It is not the most fun conversation to have, but statistically most people will be involved in an auto accident at least once in their lives. These are unfortunate numbers but if you have some knowledge on what to do before you get into an accident, it will be easier to get on with your life after one. You may have heard of the term “totaled” being thrown around to describe damage to a vehicle after a wreck or accident, but what does totaled mean exactly? Let’s get a definition to the term totaled, and give you the next steps to take should you find yourself in that situation.
What to Do If Your Car is Totaled
In order to figure out what to do if your car is totaled, let’s talk about what totaled actually means. Totaled is a slang term referring to an auto that is considered a total loss by the insurance company. This means the total cost of repair exceeds the value of the car, or that the car is beyond any type of repair. Sometimes if the cost of the repair meets a certain percentage of the auto’s total value such as 75% the auto may be considered a total loss, depending where the accident happened, and your insurance policy.
When you are involved in an auto accident, you should contact your insurance company or agent once you have exchanged information with any others involved in the accident and any local authorities have dismissed you. This is regardless of if you think your car is totaled or not.
Your insurance company will use many different factors to determine the value of the car including the vehicle’s make and model, mileage, resale value, age and several other factors. The number that your insurance company comes up with coupled with estimates from body repair shops will determine whether or not your vehicle is considered a total loss.
What happens next will depend on your insurance policy. The better the policy, the more the insurance company will provide for a claim or for you to replace the car. If you are still paying for the car through an auto loan, the insurance company will typically provide the actual cash value to your lender to be paid first, with the remainder going to the homeowner. What goes to you and what goes to the lender is worked out dependent on the policy, you, and the lender.
When you think your car is totaled, you must contact your insurance company immediately to figure out how to get back behind the wheel and get your life back on track as soon as possible.
The collision repair Denver experts at Colorado Collision Repair can help you with dealing with the aftermath of your car being totaled. Give them a call today!