You have endured some damage to your car and now comes time for the repairs. So, why is the repair cost more than the car value for insurance purposes? How can you receive a fair settlement for your car repairs? We have the information you need now!
If you’ve been involved in a car accident, chances are that you are shocked by the estimated cost of repairs you get from your body shop mechanic. Maybe you were not involved in an accident at all and your car’s engine is giving you lots of trouble. Now, you have the repair shop telling you how much it will cost to replace it. You look at the estimate and that repair on that engine costs more than the entire value of your vehicle. Ouch! Perhaps you have some wear and tear on your car, that has taken a huge toll on your car. When you look to fix a car that’s damaged, the costs can add up fast. Whether it’s mechanical issues, body damage or an engine, all car repairs are simply not worth going though.
After you get your estimates from shops to fix your car, you may need to take a day or two, to see how much your car is worth. Online sources such as the Edmunds and Kelley Blue Book websites can tell you an approximate value of your car. Do those repairs outweigh the total value of your car? What should you do then? After you know the value of your car, you now can take another look at the repairs. Is it worth to get your car fixed? Or should you just cut your losses and get another car?
What Are My Options When Repairs Cost More Than the Car?
When you calculate and determine the value of your car compared to the repair costs required, you can consider a few things. Check out this small checklist of questions you want to ask yourself:
- Will the repairs to my car increase its value?
- What could I get for my car as it stands now, damage and all?
- How badly do I need a working vehicle right at this minute?
Every car owner has his or her own unique car situation. But let’s pretend that your car has a value of $8,000. Now you have a repair bill of $3,000. If you spend that $3,000 to fix your car, will the $3,000 of repairs bring your car to a value of $11,000? Or will your car still stay at a value of $8,000? Perhaps there is another question that you may want to ask yourself: What amount of money would you get if you sold your car in its current broken and damaged condition? While most folks want a running car, you may find a buyer who will buy your broken-down car.
Where Can I Sell A Car That Isn’t Worth Repairing?
When you have a car that is not worth repairing, has extensive damage, doesn’t run or is a total eyesore and detriment to your life, you have options. Let’s take a look at a few places you can sell that damaged, totaled and broken-down car for fast cash:
Scrapyards & Junkyards
Both junkyards and scrapyards will welcome that old, totaled, damaged and rusted car- while offering you money for it. In most cases, you will need the title to sell it. While a junkyard and a scrapyard offer fast cash for non-running cars, you want to be sure that you get the most money for your car. For example, you may have a non-running and damaged car, but that car may have brand new rims or tires on it. Those assets increase the value of your car. Additionally, those assets are what you want to share with the scrapyard or junkyard owner.
A Private Buyer
You can also sell that broken-down car to a person, who may be looking for a car where he or she can use great parts from. Perhaps you can place a car ad on Craigslist, or another site. Just state that you have a damaged car, and see who contacts you. There may be a mechanic in your neighborhood that needs parts of a car, and would see your damaged car as a great deal.
Some private dealerships may accept your broken, totaled or damaged vehicle as one you can trade-in towards a new car. It’s important to note that lots of dealerships do not specialize in the trade-in of damaged car. So, you may find better chances at local and smaller as well as privately-owned dealerships.
What If My Insurance Company States That Damage To My Car Is More Than Car Is Worth?
You have your insurance company that you are dealing with. Additionally, you have your insurance company is stating that your repair costs are more than the value of your car. What do you do? A car insurance company will declare your vehicle a “total loss” when the cost to fix it, exceed the cash value of the vehicle. When you have this kind of claim, there is a bit more effort that your car insurance company has to put forth.
To be covered under a total loss, you need to have PD or property damage liability car insurance. Or- depending on the state in which you live- you need to have either collision insurance or comprehensive coverage on your policy. While PD is mandatory in every state, you can only receive a payout from property damage liability insurance after you file a claim against another car owner’s PD policy.
To get compensation, the other driver will also need to be deemed negligent during the accident. The most assured and easiest way of seeing money for total loss is to go through your own car insurance company, which you can do through the utilization of your collision insurance. With your collision insurance policy, it will not matter if you were at fault during the accident or not.
Next, provided you have no immediate or significant injuries, you will now need to file a claim with your car insurance company, as you would with any vehicle accident. There will then be a claims adjuster who will then come and evaluate your car so that a determination of the damage can be made. The designation of the vehicle being a total loss will be made with the adjuster, during this part of the process. Should the adjuster determine that the cost to repair the damages is far more than the car’s “worth” to them, then your car will be deemed a total loss. What constitutes a total loss? The answer actually varies state by state.
What If I Agree With My Insurance Company that My Car is a Total Loss?
OK- so, you’re in agreement with your car insurance company that the repairs for your car exceed the value of your car. You also agree that your car is a total loss. What happens now? Check out a few things that your insurance company will ask that you take care of:
- Remove the personal items from your car as well as the license plates.
- Give the keys to the car, to the claims adjuster.
- Mail your car insurance company any additional keys you have.
- Fill out any paperwork or documents you have to fill out.
- Contact your leasing company if you are leasing the vehicle.
The faster you take care of these tasks, and other ones that your insurance company asks of you, the smoother and faster the process will be. Once your car has a “Total Loss” designation, it will typically be taken by the insurance company. The car insurance agent will contact the DMV and notify them that the car has been totaled. Depending upon the state in which you live in, the vehicle will also be declared a “salvage” vehicle. Once this happens, the car will be made available for purchase to companies who buy salvage cars from the car insurance company.
What If I Don’t Agree That My Car is A Total Loss and it Can Be Repaired By Insurance?
Do you feel that the car repairs do not outweigh the total value of your car? What if they say the the repair cost is more than the car value and you don't agree? Then, you may be able to negotiate with the claims adjuster. You may be asked to provide more paperwork or documentation that supports your claim. You may also be asked to submit documents and proof that show what the car is actually worth, then officials had previously determined. Did the adjuster fail to account for any modifications or upgrades you made to your vehicle? Then you may have a solid argument. Should you ever feel that you have not been adequately and fairly compensated, you may contact an attorney, share your paperwork and displeasure and file a case.
Is It Worth It To Fix My Car?
If the repair cost is more than the car value, the choice to fix your car or not is a personal one. While some folks decide to get a car repaired, other folks just cut their loses and decide to buy another vehicle. As someone who has insurance, you want to weigh all of your options and make the best choice that can propel you forward.
It is virtually always less costly to fix a vehicle, than to buy a new one. But if you have to contend with a blown engine or a transmission, then you’re talking about thousands of dollars in repair costs. Those monies can add up when you factor in labor as well as parts.
Or you can sell that car to Cash Cars Buyer!
Looking to get rid of that damaged, “total loss” or broken-down car? Sell it to Cash Cars Buyer! We specialize in the cars that folks don’t want. We also pay fair market value, while offering a host of FEE FREE services too! We make selling a damaged, rusted, non-running and damaged car fast and easy for you. No need to bring your car to us; we come straight to you and once we verify all, we pay on the spot! Get a FREE online offer on your car by clicking here– get started now!