How does it work if an Auto Insurance company ads value to your total loss car from recent repairs?

[emmalove]

If I have recently done repairs to a car that is declared a total loss and the insurance company increases their total loss offer for it due to that, can I still keep the car and the higher valuation (minus the scrap value) or do I also lose the added value for the repairs since I'm keeping it?

If I were to take those new parts off the car and swap them with another car (before the total loss vehicle is taken to the scrap yard), would I still be able to retain my higher valuation/payout for the car?

Edit: I'm asking about in the context of having the approval of the insurance company and how they would react, not doing these things secretly.

 

[peinopela]

@emmalove You’re technically talking about fraud in your second paragraph.

 

[emmalove]

@peinopela I've been told, in general, and by several people, that I can swap parts out on the car before it goes to the scrap yard as long as I replace them with the same parts, as the scrap yard doesn't pay more for "newer" parts, they pay the same no matter what and don't care. Basically I can't just take the transmission, or the seats, or the visors etc unless I put replacement ones in the car. Or is that totally wrong?

 

[peinopela]

@emmalove That might be true. From a technicality perspective it would be insurance fraud.

It’s funny because your post reminded me of something from 8 years ago, when my Corolla was a total loss. I remember going to the car to grab my belongings, and I grabbed my factory-installed floor mats out. Little did I know, I was technically committing fraud!

At the end of the day that’s obviously a preposterous thing to say, and I would say the risk for genuine “fraud” to be a concern to you is little depending on how far you go. I’m not at all advising you to do what you want to do here, but simply giving you both an objective/factual answer, and an informal one.

 

[emmalove]

@peinopela So, from your perspective, who would I have to get approval from to swap the parts out for it to not be fraud? And in that event, do you think the insurance company would devalue their offer to me based upon the value of the parts even if the scrap yard didn't care?

 

[realsavior]

@emmalove You get the higher value minus the salvage value if you choose to keep it. You do not get the higher value if you strip the car of the improved or Aftermarket parts and let the insurance company take it. Also, if you remove a transmission and do not replace it with a working transmission, you would get a pretty big deduction if not a report to SIU for fraud.

 

[emmalove]

@realsavior I'm not asking about doing these things in secret, but with approval from the insurance company.

Aren't they supposed to reimburse you for the value of the car at the time of the accident? I don't think removing a working transmission and shoving a non working transmission in the trunk would lower the value of the car as it relates to how much the scrap yard is willing to pay for it as I'm pretty sure they don't ask such detailed questions when offering $1k for a scrap car.

Swapping those parts out might seem odd, but I confirmed that course of action with the body shop and they assured me that as long as there is a part in the car that matches the part removed (but possibly different functionality etc), that that was acceptable to the scrap yards when the cars are scrapped. I understand they may have been wrong, but that's partly why I'm asking.

 

[realsavior]

@emmalove What you are proposing is illegal and fraudulent. I've had customers take off aftermarket parts and replace with stock and then they only get credit for stock, but also, the parts have to be on the vehicle as intended and not shoved in the trunk. Also, a transmission that works could be parted out and sold by the salvage company, so you're short-changing whoever might buy the vehicle as salvage.

 

[emmalove]

@realsavior But, how would it be illegal or fraudulent if I do so with the approval of the insurance company?

If the scrap yard offers the same amount for the car regardless of the damage, then would it really matter, even as it related to the scrapping?

 

[realsavior]

@emmalove So long as you put the parts back on the car and you advise the insurance company that the transmission and any other part that doesn't work, doesn't work, do what you will, but be completely transparent and honest; however, you don't sound like the type.