Car accidents can be some of the most stressful and traumatic experiences for any driver. It can be even more frustrating when your car is severely damaged, and you’re not sure whether it’s worth repairing or not. In some cases, you might want to ask your insurance company to “total” your car. What does that mean, and can you do it? Let’s find out.
What Does It Mean to Total Your Car?
When you get into an accident, your insurance company will send an adjuster to assess the damage to your car. If the cost of repairs exceeds a certain percentage of the car’s value, the adjuster might declare it a “total loss” or “totaled” car. This means that the cost of repairs is more than the car is worth, and it’s not worth it for the insurance company to fix it.
Instead, they will give you a cash payout for the value of the car, minus your deductible. This payout is based on the car’s fair market value, which is the amount you could sell it for in its current condition. You can then use this payout to buy a new car, or to put towards a down payment on a new car.
When Should You Consider Totaling Your Car?
There are several situations where you might want to consider asking your insurance company to total your car:
- The cost of repairs is more than the car is worth.
- The car is not safe to drive, even after repairs.
- The car has sentimental value, but it’s not worth it to you to repair it.
- You need a new car and don’t want to deal with selling the damaged one.
It’s important to note that the decision to total your car is ultimately up to the insurance company. However, you can make a case for it if you feel that repairing the car would be too costly or not worth it.
How Do You Ask Your Insurance Company to Total Your Car?
If you think your car should be totaled, you’ll need to contact your insurance company and provide them with all the necessary information. This includes the details of the accident, the extent of the damage, and the estimated cost of repairs.
Your insurance company will then send an adjuster to assess the damage and determine whether the car should be totaled. If the adjuster agrees that the cost of repairs exceeds the car’s value, they will declare it a total loss and offer you a payout.
What Happens After Your Car Is Totaled?
Once your car is declared a total loss, you’ll need to sign over the title to the insurance company. They will then give you a payout for the fair market value of the car, minus your deductible. This payout can be used to buy a new car or put towards a down payment on a new car.
If you have a loan on the car, the insurance company will pay off the loan first before giving you the remaining payout. If the payout is not enough to cover the loan, you’ll be responsible for paying the difference.
Conclusion
If you’ve been in an accident and your car is severely damaged, you might want to consider asking your insurance company to total it. This means that the cost of repairs is more than the car is worth, and it’s not worth it for the insurance company to fix it. You can then use the payout to buy a new car or put towards a down payment on a new car. However, the decision to total your car is ultimately up to the insurance company, and you’ll need to provide them with all the necessary information to make a case for it.
