It\u2019s every driver\u2019s worst nightmare: You\u2019re in a car accident and your car ends up totaled. How do you move forward? First, you have to understand what it means for a car to be \u201ctotaled\u201d. <\/p>\n\n\n\n
If you\u2019re involved in a car accident and the damages done to the car will cost more to repair than it is worth, the car is then deemed a total loss. <\/p>\n\n\n\n
For example, if your car is worth $11,000 and it would cost $12,000 to repair, your insurance company would call this a totaled car. Here is what you need to know about totaled cars in relation to your car insurance.<\/p>\n\n\n\n
If you were involved in a serious car accident, there is a good chance that your car is a total loss. Your car insurance company will total a car when it costs more to repair than the car is worth. When this happens, an insurance claims adjuster will assess the damage on the car and decide whether or not it can be safely repaired for less than what the car is worth. If it cannot be repaired under these circumstances, your insurance company will alert you that your car is totaled.<\/p>\n\n\n\n
Regardless of whether your car was totaled by a car accident or something else, the first thing you need to do is file a claim with your collision or comprehensive insurance. At this point, your insurer will pay you out for the car\u2019s value, within the policy\u2019s limits. Many people who have found themselves in this situation would probably agree that this is the most frustrating part of the experience. A lot of times, the amount that you get back for your car isn\u2019t as much as you might have expected. If you are done paying off your car and don\u2019t owe any money on it, it\u2019s not too big of a deal. However, if you haven\u2019t finished paying off your car, you will have to use that insurance money to pay the rest of what you owe. Sometimes, the amount you receive isn\u2019t even enough to cover your remaining balance on the car.<\/p>\n\n\n\n
No one wants to pay for a vehicle that they can no longer drive, which is why it might help to have gap insurance. If you find yourself in this situation and have to pay an outstanding balance that is more than what your car is worth, gap insurance will help you pay the difference. Without gap insurance, it will be up to you to pay the difference.<\/p>\n\n\n\n
If you are in an accident that wasn\u2019t your fault, you will have to file a property damage claim with the at-fault driver\u2019s insurance company. Their property damage liability insurance will then need to pay you out for the value of your car, within the policy\u2019s limits. <\/p>\n\n\n\n
Unfortunately, some drivers might find themselves in a situation where the at-fault driver\u2019s property damage liability coverage isn\u2019t enough to cover the total value of the car. If this happens to you, you can either sue them or use your own uninsured or underinsured motorist insurance to cover the rest.<\/p>\n\n\n\n
If you get into an accident that results in your car getting totaled, your insurance company will have to reimburse you for the actual cash value (ACV) of the car. The ACV is based on how much your car was worth before the accident took place. This value is also influenced by other factors like age, make, model and condition.<\/p>\n\n\n\n
If you are given a value that you do not agree with, you do not have to immediately accept. You have a right to fight for more. It\u2019s strongly recommended that you do your research on websites like Kelley Blue Book to get an estimate of how much your car should be worth. Finally, if you and your insurer cannot reach an agreement on how much the car is worth, you can opt for an independent appraisal. When you and your insurance company do agree on an amount, they will pay you out accordingly and subtract the deductible.<\/p>\n\n\n\n
If you\u2019ve found yourself in this unfortunate situation, all is not lost. Some companies have additional types of coverages like \u201cnew car replacement\u201d or \u201cbetter car replacement\u201d that will offer you a higher pay out. <\/p>\n\n\n\n
If your car is a lease and it gets totaled in an accident, your insurance company\u2019s first call to action will be paying the leasing company. If you financed your car, your insurance company will first pay off the loan. If your car was worth more than what is still owed, your insurance company will give you the remaining balance.<\/p>\n\n\n\n
Several states will allow you to hold on to your totaled car and pay for the repairs out of pocket. If you decide to do this, your insurance company will subtract the car\u2019s salvage value from the amount they pay you. Keep in mind that by doing this, you may be taking a risk. A lot of times, if your car gets totaled, it\u2019s because it\u2019s no longer safe to drive.<\/p>\n\n\n\n
Once you do manage to get your car up and running again, note that it will most likely have a \u201cbranded title\u201d or \u201csalvage title\u201d until it is completely repaired and inspected. Also, remember that the total loss will remain on the car\u2019s history report, which could make it hard to sell in the future as well as depreciate the car\u2019s value.<\/p>\n","protected":false},"excerpt":{"rendered":"
It\u2019s every driver\u2019s worst nightmare: You\u2019re in a car accident and your car ends up totaled. How do you move forward? First, you have to understand what it means for a car to be \u201ctotaled\u201d. If you\u2019re involved in a car accident and the damages done to the car will cost more to repair than […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-228","post","type-post","status-publish","format-standard","hentry","category-articles"],"acf":[],"yoast_head":"\n