Was Your Car Deemed A Total Loss By The Insurance Company? Here's What You Want To Know
Posted on: 18 November 2017
In some situations after an automobile accident, it is deemed that a car would be a total loss because it is damaged so badly. However, in many cases, vehicle owners find themselves surprised when their insurance company decides that their car is a total loss because the damage does not seem all that bad. If you find yourself in this situation, you are bound to have some questions. Here are a few of the most common questions about a car that has been deemed a total loss by an insurer.
Does this mean you can never drive your car again?
Even though your car is deemed a total loss by the insurance company, it does not necessarily mean that the vehicle is no longer driveable. The reasons for a car being totaled can vary, but most often the total loss decision is based on the fact that repairing the car would be financially illogical because repairs will cost more than the car is worth.
What happens if you buy back your car from the insurance company?
If the insurance company decides that your car is a total loss, they will give you an amount of money that lines up with the value of the car, which essentially means they are giving you a cash price for your vehicle as a settlement to your claim and ownership of that vehicle will be theirs. However, if you would prefer to keep your car even though it has been totaled, you can buy back your car from the insurance company usually at the salvage price. If you do buy back your vehicle, it will have a salvaged title and will have to be rebuilt or repaired before the car is allowed back on the streets.
Will the totaled car be less valuable once it is fixed?
In general, yes. The car will have been totaled by the insurance company so that means that the title will be a rebuilt title even if the car is completely fixed. Even though the car obviously must be in a rebuilt state to be driveable, just having that rebuilt designation on your title can change how much the car is worth if you decide to sell it. It is for this very reason that some vehicle owners will accept a lower settlement amount to fix their vehicle to prevent the car from being deemed a total loss by the insurance company.
To learn more, contact a company like Chicago Auto Appraisers.
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