Can an auto insurance company total out your auto even if you want to repair it.?

I live in Texas.Ameriprise says that there is a law in the state of texas that says if the repairs are more than 80% of the car value they do not have to repair it but pay the value of the car minus deductable.They are not using the NADA value but looked for the average selling price in my area.Is this true and what value should they use?

Most of us use the term “total” in casual conversation, as in, “Man, did you hear Dinkins totaled his car driving back from the party last Saturday?” When you total something, you wreck it completely. That’s not too far from the insurance industry’s definition of a totaled car: When you total your car — or when someone else does — you cause so much damage to the car that it would cost more to fix it than what it’s actually worth.

It sounds as though your car would have to suffer some major damage in order for an insurance company to total it, but it’s actually a function of the car’s worth. Minor damage to a 15-year-old Buick might result in totaling the car, while major damage to a brand-new Saab might not. Auto insurance claims adjusters usually determine a car’s actual cash value by using their company’s proprietary database of prices.

Some companies total vehicles at 51% of its actual worth; some total at 80%. The insurance company will pay you the car’s actual cash value, minus any deductible on your coverage. Then the car goes to a salvage yard, where it’s auctioned off to the highest bidder and usually chopped up for parts. The insurance company keeps whatever money it got for the car in salvage.

Ron @ InsureMe http://www.insureme.com/landing.aspx?Refby=614506&Type=auto

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