Small dent on 2018 Model 3 leads to a totaled status by insurance

[JJINSD]

My 2018 Model 3 sustained a fist-sized bump above the drivers-side rear wheel. Person who backed into my stationary car accepted full responsibility.
Estimate to repair is $12,000, but I’m asking for a second quote. FMV of car is $32,000 according to the insurance comps. But get this….they tell me the car will get $30,000 at a salvage auction so according to CA law, if salvage value plus repair is > FMV, it is totaled.
By my math, that means any repair over $2,000 will mean it’s totaled. They claim the Model 3 gets a very high price at salvage auctions.
Has anyone else run into this issue? Sure seems wrong to me.

 

[drtimhill]

My 2018 Model 3 sustained a fist-sized bump above the drivers-side rear wheel. Person who backed into my stationary car accepted full responsibility.
Estimate to repair is $12,000, but I’m asking for a second quote. FMV of car is $32,000 according to the insurance comps. But get this….they tell me the car will get $30,000 at a salvage auction so according to CA law, if salvage value plus repair is > FMV, it is totaled.
By my math, that means any repair over $2,000 will mean it’s totaled. They claim the Model 3 gets a very high price at salvage auctions.
Has anyone else run into this issue? Sure seems wrong to me.

Wait, an insurance company trying to get out of paying for repairs??? My god, what has the world come to?

How can they claim the difference between salvage and FMV is only $2000?

 

[Rutgere]

A car with 12k worth of damages is worth 30k on an auction. If this is a fact then the FMV cannot be just 32K. Something does not seem to add up here

 

[AmokTime]

As a salvage it doesn’t need the repairs, so the $12,000 (which seems very high for a simple dent) doesn’t apply on that side of the equation. This does seem upside down to me, though. It would seem the insurance companies are setting unreasonable rules in order to steal people’s cars for salvage profits. Seems wasteful to me, but I guess when your only focus is profit you do whatever the numbers say.

For their customers, though it’s not always a good deal. Since FSD follows the car and is not always properly valuated by the insurance company, some people get hosed on that deal. People who bought stealth P’s also get hosed - you can’t replace that car in kind because they don’t sell them anymore. Imagine having a rare, classic car that can’t be replaced and the insurance company totals it over a small dent because they can get a lot of money for it as a salvage.

 

[RedModel3]

I've driven around for two years with a dent/scratch on the driver's door and a non-folding mirror. No functionality other than the folding has been affected. When the accident happened, I didn't even contact my insurance company, just got some estimates from the then-current Tesla approved body shops. At least $3000 and three MONTHS to fix, IF they could get parts right away. My BS meter was going off, and I walked when the guy told me it took 2-3 weeks to calibrate the sensors on the door. I've been driving for two years. Yea, the car is no longer perfect, but when it's dirty you can hardly tell there's a scratch.

Get several quotes, some from non-approved body shops. Until insurance companies catch up to our realities, it might be best to wait to fix it.

Pictures?

 

[TLLMRRJ]

My 2018 Model 3 sustained a fist-sized bump above the drivers-side rear wheel. Person who backed into my stationary car accepted full responsibility.
Estimate to repair is $12,000, but I’m asking for a second quote. FMV of car is $32,000 according to the insurance comps. But get this….they tell me the car will get $30,000 at a salvage auction so according to CA law, if salvage value plus repair is > FMV, it is totaled.
By my math, that means any repair over $2,000 will mean it’s totaled. They claim the Model 3 gets a very high price at salvage auctions.
Has anyone else run into this issue? Sure seems wrong to me.

And think how much a year you are paying to get an effective $2000 in coverage!

 

[Silicon Desert]

Just when I thought I have heard of everything about insurance companies, this comes along. Sounds really weird. I hope this company isn't the "Flo girl" on TV

 

[JJINSD]

Here’s the $12,000 dent. CA is the only state I’m aware of (might be others) that doesn’t go off a repair to FMV ratio, most being 50% or greater to total the car.
Concerning that Tesla isn’t doing anything about this. They have to know that their cars getting totaled for minor dents just so insurance companies can make money off salvage auctions and then increase the rates of the those buying insurance is wrong on so many levels!!

 

[ARKEBUS]

That estimate seem high to me.
In 2019 I had parking lot

damage to the front fender, wheel and door of my 2018 M3 repaired for about $5000.

 

[rjpjnk]

12k for that little dent? That seems almost as crazy as the Insurance company saying it’s totaled. So what is your insurance offering you if you give them the car as “totaled” at this point?

 

[gaswalla]

Rear quarter panel repair gets significantly marked up by Tesla certified locations. They disassemble the whole rear and battery as well. Not always needed, but always done at these places.

 

[AmokTime]

I had significant metal work done on the rear passenger door and quarter panel plus repainting and it was only $1900.

 

[Candleflame]

the rear quarter panel (and also the connected lower rocker panel which is just part of the quarter panel) needs A LOT of manhours to be disassembled and replaced. I think the windscreen and rear screen as well as th tiny rear window have to be removed. the battery has to be removed. its a designflaw with the car. the only way to fix this economically is to do a paintless dent repair.

I just cant understand why they made the rocker panel (which should really always be made of plastic and replaceable) part of this very expensive panel.

 

[DayTrippin]

It is a total write-off, make sure you get them to cover the sales tax as well. Many insurance companies cover the sales tax when it is total loss.

What sucks about this is any accessories you have are unlikely covered. You'll lose the value of the PPF (if you put it on) or anything else similar to that. So for some it could be a several grand loss on top. What if you had just wrapped your M3 or did PPF everywhere? That could be another 5k+ hit. This seems like a heck of a racket (scam?) that is going on.

 

[Hblick48]

My wife cut our driveway too close and scraped and dented the front lower corner on the right rear door. Also scraped the plastic rocker panel. I called 5 body shops, and they all referred me to the local "Tesla Authorized" body shop. Nobody else would work on it. I'll be picking my car up Tuesday. My wallet will be $2,000 lighter when I drive home.

For some reason, body shops are afraid to work on them!

 

[DrLOAC]

Damn, Fixing my front bumper that I scrapped on the garage is only running $1700.

 

[mattnis]

My 2018 Model 3 sustained a fist-sized bump above the drivers-side rear wheel. Person who backed into my stationary car accepted full responsibility.
Estimate to repair is $12,000, but I’m asking for a second quote. FMV of car is $32,000 according to the insurance comps. But get this….they tell me the car will get $30,000 at a salvage auction so according to CA law, if salvage value plus repair is > FMV, it is totaled.
By my math, that means any repair over $2,000 will mean it’s totaled. They claim the Model 3 gets a very high price at salvage auctions.
Has anyone else run into this issue? Sure seems wrong to me.

In that case, you will get $35k selling it private party. Would be better than getting money from insurance.

 

[Black306]

If you’re looking to have the car salvaged (which it doesn’t sound like it), SWEET!

If not, have you considered paintless dent repair? Personally, I’d rather keep an original rear quarter panel if it could be saved.

 

[gearchruncher]

All this discussion about cost to fix, etc...
Look up comps. Can you really buy the *exact* config of your car (including software options, sales tax, mileage, color) for $32k?
If so, that's a fair price. You take $32K and buy a replacement.
If it's higher than that, what you push the insurance company on is their FMV estimate. Eventually they will realize that it's cheaper to fix than it is to buy the car from you.

 

[SMAlset]

OP here’s a decent salvage auction website you can watch current bids on if your interested.

Tesla Salvage Cars for Sale

Salvage Tesla Cars for Sale. Over 150000 repairable vehicles or vehicles for parts at Copart. Register today to join the live salvage auction at SalvageReseller.

www.salvagereseller.com

The car I had before my Model 3 was a 17 yr old Avalon which had been long paid off still in decent shape and ran well apart from AC issues but it was rear ended while all stopped at an exit ramp from shopping center (lady thought traffic had started moving!). Wasn’t ready to buy new car, my AWD LR version wasn’t in production yet and I really didn’t want to buy something I didn’t want to own. Insurance came in close to totalling it and could have gone either way if I pushed. Decide to have it repaired and body work (trunk frame had to be cut and welded) took like a month or more but they did a nice job and had it to use until my Model 3 could be delivered. Only got $1K for it where had it not been damaged might have got $3-5K for it privately from comps I saw at the time. So keep that in mind if you decide to keep (maybe file a diminished value claim).

Consider your options.