It can happen to anyone. Perhaps you were navigating a busy intersection when a flash caught your eye but, before you could react, you heard a sickening crunch of metal on metal. Or maybe you hit the brakes in time to avoid a crash only to hear screeching tires behind you just before a vehicle slams into your rear bumper. In these or similar situations, time seems to stand still for a moment before reality comes crashing back. As the initial shock subsides, you check your health and that of your passengers before assessing the condition of your vehicle.
When reviewing the damage, it is common to wonder whether it is salvageable or totaled. The following will dive into the difference and help you get a better understanding of your situation.
Understanding the term ‘totaled’
Car insurance companies generally consider a car as totaled when the cost of repairs exceeds its actual cash value (ACV). This criterion establishes whether to repair or replace your vehicle. Knowing this definition helps you navigate the claims process more effectively.
Signs your car might be totaled
The following can be signs the vehicle is totaled:
- Extensive structural damage: If the frame or major components are severely damaged, repairs may be impractical.
- High repair costs: When repair estimates approach or exceed the car’s ACV, insurers often declare it totaled.
- Safety concerns: Safety is another important factor. If the mechanic cannot restore the vehicle to a safe condition, the insurance company will likely consider the vehicle totaled.
Understanding these signs helps you anticipate the insurance company’s decision and plan accordingly.
Steps to take if your car is totaled
One of the first steps to take after an accident is to report the crash to your insurance company. If you believe the insurance provider is not offering a fair settlement, you can push back. Legal counsel can review your case and provide guidance, better ensuring you receive the settlement you deserve.
