Legal Question in Insurance Law in California

My mom made a claim for a car accident that happened last month (she was not at fault.) The damage was merely COSMETIC and was estimated at $2500-2800. Her car insurance company valued her car at $1800, and disregarded a letter she sent them about 4 similar cars that had recently sold for $3500-5500. She included the vehicle identification number of each of those cars. Instead of acknowleging the higher values, they ignored her letter, changed her title to "salvaged" with DMV, and mailed her a check. She will be sending the check back.

Can they legally bully someone into taking an offer?! She has signed no documents at all. But could they tow her car just because they've sent a check?!What can she do to stop this salvage process? Can she close the claim and have the salvage title removed?


Asked on 4/21/11, 6:09 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

The simple answer is no. Make copies of all documents/check, she can write a letter stating she refuses the settlement offer and demands the insurer place title back in her name and remove the salvage label. She can get an auto trader/internet ads for similar vehicles. Insurers go by a percentage of retail value for determining a total loss, around 75% or so. They use companies that do this by a computer program. So your mom can fight this, but she should always write letters and document just what she is doing. And she can also tell the insurer she is willing to keep this check as partial payment, but if it does not agree in writing, she will return it. If this persists, get a lawyer as this could be a bad faith claim. Good luck.

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Answered on 4/22/11, 11:07 am


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