Auto Insurance Forum

April 20, 2007

I was in an accident last week and my vehicle was totaled. The other party was at fault. In the last four months I have put almost $4,000 into my car for a new transmission and bearings and other miscellaneous items. The vehicle was in outstanding condition both mechanically and aesthetically. Should the insurance company reimburse me for some of the recent repairs I have made?

Brian, Missouri

Dear Brian,

You shouldn't expect the insurance company to compensate you for the recent repairs you made to your vehicle because the insurer looks at the overall value of your vehicle rather than the money you have put into it. The insurance company may consider your vehicle to be somewhat more valuable since you made improvements to it, but you should not expect the insurer to reimburse you for the full $4,000 worth of work you had done to it.

There are many variables that insurers use to determine the value of your car, such as miles driven, pre-accident condition, special equipment installed into your car, and your local market conditions for your vehicle.

For more information, read Total warfare: What to do when your auto insurer totals your car, Recouping expenses after your car is totaled, and Dealing with another driver's insurer when a crash is not your fault.

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