Everything you ever wanted to know about what it means to “total” a car, what a salvage title means, and how to deal with insurance companies
Around here the insurance companies got the state to pass a law that FORCES them to “total” the car if the repair estimate exceeds 75% of book value. Estimates are just that, and body shops can “find” more stuff that has to be fixed that couldn’t be seen from the outside at the time of estimate after they already have half the work done and the insurance company is already on the hook.
So, that law protects the insurance companies from that liability. Those of us who take excellent care of our old Volvos are the ones who get screwed in that case – sort of. It doesn’t have to be too bad. If it still drives you can just take a check from the insurance company and the state will issue a salvage title and you can spend that money however you want to whenever you want to.
If you make a big enough stink about it with the insurance adjusters and demand to talk to their supervisors about how well you maintained the car and drag it out over several inefficient phone calls they w ill get tired of the case and give you $300 more than their “final” offer just to get you to shut up and go away. Don’t worry about them trying to keep the car. They don’t want it.
E Showell »
Wife’s 850 Wagon was totalled this past Summer. Car was perfectly driveable. I bought the “wreck” back from the insurance co. for $75.00 and sold it with a salvage title for more than 10X that to a neighbor. Probably could have gotten 12-15X more in the open market. Replacement V70 has 60,000 fewer miles on it and is three years newer. Downside, had to put a new timing & serp. belt in the new ride.
If you are going to negotiate with your insurer about buying the “wreck” back from them after totalling, be aggressive. I was surprised that the opening offer from my insurer was $75.00 and I jumped on it, but it could easily have been worth it to buy it back if the offer was even $500. Remember this — you have a 15 y/o car that is damaged. At auction to a wholesaler, the insurer won’t get much for it. More hassle than it is worth for them to dispose of it really. Keep this in mind during any negotiations to buy back you car from the insurer after totalling. You’ll have even more leverage if you are in a part of the country where Volvos aren’t too common.
If the insurer seems inclined to total the car it is worth doing a bit of research to find out what a similar car would cost you — ebay, craigslist, autotrader, etc. — and print a few of them out. Same year, engine, options, mileage, condition, etc. Also do an Edmunds and Kelly Blue book rundown on your car’s value. Have all of these numbers handy when speaking with the insurance co.
Also worth doing a bit of research into your state’s insurance regs. and law. In N.J. where I am, in formulating its settlement offer, the insurer must keep in mind that you are a retail customer and therefore cannot use wholesale prices in their valuation anaylsis. In N.J. a claims settlement check must enable you to buy a similar vehicle (including sales tax) within 30 miles of where your vehicle is principally garaged.
As the insurance company what database or databases they used to come up with the quotation — autosource, if I recall the name correctly — is notorious for lowballing vintage Volvos. Tell your insurer this. Ask to see any comparable vehicles they are using for their estimate including the VIN numbers and the area dealers (complete with contact info) at which those vehicles are currently available for purchase. That shut my insurer up pretty quickly.
Do not accept the insurance company’s first offer — they will almost always low ball you — stick to your guns, be persistent, and ask for their valuation sources — including sending you copies of the documents they relied on. You should be prepared to send them the documents you relied on — Edmunds, Kelley Blue Book, ebay, craigslist, autotrader, etc.
Mention your complete service history and meticulous record keeping w/r/t the vehicle, etc.
Do not let the insurer wear you down. Stick to your guns. Be firm and polite, but stand your ground. You can almost always get them up and sometimes substantially. Opening offer for wife’s vehicle was less than 2K from the ins. co. of the person who hit her while parked and the vehicle was unoccupied (Allstate — notoriously bad claims handling) — and that was for a “repair” when they refused to total it. Insurer wanted to straighten a panel which my body shop said could not really be straightened. We still had collision on the car, so I said F’ that and filed a claim with my own carrier who ultimately valued a base model 1996 850 Wagon at more than twice Allstate’s “repair” estimate and pursued Allstate for the payout they made to me. Allstate promptly paid my deductible as well.
If you are in N.J. I can give you some pretty specific advice including citations to the applicable section of the New Jersey Administrative Code (N.J.A.C.) relating to insurance claims settlement obligations of insurers in the event a total loss is declared.
1995 850GLT: Front end Accident, its totaled
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Last Updated on July 15, 2026
