You have probably heard people use the term “totaled” when talking about the condition of their car. Whether this is after a car accident, damaged parts, fire, or a natural disaster, most of us know having a totaled car is not a positive thing.
What makes a car “totaled”?
When your car is totaled, it simply means that the cost to fix your car will be higher than the value of your car, therefore it is beyond repair and seen as a total loss. Your car might also be declared a total loss if it would be unsafe to drive, even after repairs or certain state regulations require it.
Does My Car Insurance Cover a Totaled Car?
As long as you have the proper car insurance policies in place, having a totaled car shouldn’t be as detrimental for you and your family as it may sound.
Obviously, your first order of business is to be sure your family and everyone who may be affected by whatever accident or disaster caused your totaled car is okay. Once you know everyone is safe and healthy, you can move on to making your insurance claim.
Your insurance company will be in contact with your auto body shop to determine two factors. The first is how much it will cost to repair the damage and have your car back in safe, working order. Second, they will look at the history of your car, and the year, make, and model to determine the current cash value of your car.
At this point, the decision will need to be made. If the repair cost exceeds your car’s value, it will be declared totaled.
How does it work?
This is where having car insurance comes in really handy. When your car is declared totaled the insurance company will provide you with the amount your car was worth at the time of the accident. These funds can be used to purchase a new car.
It should be noted that if you owe money on a car loan, the funds you receive from your insurance company must be used to pay off the remainder of that loan. You will then have whatever is left to purchase a new vehicle.
To be sure you are covered when accidents and disasters happen, contact our agents at Link-Hellmuth for Car Insurance around Springfield, Ohio.
You will be thankful you did when life throws you a curveball or a totaled car.