Since you started driving, you’ve past hundreds of mangled cars on the highway, but you never thought you’d be in the same situation. And it doesn’t even require that sever of an accident to total a car. In fact, most cars that get totaled are involved in much smaller collisions.
When exactly is a car ‘totaled’?
If the cost of repairing your car and getting it back into working order is more than a certain percentage of the car’s value, your insurance company is likely to declare your vehicle totaled. The level at which they decide a car is not worth repairing varies from company to company, and state by state. Though you can expect to see the cut-off point in the 50%-80% range.
This means that if your car isn’t worth all that much, even a small fender bender can get your car totaled. This is the exact reason car owners start scaling back their insurance coverage as their car ages. It’s not a total loss however. The insurance company still needs to pay out the cars cash value to you beyond your deductible.
Remember: There are state laws in place that require drivers to hold a certain amount of coverage, don’t scale back too much, you may find yourself below the legal limit. To ensure you get the appropriate amount of coverage, enter your zip code above.
The important thing to remember is that it is up to the auto insurance company to decide. Just because you believe your car is worth salvaging, doesn’t necessarily mean your insurer will have the same sentiments. However, there may be some things you can do to persuade them.
In most instances, insurance companies will let you keep the car if you would like. Of course you won’t get any financial assistance from your insurer to make any repairs.
How will it affect my rates?
Sad to say, but you are likely to see an increase in your premiums. Between the costs accrued by the insurance company and your increased risk, your insurer is recoup losses. Beginning to look for a new insurance provider may not be a bad idea.
Making the best of it
Sure, its not the best thing that has happened to you recently. We urge you to make the best of it, and try to make back as much money as you can.
If totaling your car was a result of collision, and someone else is at fault, you should be reimbursed by their auto insurance to get a new car for yourself.
If you were at fault, it may be a good time to start looking for deals, before your rate goes up to much. Luckily we have a huge selection of insurance providers waiting to work with you.