When your car repair gets rejected by the insurance company, it typically signifies that they’ve assessed the repair expenses to be excessively high compared to your vehicle’s market value. This situation usually arises when the damage is so extensive that repairing it in a cost-effective manner is not feasible.
Weighing Up the Costs
This determination is often made when a mechanic or body shop concludes that the remaining value of your car doesn’t justify the time and financial investment required for repairs. Receiving a “rejected repair” diagnosis implies that the damage to your car is likely beyond economical repair (BER). In such cases, accepting the recommendation for proper disposal methods for your vehicle is often the most sensible course of action.
As previously mentioned, insurance companies generally approve payouts only for damages that were not a result of intentional neglect or theft. The damage might stem from manufacturer defects leading to accidents, inadequate vehicle maintenance by drivers, or collisions with other vehicles. Regardless of the cause, the damage must be significant enough to render repairs too costly, potentially exceeding what the insurance company would pay out for a total loss replacement. Essentially, they are comparing the cost of repair against the car’s pre-accident value and deciding repair is not economically viable.
Why Might My Car Be Rejected for Repair?
Several reasons can lead to a repair rejection for your car. If the repair cost surpasses the vehicle’s market value, the insurer might declare it a write-off. This “rejected repair” scenario commonly occurs due to factors like:
- The vehicle is no longer roadworthy: This means it doesn’t meet the safety standards defined by the Department of Motor Vehicles (DMV) or relevant vehicle safety authority in your region.
- The vehicle is unsafe to drive: Even if technically roadworthy, the damage might compromise safety, making it dangerous to operate.
- The vehicle is not economically viable to repair: If repair costs are disproportionately high compared to the car’s worth, it simply doesn’t make financial sense. For example, spending $10,000 on repairs for a car valued at only $3,000 would be uneconomical.
Do I Have to Keep Paying My Insurance?
The subsequent steps for salvage cars depend on vehicle ownership and the cause of the write-off. If the driver was responsible for the incident leading to the write-off, they typically remain responsible for insurance and registration fees until the vehicle is properly disposed of.
Conversely, if a third party was at fault for an accident resulting in your car becoming salvage, you might be entitled to compensation. In such instances, your insurance company will seek to recover their expenses from the at-fault party and then provide you with any remaining balance after settling all associated costs, including outstanding finance agreements or loans on the vehicle.
For further guidance on navigating a rejected repair situation and understanding your options, it’s advisable to consult with your insurance provider or seek expert advice from automotive professionals.
