A car collision doesn’t always damage your car all the time. It also creates a significant amount of emotional and mental effects. However, after a car collision, your car damage is totaled, it can make a very upsetting environment.
After colossal damage to the vehicle when your car is totaled, it’s sure that you are not getting that car back in its previous state.
Sadly car totaled is a massive loss for a vehicle owner; because the repairing costs cross the entire vehicle value. After the accident, every one of the five cars declares totaled a car.
Totaled a Car Explained
Totaled a Car, or total loss means the vehicle’s entire worth exceeds the car as the absolute value. In easy words, if your car is damaged and the repairing cost is more than the vehicle’s price.
For easy math purposes, suppose your car’s worth is $20 thousand, and the repairing estimates come at $25 or 30 thousand dollars, which is way more over than your car’s total value. The car insurance provider will not pay you if the repairing cost exceeds, so at a certain point, they will determine that your car is a total loss, and they will handle the insurance payment as a loss project.
Insurance companies have estimating software for measuring the repairing cost of a damaged car. They don’t only rely on the software all the time, but they also follow the body shops for writing the estimate.
After your car damage, the insurance providers will click some pictures of the car and ask you about the parts that need to replace or repair. After that, they will line item the estimate, and as a consumer, you should ask for a copy of your estimate from your insurance company. At a point, they will compare it to what they think about the value of your vehicle is worth. Usually, insurance companies use various sources; different companies use other databases to determine the car’s value.
Once the car is declared totaled, your investor might owe you the total amount of the car’s value; it depends on your insurance policy’s clauses. The insurance issuer will measure the amount by considering your car’s :
01. Driving Mileage
02. Vehicle age
03. Current Condition
04. Manufacture date and Model
05. The current value of the parts
06. Possibility of unseen or future damages, such as alignment problems, leaks, etc.
07. The current demand for your vehicle in the present market.
The car’s actual market value depends on the market condition, replacement cost value, and demand. Sometimes Insurance companies don’t offer replacement cost as an option.
Does Your Insurance Coverage Is Enough For Your Totaled Car
If your insurance company totals your car, it will cover with Comprehensive and Collision coverage. If you have a car on loan or lease, these two insurance coverages will be required. Legally you don’t need to take these insurance policies. It depends on you whether if you want to stay on the safe side of the deal or not. The insurance policies protect you from different vehicle damage situations. There are different laws, according to other states in the USA. Most of the states have liability coverage in their requirements. But if you have crashed the car by your fault, you might not have to pay the liability payments though you have to replace the vehicle from your pocket.
Comprehensive and Collision Coverage
Comprehensive insurance is something that covers your damaged vehicle in anything unless a collision. On the other hand, collision coverage helps overcome your damages during a car collision with another car or any particular object/property.
Sometimes, the car insurance company could not cover your claim when your car total in an accident. There could be multiple reasons for your claim cancelation.
01. Unfit for the required criteria for coverage claim.
02. Unpaid Insurance Premiums
03. Intoxication while driving.
04. Reporting late to the insurance issuer after car damage.
05. Filing a fraudulent insurance claim.
Each of the insurance policies proving companies have their version of criteria for the ownership of totaled a car.
You should follow a few things before claiming for totaled a car.
Before the insurance company pays your claim, make sure you have already paid the deductibles.
If you find your car’s worth more than the insurance company’s proposed amount, try to negotiate the price with the company and seek common ground. Insurance service providers would try to cut their losses, but you have to get the best price for your vehicle.
After you get your coverage claim, the issuer company would try to sell the damaged vehicle’s spare parts. IF you want to keep your car’s spare parts, you can notify your service provider; If your state allows you to keep spare parts of totaled a car, then you can keep them. Your insurer will subtract the spare part amount from your payout.
In case of loan payments on Totaled a car
Most insurance experts recommend continuing the payments or installments of your loan or lease on the car, whether you can’t drive the car for an accident. Your insurance claim could get affected by payment irregularities.
Once your financer gets your totaled vehicle’s claim, but the share is not equal to the actual money you owe on the car.
In these situations, gap insurance works very well for covering the money. Suppose your car’s claim coverage is $15 thousand, but your financer owes you 20 thousand dollars. Initially, there is a gap of 5 thousand dollars. If you have gap insurance, then you have no worries, but if you don’t, then you have to deal with it from your pocket.
According to insurance policies, gap insurance usually covers up to 5% of your annual premium payment.
Car totaled situation could put you in a difficult situation; you could fall in a position to stretch your pocket. Most of the Insurance companies won’t consider customers’ end of the car is a loss; you have to do your best to prove your car’s worth in this case. Talk with your attornies to find out any of your vehicle’s latest repairs or extensions, demonstrating your car’s actual value.
For more details What Happens If My Car Gets ‘Totaled’ in an Accident?