Comments on: Do auto insurance companies receive money for taking older vehicles off the road?

By: mbrcatz17

mbrcatz17 — Sat, 07 Feb 2009 04:59:58 +0000

No, they don’t.

By: CwboyBill

CwboyBill — Wed, 04 Feb 2009 02:29:25 +0000

This is ridiculous — older cars are totaled more often because they are worth less on the open market and NO — there is no secret state run operation that pays insurance companies to ‘get’ old cars off the road.
Damn.

By: Maricel S

Maricel S — Sun, 01 Feb 2009 17:38:25 +0000

No, they don’t get paid for getting older cars off the road. They total cars if the cost to repair them reaches or exceeds a certain threshold (usually 70%) of the actual market value of the vehicle. Most older vehicles are not worth the repair cost it’s going to take to get it back in a pre-accident condition so they total it.

By: oklatom

oklatom — Thu, 29 Jan 2009 15:47:16 +0000

No, they only get paid when you pay your insurance bill. Older vehicles are worth less and often the repairs are more than the worth of the car. It wouldn’t make much sense to do $1,000 worth of work to a $200 car after all.

There is no conspiracy here between the state and insurance companies.