by Guest » Thu Sep 06, 2007 06:18 am
When your car is beyond repair because of an accident or costs more than the Actual Cash Value (ACV) of the car, it is considered totaled. When a car is totaled, only the salvage value of the metal is considered when determining the value of the car.
How is a car determined to be totaled?
Whether a car is totaled or not can be defined by keeping in mind these 2 different perspectives:
- The Individual's point of view: For an individual a car is totaled if the damage is beyond repair or if the owner cannot afford to get the car repaired. This usually occurs when the owner has only the minimum amount of insurance.
- Insurance point of view: A car is 'totaled' if the cost of repairing the car exceeds the cost of replacing it. Insurance companies consider only a percentage of the current worth of the car, and it is important that individuals are aware of the percentage their insurance companies will consider. Normally the percentage insurance companies deem the car totaled ranges from 51% to 80% of its current market value.
Settlement procedure for a totaled car
An insurance adjuster inspects and photographs the damaged vehicle to determine the degree of damage and the cost of repairs compared with the value of the car in its current state.
If the cost to repair the car exceeds the percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement will take into consideration a few other factors like:
If the cost to repair the car exceeds the percentage fixed by the company, it will make a settlement rather than get it repaired. This settlement will take into consideration a few other factors like:
- The make of the car.
- The model.
- The condition of the car and the mileage it has.
- Make of the car
- Model
- Condition of the car and the mileage it offers
- Comparison with other similar vehicles in the same area
How to keep your totaled car
Even if your car has been deemed 'totaled' you might want to keep it. In this case you have to convince the insurance company to let you keep the car. However, you can try one or few of the following tips to be able to keep a totaled car:
- Talk to your insurance claim adjuster and fight for your car. Remind the agent that you are the one paying the premium and that you have the right to change insurance companies.
- Document all maintenance performed on your car. This will help you decide whether or not you should accept a particular settlement offer.
- Insurance companies offer their own choice of repair shops. Use your own discretion. However, do your own research and also on the repair shop suggested by the insurance company.
- If you wish to retain your totaled car, the adjuster will deduct the salvage value while determining the final settlement offer. You may try negotiating with your adjuster to settle for a lower salvage value of your car.
- If you want to know the ACV of your car, don't depend on your insurance company. Get a second opinion, and do your own research online or at your local library.
Related readings
- Totaled car buy back
- When is a car totaled?
- Purchasing totaled car back from insurance company
- Will totaled car affect credit?
- Retaining totaled car
- Getting estimate for a totaled car
- How much is the totaled car worth?
- Settling a totaled car
Hi all, I am in a trouble. I was in an accident some days back. Although, none was hurt but it has caused a great damage to my car. I had approached to my insurance company and filed a claim. Now my insurance company wants to ‘write off' the vehicle. My question to the community is- when is a car considered totalled ? What are my chances if I want to retain my vehicle? Will the insurer compensate me under such circumstances?
Carclaims
Carclaims
Posted: Tue Jul 14, 2009 10:46 pm Post Subject:
NEED HELP!!
Without knowing all the options and running it as a 2wh drive, w/ 79k, I'm still getting an ACV of 21,100.00 so it's going to take quite a lot to total it.
Some (not all) states have percentage laws on the books, meaning a vehicle MUST total if the cost of repair is 70-75-80% of the vehicles ACV (actual cash value)...But also (as Chris pointed out) it will total if the cost of repair is more than the ACV minus the salvage value.
Posted: Wed Sep 30, 2009 07:51 pm Post Subject: Also screwed by an accident
So, this year, I was involved in an accident. Not my fault, but my loss. I was 11 mos away from paying off a pos ford taurus. All I wanted was to keep the car because I want out of the debt cycle. Making payments for a car is a trap, plain and simple. Well, the accident caused only cosmetic damage, yet due to the mileage and model of the car the damage was more than the ACV.
Problem 1: The insurance company 'totaled' the car, but would not give me a check without the title aka 'Proof of Legal Ownership'.
Problem 2: The lien holder or 'legal owner' would not release the title and allow 'owner retain' of salvage.
Problem 3: The insurance company gave me two options to keep or remove the car, but would not pay without bank's consent.
Basically a catch 22. So now, I am having to argue between two entities who say 'not me' when I ask whose at fault for taking my car. I am stuck between an institution that is supposed to take care of my loss cause by their client, and a bank who will not accept payment if I retain the car.
The bank get's their money, the insurance company gets my car, and I get nothting but the pain of going back into debt, and a 'sorry that's how it works'.
I am so angry that I am willing to quit being civil and start sueing everybody and their mother
Posted: Wed Sep 30, 2009 10:52 pm Post Subject:
a bank who will not accept payment if I retain the car.
Apparently the amount that the carrier would pay (if you retain the vehicle) is not enough to pay off the note is that correct? That's the only way I can think of that the leinholder could/would refuse this...tell ya' what...what is your pay off? what is the amount the carrier will give you if you retain the salvage? Let's see if we can help you figure something out...also what state are you in?Posted: Thu Oct 01, 2009 11:05 am Post Subject:
My touring caravan was wrote off last year and the insurance did not pay out. I complained and complained and finally my claim was granted. This is related to car insurance and any other type of insurance as if you choose the wrong policy options they could sting you in the future. I would not take out touring caravan insurance again without reading the t&c's fully!
Posted: Thu Oct 01, 2009 12:40 pm Post Subject:
It is the insured's responsiblity to make sure they have all the coverages they want, with the correct limits.
Posted: Sat Oct 03, 2009 12:36 pm Post Subject: structurally sound
My slight problem is simple. I was involved in an accident where the only damage to the car is minor damage to the drivers rear fender. No wheel damage, trunk still opens closes and seals, doors still open, no tail light damage, no windows broken. I am a full time student, full time employed, and full time single father, and not enough money to get another reliable car with the money they want to give me for my "totaled" car. what do I need to do keep my car if the claim has already been filed? I did not know I would have to go through all this crap when I turned it in.
Posted: Sat Oct 03, 2009 12:41 pm Post Subject:
Honey, do you own the car out right? If so tell them you want to retain the salvage. They will deduct the salvage amount and your deductible from the vehicles ACV (actual cash value). And give you the rest, bing, bang bom, you're done. Depending on the state and the age of your vehicle it may have to be re-register as a salvaged vehicle. Check your state guidelines for what is required, (unless you live in MO and I know them :wink: )
Posted: Sat Oct 03, 2009 12:56 pm Post Subject: just checking
Re-register? Is that going to be part of the salvage title stuff where they say I have to turn in my existing title? I'm trying to check into the state guidelines but I seem to be getting everything I don't need. Any ideas? As you can tell, I don't have a lot of time for jumping through hoops to get this resolved.
Posted: Sat Oct 03, 2009 04:45 pm Post Subject:
Re-register? Is that going to be part of the salvage title stuff where they say I have to turn in my existing title?
yeah, most likely every state is different..I'm trying to check into the state guidelines but I seem to be getting everything I don't need. Any ideas?
honey, post the state the vehicle is registered in and the year of your vehicle and I'll see what I can find...also do you have a lein on this, or do you own it?As you can tell, I don't have a lot of time for jumping through hoops to get this resolved.
I know, I don't think anyone does...let's see if I can help you some..post state, and yr/make of vehiclePosted: Sat Oct 10, 2009 12:34 am Post Subject: quote on a car
I have a 1963 ford mustang that is totaled. I just need an estimate on what I should expect from my insurance.
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