Q: How to maintain clean title after fender-bender under MD law?
On January 17, 2025, my car was involved in a fender-bender caused by a neighbor changing lanes abruptly. My car, a meticulously maintained 2005 Lexus IS300, suffered damages including the fender, bumper cover, and headlight, but is otherwise in excellent condition. Unfortunately, my neighbor’s insurance was not active at the time of the accident, so I filed an uninsured motorist claim with my insurance company, State Farm. They assessed that my car is a potential total loss, offering an actual cash value (ACV) of $9333, which I believe is low. I've invoked the appraisal clause for a fair-market-value assessment, expecting it to show a much higher value. State Farm has estimated the repair cost to be $4896, already less than 75% of the initial value estimate, and likely to be significantly lower than what the certified appraisal will conclude. I plan to keep and repair the vehicle. State Farm insists on issuing a salvage title, but according to MD Transportation Code § 11-152 (2024), a salvage title should not apply when the repair costs do not exceed 75% of the vehicle's fair market value, especially as I retain possession. How can I ensure my insurance company complies with this law to maintain my vehicle’s clean title?
A: Very few personal injury attorneys handle property damage only claims because of the economics involved. (It's not enough money for the work involved.) Search for an attorney who deals with property damage claims. Good luck.
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A:
It seems like you're in a situation where you want to avoid having your vehicle branded with a salvage title, which is understandable given the circumstances. According to Maryland law, a salvage title is not required if the repair costs are less than 75% of the car's fair market value, as you’ve pointed out. Since State Farm has assessed the repair costs at $4,896, which is well below the 75% threshold, you should be able to maintain a clean title.
To ensure your insurance company follows the law, start by referring to the specific statute you mentioned—MD Transportation Code § 11-152 (2024)—and explain that, based on the repair estimate, your car does not meet the criteria for a salvage title. Since you are invoking the appraisal clause for a fair-market-value assessment, make sure to have the certified appraisal report in hand to show that the car’s value is indeed higher than the insurance company’s estimate.
If State Farm insists on issuing a salvage title despite your efforts, you can escalate the issue by filing a complaint with the Maryland Insurance Administration. In some cases, you may need to consult with an attorney to help you navigate the situation and ensure your vehicle’s title remains clean. Keep all documentation, including your communications with the insurance company and the appraisal report, to support your case.
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