If your car has been damaged in an accident, you may be wondering if it can be saved. The insurance company will likely determine whether your car is a total loss (or "totaled"), which can have a big impact on your finances. Here's what you need to know about totaled cars and how they are handled by insurers.
What does it mean if your car is 'totaled'
If you're ever unfortunate enough to have your car written off due to an accident or other damage, the term 'totaled' is certainly an unwelcome one. Essentially, it means that the repair costs for the damaged vehicle would be so great that it's not economically viable for the insurer to pay out on it - what they will do instead is issue you a cash settlement. Depending on how badly your car was damaged and its value before it was written off, this could range from being worth very little money to covering the cost of buying another similar model, plus any other expenses that were incurred. Understanding what totaled means can help you make sure you get the best outcome if your vehicle is so badly damaged that a full repair isn't possible.
This doesn't mean your car can't be fixed
Totaling your car after a collision may feel like a major setback, but this term shouldn't be taken too literally! Depending on the severity of the damage, it's often possible to repair a totaled vehicle and put it back on the road. Insurance companies typically use this verbiage as it simplifies their understanding: 'totaled' means the total cost of repairs plus the diminished value of the car is higher than its current market value. But that still doesn't mean you'll be stuck without wheels- if you have comprehensive coverage, many insurers will actually cover the costs of repairs regardless of an official 'totaling'. As well, even if your insurance doesn't cover it, it is entirely possible that the damage is superficial (yet expensive), and your car can still be safe to drive by repairing the necessary parts. Don't let one word stop you from getting your car fixed; with a little research and some persistence, you could find yourself cruising in no time.
How your insurance will help resolve a car being totaled
When your car is totaled, insurance can be a massive asset in helping to resolve the issue. ‘Totaling’ a car refers to an insurance company deeming the cost of repairs too high for them to justify and instead opting to pay out its full value. In these cases, you will receive a payment based on the pre-accident market value of your vehicle so you can work on replacing it as quickly as possible. If it’s not enough money to cover the cost of repairs completely, you can also look at auto loans to make up the rest. It is important to understand how this claim process works, so you can secure any coverage that makes sense for you and your vehicle should an accident occur.
Options for your car after being totaled
When your car has been totaled, it may feel like all hope is lost. But in reality, there are still options available! Depending on the severity of the damage, you may be able to get an insurance settlement and use that money to buy a new car or even repair your existing one. Additionally, there are professional services that specialize in salvaged vehicles and can sometimes put them almost entirely back together from just salvageable parts. When deciding what to do next with a totaled car it's important to weigh out all options before making any decisions!
Car repairs and insurance can be stressful topics, but it is important to have all the facts before heading into any situation. If you find yourself in the unfortunate circumstance of having your car classified as total, there are still ways to salvage the situation. Insurance companies will typically pay enough to cover the value of your car given fair market conditions or they may decide they want to take it back, fix it up and resell it. It is also an option for you to get an independent cost estimate that you can use as leverage against your insurance company. In the end, no matter what route you take, know that with a bit of research and determination, you won't be helpless if your car is ever considered ‘totaled’.
