What You Should Know About Your Car Being Totaled
If you have been in a car accident, you might be wondering if your car will be considered totaled or if the insurance company will just give it back to you and pay for repairs. Here are some things you need to know.
1. What Was The Cash Value Of The Car At The Time Of The Accident?
One question that will be asked is what was the cash value of the car, not when you bought it, but when you wrecked the car. This will help to determine if the car is worth saving or if it is better to just count the car as a loss and take the cash to buy a new car. When the cash value is determined the insurance company, not you, does it. This means that in some cases you will get more for the car or you may get less. They will calculate the value based on the current market.
2. How Much Will It Cost To Repair It?
In some cases the cash value of the car is high, but the costs to repair it are low. This means that it would still be worth fixing. So the insurance company would rather pay for the costs of the repairs than to replace the whole car. This is not a decision you will get to make. They may have you take the car to an appraiser, but usually they do this themselves so they can get a realistic estimate from a company that already accepts their insurance.
Thus, if the cash value is low, but the repairs are high, the insurance company may decide to just call the car totaled and give you cash for the car. If it is not worth their money to fix it, they will just send the car to auction and let you take cash.
3. What Happens To The Car After It Is Totaled?
Usually the car will go to a salvage yard and be auctioned off. The insurance company will usually take the money that they make from the sale and put it back toward their losses from the accident. There are many individuals and companies who will buy cars off of auctions and fix the cars on their own. This is a great option for many people and can help the insurance providers recoup their losses.
For more information, contact local professionals like Allstar Insurance.
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