When an insurance company offers settlement for a totaled car, the damaged vehicle is then taken to the salvage yard. Insurance companies then auction the car for the highest value it gets for the scrap and keeps the proceeds of the auction. However, if you want to keep your totaled car some insurance companies may allow you to do so.
The insurance companies will sometimes handover the totaled car to you and offer a settlement i.e. the actual cash value minus the salvage value. A salvage value is the value they would have got at the salvage yard after selling off the scraps from your car. This is how you can buy back your totaled car from the insurance company.
How do you reap the maximum benefits on your totaled car?
Here are a few tips to get the maximum out of your totaled car when you are going in for a settlement with the insurance company:
- Do a proper research to find out what your car was worth before the accident. You could also find out what would be the salvage value of your car in case you want to buy it back.
- Get your car cleaned. You could lose money for soiled cars. Be careful while cleaning. Do not remove evidence (knowingly or unknowingly). Leave the evidence for the adjuster to be able to see.
- Remove all your belongings before you hand over the car.
- Keep your title in hand for prompt transaction possibilities.
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