by Guest » Thu Sep 06, 2007 06:18 am
When your car is beyond repair because of an accident or costs more than the Actual Cash Value (ACV) of the car, it is considered totaled. When a car is totaled, only the salvage value of the metal is considered when determining the value of the car.
How is a car determined to be totaled?
Whether a car is totaled or not can be defined by keeping in mind these 2 different perspectives:
- The Individual's point of view: For an individual a car is totaled if the damage is beyond repair or if the owner cannot afford to get the car repaired. This usually occurs when the owner has only the minimum amount of insurance.
- Insurance point of view: A car is 'totaled' if the cost of repairing the car exceeds the cost of replacing it. Insurance companies consider only a percentage of the current worth of the car, and it is important that individuals are aware of the percentage their insurance companies will consider. Normally the percentage insurance companies deem the car totaled ranges from 51% to 80% of its current market value.
Settlement procedure for a totaled car
An insurance adjuster inspects and photographs the damaged vehicle to determine the degree of damage and the cost of repairs compared with the value of the car in its current state.
If the cost to repair the car exceeds the percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement will take into consideration a few other factors like:
If the cost to repair the car exceeds the percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement will take into consideration a few other factors like:
- The make of the car.
- The model.
- The condition of the car and the mileage it has.
- Make of the car
- Model
- Condition of the car and the mileage it offers
- Comparison with other similar vehicles in the same area
How to keep your totaled car
Even if your car has been deemed 'totaled' you might want to keep it. In this case you have to convince the insurance company to let you keep the car. However, you can try one or few of the following tips to be able to keep a totaled car:
- Talk to your insurance claim adjuster and fight for your car. Remind the agent that you are the one paying the premium and that you have the right to change insurance companies.
- Document all maintenance performed on your car. This will help you decide whether or not you should accept a particular settlement offer.
- Insurance companies offer their own choice of repair shops. Use your own discretion. However, do your own research and also on the repair shop suggested by the insurance company.
- If you wish to retain your totaled car, the adjuster will deduct the salvage value while determining the final settlement offer. You may try negotiating with your adjuster to settle for a lower salvage value of your car.
- If you want to know the ACV of your car, don't depend on your insurance company. Get a second opinion, and do your own research online or at your local library.
Related readings
- Totaled car buy back
- When is a car totaled?
- Purchasing totaled car back from insurance company
- Will totaled car affect credit?
- Retaining totaled car
- Getting estimate for a totaled car
- How much is the totaled car worth?
- Settling a totaled car
Hi all, I am in a trouble. I was in an accident some days back. Although, none was hurt but it has caused a great damage to my car. I had approached to my insurance company and filed a claim. Now my insurance company wants to ‘write off' the vehicle. My question to the community is- when is a car considered totalled ? What are my chances if I want to retain my vehicle? Will the insurer compensate me under such circumstances?
Carclaims
Carclaims
Posted: Sun Dec 04, 2011 11:10 pm Post Subject: Saving a total loss
This is for "Guest_St_Louis". Your best bet is to not file a claim unless the car is undrivable, and if you can afford the repairs yourself. There is not much profit in salvaged vehicles unless you are a repair facility equipped to repair them. Even then it is difficult to make any money on a car that's totaled. Make sure to get multiple estimates, and explain your situation.
Posted: Wed Dec 07, 2011 04:58 am Post Subject: Sales tax on reimbursment???
Can the other persons (Driver who rear ended me) insurance company deduct Minnesota sales tax from the reimbursement amount they are giving me for my vehicle, which they decided is totaled?
Posted: Wed Feb 01, 2012 07:46 am Post Subject: call was totaled by being keyed up!
The estimator said I had 7,126 in damages, and my car has a cash value of 6,566. I was just told that I had to give up my car! What can I do? I feel like I'm being hit over my head or something, this isn't fair at all!
Posted: Wed Feb 01, 2012 01:31 pm Post Subject:
Can the other persons (Driver who rear ended me) insurance company deduct Minnesota sales tax from the reimbursement amount they are giving me for my vehicle, which they decided is totaled?
No, rather the at-fault party's insurance company will be reimbursing the sales tax amount which you had paid for your car.
I was just told that I had to give up my car! What can I do?
You can find out what the salvage value for your totaled car is and offer to buy it off the insurance company.
Posted: Thu Mar 08, 2012 07:18 am Post Subject: total car
What if you don ;t have the title to the car.
Posted: Fri Mar 09, 2012 06:54 pm Post Subject:
If you don't have title? What makes you think you have a claim for damage to something which you do not own? If you are the registered owner, you have an insurable interest, if your vehicle is financed, your lender also has an insurable interest which supersedes your own. If the vehicle is not registered in your name, you have nothing to recover except your own personal damages.
Posted: Fri Mar 30, 2012 07:09 pm Post Subject: salvage title
if i buy my car back do i have to give up the title
Posted: Fri Mar 30, 2012 07:20 pm Post Subject:
let me start over if i owner retain my car do i have to relinquish my title
Posted: Fri Mar 30, 2012 08:41 pm Post Subject:
[let me start over if i owner retain my car do i have to relinquish my title[/quote]
First, read my sig.
You might... depends on the state laws. Some states require the title to be turned in to the state so that it can be changed to a salvage title. Some insurance companies can just send in a letter asking the state to do this. But in the long run the title will be returned to you.
Posted: Mon Apr 30, 2012 08:34 pm Post Subject: Auto accident claim !
Hi all , i was in a car accident recently. I was not hurt too bad but my car got crashed. My insurance company said its a total-in case. But here is problem , I got the used car from a private party and to save some money , i registered the car for half of the amount i actually paid. Now the adjustor is asking for the registration and title to find how mcuh i paid which obviously very less then its actual market value. Does any1 hv experience or heard about some1 in a similar situation . Please reply If you do know , i m very anxious.
thank you
Add your comment