Hi,
We had a total loss collision claim.
We were paying premiums for collision & comp. coverage Our vehicle had a cash value of $14k. After the accident the insurance company says the car has a rebuilt salvage title in Illinois. My car is worrth only $8600. My Oregon title is clean. I spent weeks contacting every agency in Illinois, trying to find out about the salvage title in Illinois, and not in Oregon.The Insurance company checks with Oregon DMV to find out why I have a clear title in oregon on a salvage/rebuilt title in Illinois, Oregon DMV said opps our mistake, and says send them back the clean title so they can issue a correct one. "free of charge". The insurance company finds records that the car had it's right side damaged deeming it a total loss, and was sold in a salvage auction in Illinois for $4650.
We were charged premiums to insure our good title and our $14k vehicle. Insurance company says car is worth $8600, and that they would have insured it even if we had known about the title history, and the premiums would have been the same.
I don't know of any insurance companies that offer collision coverage on a prior salvaged vehicle, and there is a difference in the costs of collision coverage between a car valued at $14k and $8600.
I want to take legal action against them, but my policy has an arbitration before legal action clause. Does this pertain only to disputes on the claim settlement? Will they be able to force arbitration if I file legal action? I live in Oregon.