Source; https://wethepeopleusa.ning.com/forum/topics/be-aware-of-vehicle-insurance-policy-details
Readers with vehicle insurance might want to read the following carefully and check to see if what happened to us could happen to them. Check out your vehicle insurance to see if your company has the same policy/rules.
Earlier this year my wife's truck was stolen from her job. It was quickly spotted by law enforcement and a chase ensued wherein the truck suffered moderate body damage but was recovered and the thieves arrested.
The truck runs great and is on track for the body repair.
Our insurance was with Nationwide who declared the truck "salvage" (i.e., totaled). It took me awhile to figure out why when the truck is so repairable. Declaring the truck "salvage" let Nationwide seize ownership, forcing us to buy it back and receive a reduced insurance payout. We ended up with a check, minus the salvage declaration and the $500 deductible.
Nationwide's stated policy is that if a vehicle has enough damage, they automatically declare it "salvage", seize the vehicle, and sell it for salvage themselves, keeping the money reducing the insurance payout. Meanwhile, the customer (paying for full coverage) is paid significantly less than the coverage they paid for.
Plus, Nationwide dropped the truck from our insurance, forcing us to get separate insurance for the truck.
Multiply our experience with Nationwide to the tens of millions of vehicle insurance customers in the country. Given that our experience is standard Nationwide policy, we're talking about MILLIONS of dollars Nationwide (and other insurers?) are getting from customers who are NOT getting what they thought they were paying for.
So much for, "Nationwide is on your side".
Nationwide also reported the truck to the State of Kansas as "salvage". The "salvage" declaration forced us to retitle the truck as salvage, have it repaired, get it inspected, retitle it again as roadworthy, and buy new tags and registration before we could legally drive it.
We feel like we were victimized three times: First by the thieves, then by Nationwide, and finally by the State.
Bottom line: All Nationwide had to do was just send the check and nothing more. Problem solved. We would decide if we wanted to sell the truck as salvage or have it repaired. Our call; not Nationwide's.
I tried repeatedly to communicate with Nationwide and their adjuster but only received emails confirming the "salvage" declaration. As a result, we are dumping Nationwide for our other vehicles, property, and home.
I hope readers will take a hard look at their vehicle insurance so our experience does not become their experience.
Oren Long
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