uneconomical to repair the vehicle."

The statute requires that the vehicle be "other that a nonrepairable vehicle." The vehicle has not sustained any frame damage or any damage that would make it a "nonrepairable vehicle." The insurance company agrees that the vehicle is repairable, they are just of the opinion that it is "uneconomical to repair."

In terms of whether or not the vehicle is "uneconomical to repair", the statute gives the owner or the insurance company the power to make this determination. As the owner, I have determined that my vehicle is not "uneconomical to repair". However, my insurance company has determined that my vehicle is "uneconomical to repair". Therefore, there is a dispute between the owner and the insurance company over whether the vehicle is "uneconomical to repair."

Unfortunately, the statute does not define the terms "uneconomical to repair". Therefore, how is this determination of whether a vehicle is "uneconomical to repair" made? Is there a standard that is used to make this determination or is it just an arbitrary determination?

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