Can you keep a totaled car?

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.

Whether a car is totaled or not can be defined by keeping in mind these 2 different perspectives:

1. 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.
2. 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.

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:

• The make of the car.
• The model.
• The condition of the car and the mileage it has.

If the cost to repair the car exceeds a certain percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement again will take into consideration few other factors like:

• Make of the car
• Model
• Condition of the car and the mileage it offers
• Comparison with other similar vehicles in the same area

Essentially, the insurer is looking at the Blue Book value of your car. The settlement may include sales tax, title, and registration fees of the car if your state law requires it to.

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.