{"id":584,"date":"2022-08-03T23:21:00","date_gmt":"2022-08-03T23:21:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=584"},"modified":"2023-09-20T17:29:06","modified_gmt":"2023-09-20T17:29:06","slug":"totaled-car-what-to-expect","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/totaled-car-what-to-expect\/","title":{"rendered":"How Much Will Insurance Pay For My Totaled Car?"},"content":{"rendered":"\n
Auto insurance companies are required to pay you the fair market value of the vehicle prior to a devastating auto accident or natural disaster if you have what is known as full coverage car insurance<\/a>. For those who carry only the state-required minimum liability auto insurance policy in an at-fault state, you\u2019ll have to look to the other driver\u2019s insurance if the accident was not your fault. If the accident was your fault in an at-fault state, the insurance provider will not pay a penny toward your own car. If you live in a no-fault state, your insurance will cover you up to the limits of your policy, regardless of who is at fault. So how much will insurance pay for my totaled car?<\/p>\n\n\n\n If you have full coverage, which includes comprehensive car insurance<\/a> and collision auto insurance<\/a>, the question becomes: How does the auto insurance company appraiser determine the fair market value and what if I disagree?<\/p>\n\n\n\n If your vehicle caught the brunt of an accident and your insurer declared it a \u201ctotaled vehicle\u201d or a \u201ctotal loss,\u201d what does total loss<\/a> mean? In some cases, the answer to this question will depend on state laws, since different states set different levels for what is considered totaled.<\/p>\n\n\n\n Hopefully, you\u2019ll never get into such a major accident or have your ride underwater in a flood<\/a>, but many insured people don\u2019t understand what a total loss vehicle means for them. What makes a car totaled? How much money will you get in a total loss settlement? Let\u2019s go through some information and answer some potential questions you may have if you have a total loss claim.<\/p>\n\n\n\n Generally, a car is totaled if a claims adjuster determines the estimated cost of repair to the car exceeds the vehicle\u2019s value. However, this can vary from state to state as some state laws dictate that a totaled auto could be defined by a specific threshold. For example, the state of Alabama classifies a vehicle totaled if the damage exceeds 75% of its value rather than 100%. Check your state\u2019s laws for specific details.<\/p>\n\n\n\n If you have full coverage car insurance<\/a>, you should be compensated for your loss. If you\u2019re in a major car accident, contact your insurance agent and initiate a claim. Get the damage inspected at an auto repair shop. The shop will provide an estimate for the repairs to your insurer. The insurance adjuster will then determine whether or not the car is a total loss due to the repair costs. If the cost of repair exceeds the worth of your vehicle, your insurer will cut you a check for the damaged vehicle\u2019s cash value, minus your deductible.<\/p>\n\n\n\n If you only carry liability insurance, then you will have to depend on the property damage liability coverage of the at-fault driver in an at-fault state or your own property damage liability in a no-fault state. Keep in mind that these limits may not be enough to fully replace the actual cash value of your vehicle. You\u2019ll have to come up with money out of pocket to make up the difference.<\/p>\n\n\n\n A lot of different factors go into determining a car\u2019s value. Your insurance provider will take into account your car\u2019s age, mileage, condition, and resale value among other factors to determine its cash value and if it meets the total loss threshold. Let\u2019s take a closer look at this information.<\/p>\n\n\n\n This isn\u2019t something you can always see just by looking at a car that\u2019s been damaged. For example, the auto could have a cracked frame, which may not be visible but is almost always an indicator of a vehicle that will be totaled. On the other hand, a car that looks heavily damaged with dents and other visible issues may be more easily repaired. This information can be determined by a mechanic and will be passed on to the claims adjuster.<\/p>\n\n\n\n Typically, if a vehicle will cost more than 70-75% of its pre-incident value to repair, the auto insurance company will declare it totaled. This is because there are other costs they factor in \u2013 like how much it will cost for them to put you in a rental while yours is being repaired.<\/p>\n\n\n\n The year of your automobile is important. It becomes harder and more expensive to find replacement parts for older cars. If it looks like sourcing parts is going to be onerous and costly because your wheels are an antique, then it may be totaled.<\/p>\n\n\n\n Those initials after your automobile\u2019s make and model count. You can see the difference between an LX and an EX model if you plug the specifics into the Kelley Blue Book\u2019s What\u2019s My Car Worth<\/a> tool. When assessing the pre-accident value of your vehicle, there may be quite a difference between the trims.<\/p>\n\n\n\n Maybe. Insurers will also be taking into consideration how much money it can recoup from the salvage yard \u2013 which makes its money by selling the parts off your vehicle. If the salvage value of your auto means money into the insurance provider\u2019s accounts, it\u2019s more likely to declare it totaled.<\/p>\n\n\n\nWhat Does \u201cTotaled\u201d Mean?<\/h2>\n\n\n\n
What Happens If My Car Is Totaled in an Accident?<\/h2>\n\n\n\n
What Determines the Value of My Vehicle?<\/h2>\n\n\n\n
\u00b7 How Much Damage Has it Sustained?<\/h3>\n\n\n\n
\u00b7 How Much Will it Cost to Repair?<\/h3>\n\n\n\n
\u00b7 How Old is the Vehicle?<\/h3>\n\n\n\n
\u00b7 What is the Vehicle\u2019s Make, Model and Trim?<\/h3>\n\n\n\n
\u00b7 Will the Insurance Company Make Any Money on Salvage?<\/h3>\n\n\n\n