When Is a Car Considered Totaled?

When you’ve been in an accident, there are a lot of things that you have to think about. You’re concerned about rising insurance rates, injuries, and potential problems with your car.

Car owners don’t need to get told how expensive repairs can be. You may not want to pay for repairs, but you also don’t want to have to consider the costs if you end up with a totaled car.

Are you curious about what it means to have a totaled car? This post can give you some insight into one of the most dreaded and misunderstood terms in the automotive world.

What Is a Totaled Car?

The word “totaled” comes from the term “total loss“. A total loss in insurance terms occurs when a car gets damaged to the extent that it isn’t worth investing money into repairs. 

In some cases, an insurance company may consider a car totaled even if the repairs aren’t more than a car’s overall value. 

If you have a car that’s worth $4,000 that needs $3,500 in repairs, your insurance company may not see the value in investing that much money into repairing your car.

Who Decides Whether a Car Is Totaled or Not?

You may want to pay for repairs to your car, but it’s possible that your insurance company may not want to.

Different insurance providers have different standards when it comes to declaring a car totaled. One company may consider your car a total loss while another may be willing to pay for repairs. 

This can be difficult for some car owners to accept.

You may be busy picking the best personal injury lawyer since you got hurt in the accident and may not have money for a new car. You could be struggling to find money because you had to miss work because you lack a vehicle.

Unfortunately, the car owner and insurance policyholder have little say in whether or not a car is designated as totaled or not. The insurance company has the power to say whether or not a car is totaled. 

What Can I Do Once My Car Is Considered Totaled? 

Once your car is considered totaled by your insurance provider, they’ll issue a check for the total value of the car.

Most people decide to put the money they receive from their insurance company towards a new car. Even if your car wasn’t worth a lot, the small amount of money you have could be used as a down payment for a new vehicle. 

A few people may try to use the money and find a mechanic to handle repairs on their own, but this could be more trouble than its worth.

If you go outside of your insurance agency, you may find that repairs are even more costly. It’s also possible that the insurance company may want to sell your car for scrap and may not release the damaged vehicle to the owner.

Now What?

If you officially have a totaled car, you have a lot of decisions to make.

Do you know what kind of car you want to have next? Are you thinking about switching insurance providers because you aren’t happy with how your current provider handled the accident?

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