Legal insights and tips from the veteran Attorney of 40 years.
AUTOS: THE LATEST AUTO INSURANCE SCAMS
The auto insurance industry never ceases to amaze me with the tactics they use to cheat their customers. Some examples are:
A. Deductibles on
your PIP or not paying full amount of medical bills;
B. Reconditioned or aftermarket Chinese parts to repair your car;
C. No rental car;
D. Do adjuster present, send
photos to evaluate damage;
E. Designating
where you have to have vehicle repaired.
In the past, the insurance company routinely paid for towing and storage. To reduce these fees, they wanted to get your vehicle to their lot as soon as possible. Now, they will offer you a settlement close to what your vehicle is worth, but they offer no loss of use and advise that you will keep the vehicle, obtain a salvage title and be paid when you present the insurance company with a salvage title.
Many insured are being tricked with this ploy. First, you are paying the tow and storage fees. Second, to obtain a salvage title in Kentucky means that you repair the vehicle, have the vehicle inspected and approved by Frankfort.
In effect, with no money from the insurance
company, you are rebuilding your vehicle or having a body shop do
same. The salvage title rebuild process is as
follows:
You will need:
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Salvage Ky Title or Out of State Salvage Title
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Form TC 96-353
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Form TC 96-215
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Form TC- 182
For Form TC 96-353 – Labor Statement
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Who ever does repair work on the vehicle must fill this out, sign, and have their signature notarized.
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Keep all receipts related to the repair even if its just replacing a light bulb, everything will be scanned into the Rebuilt section in Frankfort and if there are no receipts it causes the rebuilt to be rejected.
For Form TC 96-215
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The owner must fill this out, sign and have their signature notarized.
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In the marked section on this form, fill this out only if you have used parts from another vehicle. You must have the VIN number from the vehicle the parts have been used.
Form TC 96-182
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This must be filled out in the Highlighted areas; the owner must sign and have their signature notarized.
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The vehicle must have a sheriff’s inspection before it can be scanned.
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Once the inspection is done the owner will bring all the forms and title to the clerk’s office and present everything to a deputy clerk. The deputy clerk will scan the paperwork and email the rebuilt section in Frankfort with title and VIN number. As of right now it is at least two months on rebuilt title approvals.
Out of State Salvage titles are a little different. Salvage titles cannot be tagged or driven until the approval is processed in the County Court Clerk’s office. If you unwisely want to take this route, talk to your County Court Clerk. The other option that is sometimes offered is to obtain a junk title; but, you still pay the tow and storage which can be very expensive. This not a fair deal, you need to be paid the fair market value for your vehicle, rental car or loss of use and they pay the tow and storage.
- David O.Smith
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Please Note: David Smith, Marcia Smith are independent attorneys with individual areas of practice.