What Happens If Your Car Is Totaled By Insurance?
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasGreat question! Your insurance company considers your car totaled when the cost of repairing it is close to, or higher than it's blue book or their estimated value. Once the car is considered totaled, the company will send you a check for the amount specified by your policy, and the adjuster's estimates. The amount they have determined will be minus the amount of your deductible, and any amount that you may owe them. In most cases, the company will own the rights to the car, and will sell it for salvage, or at auction to mechanics willing to repair the vehicle. I hope that you never have to find out, but if you do, feel free to contact me, I'm happy to help. Thanks for asking!Answered on May 5, 2014flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaIf your car is declared a total loss you will be offered a settlement for the value of the car minus the deductible (if you were at fault.) Frequently you will be given the option to retain ownership in the car for a negotiated amount. If you then have the car restored, the licensed car will have a “salvage” or “C” title. The settlement is negotiated between you and the insurance company. Make sure that you understand all the options and assert your position if it is necessary.Answered on May 5, 2014flag this answer
14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482If your car is severely damaged as a result of an accident, for example, your insurance company's claims professional will assess the amount of damage and the related cost to repair that damage. Since usually the entire extent of such damage cannot be completely understood until the car starts to get torn down by the repair shop, a good rule of thumb is that if the inisitial cost to repair is about 70% of the current book value of the car, more than likely it will bt "totalled". You will be offered a settlement, subject to your deductible and based upon that current book value. If you have a full replacement value option on a newer car, you may be offered a new car of the same make and model with similar features. If you choose to take the monitary settlement but also want to keep your car, the insurance company rep may stamp the title to indicate the severity of the damage your car had sustained. If that happens, you will have a difficult time selling it later on.Answered on May 5, 2014flag this answer
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