Crossfire write offs
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From: Ontario
Crossfire write offs
I think this is why Crossfires and other cars are written of with seemingly low damage done to them. I am ignoring those cars that suffer bent chassis, although the same may apply to some of them but less so.
Insurance companies are not benevolent societies that have your best interests at heart, they are in the business of collecting your money and keeping as much of it as possible.
When we have a car that is low in resale value but if dismantled and sold in parts can generate a relatively high price, but not necessarily more than its street value. Now if that car is worth say $10,000 suffers $7,000 damage, we might say that the company will pay to get it fixed. Hold that thought, but if they kept the wreck(?) sold it for $4,000 and gave you $10,000 they would only pay out $6,000. Even if the car had $6,000 of damage and they sold the car for $4,000 and still gave you $10,000 the company would have the case closed in a short period with no costs for adjustor's and time wasted haggling with the car owner. the quicker the file is closed the better.
The cost of fixing cars even for relatively small dings is high, labor is a killer and paint and supplies are expensive, couple that with hard to find parts and the time and cost of shipping them it all adds up.
Cars with less damage would get more as a wreck so this would be a better deal for the insurance company.
Which way do you think they would tend to favor as a solution. Your premium will still go up if they can raise it, after all it's your money they want, not your thanks.
All my figures are just to illustrate the theory.
Insurance companies are not benevolent societies that have your best interests at heart, they are in the business of collecting your money and keeping as much of it as possible.
When we have a car that is low in resale value but if dismantled and sold in parts can generate a relatively high price, but not necessarily more than its street value. Now if that car is worth say $10,000 suffers $7,000 damage, we might say that the company will pay to get it fixed. Hold that thought, but if they kept the wreck(?) sold it for $4,000 and gave you $10,000 they would only pay out $6,000. Even if the car had $6,000 of damage and they sold the car for $4,000 and still gave you $10,000 the company would have the case closed in a short period with no costs for adjustor's and time wasted haggling with the car owner. the quicker the file is closed the better.
The cost of fixing cars even for relatively small dings is high, labor is a killer and paint and supplies are expensive, couple that with hard to find parts and the time and cost of shipping them it all adds up.
Cars with less damage would get more as a wreck so this would be a better deal for the insurance company.
Which way do you think they would tend to favor as a solution. Your premium will still go up if they can raise it, after all it's your money they want, not your thanks.
All my figures are just to illustrate the theory.
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