Even if you are careful when driving, as soon as your car is out in the street, there is always the chance of getting involved in an accident. Did you know that there are millions of car accidents recorded every year? You don’t want to get involved in an accident because it can cause serious problems and it can be costly too. Unfortunately, car accidents can be prevented but can happen to anyone at any time. When the damage is minor, you can get assistance from your local mechanic shop especially when you want to file for an insurance claim. However, the problem starts when your car is totaled.
What is a Totaled Car?
Your car might still be covered by your insurance policy but it may need a thorough investigation first whether it is you or another driver who was at fault during the accident. Once you file for an insurance claim, your insurance company will assign a claim adjuster who will determine how much the company should pay out for the claim. The adjuster is also the one that will determine if your car is totaled. When you say your car is totaled, it means that the car is not repairable at all or not worth repairing because it will cost more to repair it than buy a new one.
Even if you wanted to make the repair, your auto insurance company will refuse because a totaled car is not worth it. For example, if your car’s worth is $12,000 and the total damage repair is worth $15,000. In this case, the car would be declared as totaled. However, your insurance policy may give you the cash value of your car. Your insurance company will determine the value by considering several factors such as the model of the car, age, condition, mileage, resale value, chances of unseen damage and the possible price of the car in the local market.
When car totaled is not caused by a car accident
What if your totaled car is not caused by another car driver? Yes, not every totaled car case has someone to blame. There are instances when a car is deemed beyond repair or called a totaled car due to acts of nature such as when a tree falls directly on your car. For comprehensive coverage policy, you can apply for insurance for the actual cash value of your car minus the deductibles. If the totaled car is caused by another motorist, collision coverage is applicable. Your insurance company will then decide if they will seek payment from the other party involved.
Your car insurance will pay for a totaled car
If you own a car, it is important to take out both collision and comprehensive coverage. It will cover you for damages related to the crash. Your car insurance company will pay for a totaled car case as long as you have the appropriate coverage, pay the premium on time and didn’t do any criminal actions at the time of the crash such as DUI.
A car accident can be scary and costly but taking out an insurance policy can help you during these times of difficulty. For more information contact us at HBM Collision Center for collision repair today!