Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jun 15, 2013

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Insurance Question from Bothell, WA

Asked on 06/15/2013

Total of a car When ? Ok I have a 2001 subaru legacy L wagon 4 speed automatic with about 192,000 I just bought the car on Thursday and was hit by a hit and run driver so there is no insurance for my company to hold responsible my company allstate gave me a bid to fix of $1900-$2100 dollars , my bid is almost $3300.00 I paid about $4395.00 but after payments for 12 months it will be almost $6K so when is the time where we all realize " This is too much money to put into a car that will be 13 years old ? Is there a formula ? heres what I used , taking the $3300.00 est , 70 % of that is $2200.00 added to the $4395.

Answer given on January 04, 2014

If you have a bid of $3300 to fix the car, you should have your shop call the adjuster to work out the repair costs and where they differ. If the $3300 is too high for the company, they will probably total out the car and pay you the value less your deductible.If your car is considered a total loss due to an accident, the insurance company will determine the actual cash value of your car. This does not always match what you may have paid for the car. The value is determined by the company using the Kelly Blue Book, Gold Book and/or local ads for a similar car.If the insurance company feels the cost to repair is too close to the value of the car, they will offer to take the car as a total loss.Whether or not the repair is worth it is something you have to decide, but you also have work everything out with your insurance company to be sure they agree to total it and not repair it.


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