What to Do When Your Car Gets Bumped into and Damaged?

In situations where your car gets bumped into and sustains minor damage such as a dent, the immediate question often arises about what to do with it. Insurance companies might suggest scrapping the car or obtaining a salvage license to recoup the expenses involved. However, if your car is still fully functional, there are other options available. This article guides you through the steps and considerations when dealing with a damaged car.

How Much Do You Owe on the Car?

The first and most crucial question to answer is, How much do you owe on the car? The total outstanding balance of your loan or lease will significantly influence your options. Before proceeding, it is imperative to clarify your responsibility by:

Contacting an insurance representative to understand the extent of your liability. Checking your current loan or lease payoff balance. You can usually find this information on your lender's website or by contacting them directly. Reviewing the estimate for repairs. It’s crucial to have a comprehensive understanding of the repairs needed and their associated costs.

Understanding Salvage Titles

Inspecting the damage and determining whether a salvage title is applicable is another important step. If your car only has minor damage, such as a dent, it is highly unlikely to be deemed a total loss. Still, if a salvage title is necessary, the next step is to obtain a reconditioned title. In many states, this process involves receiving a salvage title, then having the vehicle inspected by the Department of Motor Vehicles (DMV) or a similar agency, and receiving a reconditioned title. In some states, this process might use different terminologies, such as 'reconditioned' or 'rehabilitated'.

For example, in Nevada, getting a reconditioned title after receiving a salvage title, the total cost of the inspection and paperwork ranges from $50 to $100. Be sure to check your state's specific regulations to ensure compliance.

Legal Options and Negotiations

Exploring legal options might be beneficial in certain situations. If your car is significantly damaged, a lawyer might be able to negotiate a better deal from the insurance company. A lawyer can provide legal advice and potentially help you recover more from your insurer. According to Michael Custer, in his experience dealing with a similarly damaged car in Nevada, he successfully negotiated additional compensation for his client. However, the exact approach might vary depending on the severity of the damage.

State-Specific Regulations

The specific regulations regarding salvage and reconditioned titles vary by state. In Oregon, a car with a salvage title cannot be registered for road use again, so a reconstructed title is a viable alternative. In many states, a salvage title only allows the vehicle to be sold to a wrecking yard or have the remaining parts removed and sold individually.

Conclusion

When faced with a damaged car, consider these key steps and factors:

Check your loan balance. Get an estimate for repairs. Understand the implications of a salvage title in your state. Explore legal options if necessary. Check state-specific regulations.

By taking these actions, you can make an informed decision about the future of your car. Whether you opt for repairs, a salvage title, or a reconditioned title, ensure you act within the guidelines of your state's regulations to avoid any legal complications. For detailed state-specific information, consult a local DMV or legal professional.