Car Totaled?

Written by Welcome on January 27, 2016

With the slick icy Minnesota roads our shop has been seeing several cars that are a total loss.  Have you ever wondered how does a car become a total loss?  How do I handle a total loss situation?  In our experience, there are several factors that go into determining whether a car is a total loss or repairable.  First, the value of the car is determined.  The insurance company will look at the pre-accident condition of the vehicle such as mileage, year, make, model, features, and tire wear.  The insurance company will compare your car with similar cars for sale on the market to determine a retail value.  When the estimate is performed to determine the repair cost, the insurance will typically determine a vehicle a total loss at about 80 percent of the value of the car.  At that point the insurance company will work with you to determine a settlement to essentially purchase your car from you so you may purchase another replacement vehicle.  This brings us to a discussion about the situation where you may still owe money on your car and are not able to have enough money left over to purchase a car similar to the one you had totaled.  To prevent this from happening you can talk to your insurance provider about GAP Coverage.  This insurance provides the extra coverage you need to cover what is still owed on your vehicle.  There also may be a situation where you can purchase your vehicle back from the insurance company after it has been determined a total loss.  In that instance you can consult with the auto body shop to see what your options are to save the vehicle from the auto recycling yard.  Because there are so many different situations and circumstances it is always a good idea to consult with your auto body repair facility and your insurance company together to come up with the best situation possible for you.

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