Getting into a car accident is a terrible ordeal, but it’s even more frustrating when the insurance company deems your car as totaled. If you’re not privy to how the process works, your main question might be, ” How do you know if a car is totaled?”
Well, that decision is based on a number of different factors. Continue reading to learn more about how a vehicle becomes totaled.
How Do I Know If a Car Is Totaled?
You’ll have a totaled vehicle when the cost of repair exceeds its value. The laws that define a totaled car are different from state to state. For example, in some states, you have a total car when the expense of the repair is more than 75% of its value.
Let’s say the car is worth $6,000, and the estimated repair cost is $5,000—the insurance will consider it totaled.
The good news is, having collision or comprehensive policies could help to replace a totaled vehicle. Comprehensive and collision coverage is mandatory on car insurance policies for leased vehicles.
However, if your car has no lease, then comprehensive and collision coverage are optional. Unfortunately, if your vehicle is totaled and you don’t have additional coverage, then you may have to pay out of pocket to buy another car.
What Is a Total Loss?
Some car accidents only cause minimal damage, and you can still drive your vehicle. For instance, your car might require frame repair to fix the portion of the car that’s smashed in. Even though the vehicle is still driveable, your insurance might label it as totaled because of the repair costs.
On the other hand, a total loss generally happens when the car cannot safely undergo repair. For severe accidents resulting in a crushed hood or lots of destroyed framework, that’s considered a total loss.
Also, in some situations, if the airbags deploy, that might be a total loss as well. However, your insurance adjusters can evaluate the damage and decide whether or not replacing the airbags would exceed the cash value of the car.
The Steps After a Car Accident
If you are in a vehicle collision, then the first step is to call your insurance agent and make a claim. Next, your insurance provider will decide if the vehicle is a total loss.
Lastly, the insurance company will send a payment for the cash value of the total vehicle minus the cost of your deductible for your comprehensive and collision coverage.
Understanding Car Damage
As you can see, there’s a lot that goes into play when deciding if your car is a total loss. Just remember that you have the option to pay for your car out of pocket if you would rather do that instead of purchase a new vehicle.
Did this article answer your question of, ” How do you know if a car is totaled?” If so, keep browsing our website to get educated on more informative topics.