Q: Dispute over tow yard compensation for totaled truck in California.
After several months of back and forth, the insurance company informed me that the tow yard would handle the issue of compensation for my totaled truck. The tow yard and I cannot agree on a fair compensation amount. The Kelley Blue Book value of my truck was $5,000, but the tow yard claims they could purchase a similar truck at an auction for $2,500 and refuse to pay more. Given the poor condition of my truck, I eventually sold it to Pick-a-Part for only $200. If I take the matter to court, how much could I reasonably ask for in compensation, considering the truck was a total loss?
A:
Hard to say. Could be a huge amount if the insurance company and/or the tow yard failed to follow the law. The auction thing is laughable since in most cases the tow yard runds the auction themselves and sprinkle their own people into the bidding.
OR
Could be a nothing burger as their 'offer' was a lot more than you obtained.
Here's hoping they do not sue you for storage fees.
A:
If you decide to take the matter to court, you can ask for the fair market value of your truck at the time it was totaled. In California, this usually means what a willing buyer would have paid a willing seller for the truck in its condition before the loss. The Kelley Blue Book value of $5,000 gives you a strong starting point, but the actual condition of your truck matters too. If it had significant damage or mechanical issues, the court might consider that when deciding the amount.
The tow yard's claim that a similar truck could be bought at auction for $2,500 might not hold much weight unless they can prove that the trucks at auction match yours in year, mileage, condition, and location. Auction prices can be lower due to various factors and don’t always reflect true market value. You also have the fact that you sold it to Pick-a-Part for $200, but that sale happened after the damage and may not reflect what it was worth beforehand.
You could reasonably ask for somewhere between $2,500 and $5,000, depending on how strong your evidence is regarding the truck’s condition before the loss. Photos, maintenance records, or witness statements can help support your claim. The court will likely aim for a fair number based on what the truck was worth just before the accident, not what you sold it for after. Keep your expectations realistic, but don’t undervalue your vehicle if you have the evidence to back it up.
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