How much money do you get if your car is totalled?
The car's fair market value at the time of the accident minus the deductible. This is based on the value provided by the blue book.
A car is totalled not just when it is totally wrecked, damaged or beyond repair. A car is declared to be a total loss depending on the policies of the insurance company.
A Matter of Value
It really depends on the current value of the car. If the insurance company does not deem it worth having the car fixed, then the insurance company will just declare the car a total loss. This is when:
- Your car is totally beyond repair and its value will only be for scrap metal.
- Your car is still fixable but it will always be in bad condition.
- The cost of the car post-accident is at a certain percent of its actual value. The percentage will differ from one insurance company to another. Some insurance companies declare the car a total loss if the value is lowered to 80% while some do this if the value is lowered to 51%.
How Computations Are Made
When a car is declared a total loss, it may be auctioned off for its scrap value. What the insurance company will receive the payment from the highest bidder and keeps this money. What they will pay you is the car's actual market value minus the depreciation listed in the policy.
Disputes
If you feel that the insurance company is not giving you a good settlement, you can get an independent appraiser to inspect your car and to give you his appraisal in written form. However, this will be at your expense. If this vastly disagrees with the value given by the insurance company, you can use the report to build your case.
If there still is dispute, then, you can try either for arbitration or litigation. For arbitration, a third-party arbiter decides on your case. In litigation, you bring your case before the court. But before you start with arbitration or litigation, you should consider the expense and the effort, if it is worth the trouble.
| Not a bit | Very useful |
- Does company insurance or workman's comp cover car accidents while working?
- How do you handle the insurance after a 'hit and run' accident when you took down the license plate number?
- Will your premiums go up if you were involved in an auto accident but were not at fault?
- Do you have to pay taxes on money you received in a car accident settlement?
- How does the insurance company decide whether to total or repair the car?
- How long can an insurance company keep a DWI conviction on your record?
- Will a parking ticket or a seat belt violation ticket raise insurance rates?
- What is GAP insurance? How does GAP insurance work? What does GAP insurance cover? Is auto GAP insurance needed?
- What is the difference between GAP and comprehensive insurance?
- Do automobile insurance companies pay for pain and suffering?
- How can I be legally covered with car insurance when using a carpool service?
- Do I need to get car insurance if I don't own a car?
- What happens if my car does not have car insurance?
- After how many accidents can an auto insurance company drop your coverage?
- Who should pay first in an auto accident health insurance or auto insurance?
- How does auto insurance work in accident when you are not at fault?
- How does a speeding ticket affect your auto insurance rates?
- Auto insurance - how much bodily injury liability should I have?
- Will auto insurance pay for collision repair if I'm at fault?
- How long does it usually take an insurance company to offer to settle in an auto accident case?