Insurance Question help regarding cash payout options

[Euro838]

Hi all,

Hoping that the insurance guru's can chime in here. Anyways, here's the situation:

1992 Celica (Has 185K kms) involved in an "at-fault" collision. I am not sure what the other vehicle is but I heard there was some damage but not huge. Essentially on the celica, there is a dent in the front bumper say 6" in.

Other side is making a claim also. The Celica is taken in for an estimate at the estimate is ~$3100. The body shop doing the estimate makes a statement on there that it is possibly a total loss.

The insurance company is asked on what the option would be for a cash payout vs repair would be. The Celica drives just as before the damage so it makes little sense to do the repair and better to just take the money and drive as is.

Anyways, insurance company does not give option for cash payout and says that the celica must be repaired. I am wondering what possible reasons on why the insurance would not give an option for cash payout?

If there is any information I am leaving out, then please let me know and I'll try to answer so I can get a real response to this situation. Thanks.

[bart]

i think if its not your fault you can choose the cash, however if you are getting your own car fixed and you hit someone and it was your fault, your only option is to get insurance to fix your car (if you asked for cash it would be very scammy type thing)

[Euro838]

Would that also be the reason why they would not make this vehicle a total loss? I can't imagine this vehicle even worth anywhere close to the $3100 repair estimate value.

[tom_9109]

If a car was repairable, your insurer is under no obligation to pay you out for the damages. Most will however payout somewhere between 75% and 100%. In the Alberta Automobile Insurance Contract they have the option to repair the damage....

In the case of a total loss they will pay you the actual cash value of the vehicle however then have the rights to the car (salvage).

Can you PM me this insurers name?