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: Thu May 30, 2013 04:11 pm Post Subject: salvage car
Can the insurance company still pays for the salvage value of the car that is not in running condition?
Posted: Sun Jun 02, 2013 10:48 am Post Subject:
Pay the salvage value for what reason? Just because the vehicle is not in running condition?
Posted: Tue Jun 04, 2013 02:15 pm Post Subject: taxes and titling fees
In nebraska, if a person has a car that has been totalled out from hail damage and the insured decides to keep the car, are they still owed the sales tax and titling fees?
Posted: Wed Jun 05, 2013 04:22 am Post Subject:
If you are retaining ownership of the vehicle your claim will be paid on the basis of the ACV of the vehicle less the salvage value. Since you are retaining title (but will have to reregister as a salvage), you should not be entitled to license and tax fees, as you have not lost these.
Posted: Wed Sep 04, 2013 12:49 am Post Subject:
So I am buyin a car from a dealership for 12,000. A hail storm came through and I got a few 5000 estimates. Unfortunately I missed my first payment this month and the dealership threatened to take the vehicle away. I'm so worried!!!! The vehicle is blue booked at 4,000!!!!!!!! Since my total loss exceeds tje KBB vqlue of car woild i retain the car wothout paymentsm What
do I do??? I feel like I'm bein ripped off but I am at a loss. :?:
Posted: Wed Sep 04, 2013 02:28 am Post Subject:
woild i retain the car wothout paymentsm
NO! You owe the dealership $12,000, minus whatever payments you have made.Why would you buy a car worth $4000 and pay $12,000 for it?
Look in the mirror and see if either of these two words are on your forehead D I P U T S or T O I D I
Posted: Fri Jan 10, 2014 02:11 pm Post Subject:
Just yesterday my truck fell into a gigantic pothole as it was covered with heavy snow all around and I couldn't see anything. I've suffered minor injuries but the condition of the car is not at all in good shape. My friend, who is also an agent with Allstate, told me that I should claim asap since the car is totaled.
If I do so, would they take my car forever? I want to keep it. Who is going to decide ultimately that if it's totaled or not? The adjuster or the repairing shop?
Posted: Fri Jan 10, 2014 10:44 pm Post Subject:
would they take my car forever? I want to keep it. Who is going to decide ultimately that if it's totaled or not? The adjuster or the repairing shop?
No one can take your car from you, but if it is a total loss, and you want to keep the car, then you will be paid the difference between its actual cash value (replacement cost minus depreciation) and its salvage value. That may or may not be enough money to make the needed repairs.Most vehicles that are declared total losses must be reregistered as a salvage vehicle and be inspected prior to being issued a license.
Who determines the value of your loss? Not the repair shop. If it was up to them the value of your loss would be $1 less than the amount needed to total it. The insurance company adjuster only needs to declare that the cost to repair is $1 more than the actual cash value. Pretty good system, isn't it?
Posted: Mon Jan 13, 2014 08:17 am Post Subject:
...paid the difference between its actual cash value (replacement cost minus depreciation) and its salvage value.
What do you mean by actual cash value? The value of the car when I bought it .. or the depreciation value? Again, what is the replacement cost? Could you please elaborate using figures?
Most vehicles that are declared total losses must be reregistered as a salvage vehicle and be inspected prior to being issued a license.
Reregistered with whom? Who would inspect and what kind of license? I already have a driving license..
Posted: Mon Jan 13, 2014 08:44 am Post Subject:
As stated, ACV = replacement cost minus depreciation. Replacement cost is the market value of the vehicle. You buy a new car today for $25,000, the replacement cost is $25,000. But you drove it off the lot, and it just depreciated $8,000. The more miles you put on the car, the more it depreciates.
ACV = $25,000 - $8,000 = $17,000
Registered with whom? Motor vehicles are registered with the Department of Motor Vehicles. That should be obvious. Who would inspect the vehicle? The Department of Motor Vehicles. What kind of license? The one you attach to the bumper of the vehicle, sometimes surrounded by a license plate frame. The previous license must be surrendered when the vehicle is salvaged.
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