What Happens When Your Car Is Totaled
Getting in a car accident is pretty nasty and can end up with serious car damage and injuries. There are many cases when the car is damaged beyond repair or the repair costs will be too high. When is no longer possible to repair or it does not make sense, a car is considered totaled. That’s one of the worst nightmares of any driver. When this happens, makes sure to inform the local DMV and your car insurance provider. Find out more about what happens when your car is totaled and visit our website for free online auto quotes.
The first thing to do is to make an insurance claim and bring the damaged vehicle for inspection. The car will be brought to a body shop where the repair and labor costs will be evaluated. If the estimated costs are higher than what the car is worth, it will be considered a total loss. The actual cost of the car will be determined after analyzing a series of factors including age, condition, mileage and resale value, plus the selling price of similar vehicles in your area.
If the car is declared totaled, the insurer owes you the actual cash value (retail market value) of your totaled car. If you and the insurer can’t agree on retail market value, the insurer must follow the total loss rules outlined in state regulations. The insurer can provide the following solutions for determining the car’s value:
- Offer to replace your car with an available and comparable car in your local area.
- Offer you a cash settlement based on the actual cash value of comparable cars in your local area.
- If you and the insurer agree, the insurer may use other appraisal methods, such as independent auto-value guides.
You can also hire an appraiser and let him determine the costs. If the other person’s at fault and you can’t agree with his insurer on the value of your car, and you have your own collision coverage, you can use it to file a claim with your own insurer. Your insurer will then pay you for the loss of your totaled car. Then, your insurer is then free to pursue the at-fault driver for reimbursement, including any deductible you paid.
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