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When Is A Car Considered Totaled? Understanding The Criteria For Total Loss Vehicles

When Is A Car Considered Totaled

If you are wondering when a car is considered totaled, you need to compare the total repair costs to the vehicle value. If you find that repair costs are approaching or exceeding the value of your vehicle will, then your car is considered a total loss.

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Getting involved in major car accidents is not rare. Unfortunately, vehicle damage is one of the very stressful things people suffer from after car accidents, assuming no injuries occur. In many instances, the vehicle damage might be beyond repair and might get the vehicle to be considered “totaled.”

The question remains, what is a totaled car? And when is a car considered total? Understanding all the details about the total vehicle is essential because once somebody is involved in a car accident, the last thing he will focus on is familiarizing himself with the procedure and going through some information online that might not be useful.

This article provides all you need to know to help you understand the idea behind the total vehicle and the main criteria to determine whether your vehicle is considered a total loss. It also highlights some recommendations on how to file an insurance claim about the total vehicle.

What does it mean for a car to be totaled?

Before we dive into the details about when a car is considered totaled, it's important for you, as a driver, to understand the meaning of a total vehicle. When the vehicle is labeled as totaled, the repair costs are high enough to the point that the insurance company is unwilling to fix your vehicle.


In that case, your insurance company will only pay for the true value of your vehicle and subtract any salvage value from the car. Typically, this amount of money you'll receive is the total loss settlement.

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When is a car considered total? Understanding the criteria for total loss vehicles

Now we have some idea about the meaning of a total loss vehicle and that you need to educate yourself before getting into the situation. The next step is to understand when the vehicle is considered a total loss; the insurance company will immediately assume that your vehicle is a total loss by just getting involved in a car accident.

Claiming the vehicle is a total loss is something that you can predict and know immediately after evaluating the potential repair costs. Typically, the insurance company will assume that your vehicle will be considered a total loss if repair costs are approaching about 75% of your vehicle's value.

For instance, let's say that you own a vehicle worth $15,000, and after the car accident, your mechanic evaluated the potential repairs to be about $13,000. In that case, your insurance company will not be paying all this money for a vehicle that's not worth it, and that's where they'll assume that your vehicle is considered a Total loss.

How Do I Determine If My Car Is A Total Loss

Can you keep a totaled car?

When dealing with a total loss vehicle, not everybody will be happy with the offer provided by the insurance company; in some instances, they might wonder whether they can keep the vehicle themselves.

Typically, the insurance company will give you the option to decide whether you should and want to keep the vehicle or accept the payment from the insurance company. Then, the insurance company will pay you the vehicle's value after subtracting the salvage value. The salvage value refers to the amount of money the salvage judge is willing to pay for this vehicle after the car accident, which involves the value of the remaining working parts and the metal component.

It's important for you as a driver to understand that keeping the vehicle is your own decision, and you must do the proper evaluation before doing so. It would be best to think long-term and see what you will do with this vehicle. Are you going to fix it? Is it worth the repair? Or do you want to sell it yourself and feel you can get much more money than the insurance company is willing to pay you?

All these questions need some time to be answered, and you don't want to rush this process, and you want to be very careful about all the consequences following a car accident. For example, suppose you still owe money on the vehicle. In that case, you have to think this through and understand how to take care of the remaining lien on the vehicle because, in a lot of situations, you won't be able to sell a vehicle in all states as long as you still have the money you own this car.

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How to file an insurance claim for a total car?

While you have a good idea about the total loss, you must understand how to file an insurance claim for this vehicle. After getting involved in a car accident, of course, you want to check that everybody is OK and then focus on the vehicle; you need to follow these steps to file an insurance claim for a total loss of car:

1.   Contact the insurance company

Start by contacting the insurance company and letting them know what happened to the vehicle. They can also describe some details about the vehicle and mention that you feel the car will be a total loss.

Many Automotive experts recommend not letting the insurance company know that you think the vehicle is a total loss and waiting until they come and evaluate the car before making the final decision and running to conclusions.

2.   Meet with the adjuster

Once you report the situation to the insurance company, they will coordinate with you and send an adjuster to assess the damages. Fear this adjuster will be an experienced person who can immediately tell whether the vehicle will be considered a total loss.

3.   Receive a total lost declaration

Once he assesses your vehicle's condition, he will let you know if the insurance company will declare this car a total loss. For example, if they just indicated that the repair costs would be close to the vehicle value, then in that case, you will expect that your car will be considered a total loss.

4.   Review the settlement

After declaring that the vehicle is a total loss, the next step is that the insurance company will send you what's known as the settlement. Which is the amount of money that the insurance company is going to be will pay for this vehicle.

You, as a driver, must review this supplement carefully, and we threw the details. You might want to run this element by your mechanic and see if they offer a variety to you that is appropriate for this vehicle's value.

This is the most critical step in the whole process that will allow you to decide whether you will keep the vehicle, sell it to yourself, or potentially accept the insurance company set limits.

5.   Decide whether to accept or reject the settlement

Depending on the previous step car you should know whether you want to keep this vehicle or reject the offer from the insurance company and sell your vehicle on your own. Again, you have to follow the recommendations of automotive experts and evaluate long-term what you will do with this vehicle and whether you have a good idea about where to sell it and who will buy it.

Some people might even start reaching out to car removal companies to check if they can get an offer. This way, you can compare the offer from the Car removal company to the insurance company's and see which makes the most sense.

For example, you can reach out to cash cars at 773-791-4363. Your team will provide you with an offer generated within less than 30 seconds. The offer will include a free pickup service within one to three days.

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Final thoughts

Dealing with a total loss vehicle is a big nightmare for many people. In addition, it can be daunting if you don't have experience with total loss and how to file a claim with the insurance company.

Understanding when a car is considered totaled is one of the most critical steps to release yourself to avoid dealing with Eddie Haskell during the process. This article walked you through all the details to help you understand a total loss vehicle and the criteria for the total car so you can have heads up about what the insurance company will provide you.

If you own a total loss car and think the insurance company is not providing you with the right offer, you can always consult Cash Cars Buyer at 773-791-4363. Our company will provide you with an immediate offer that reflects the maximum value of your vehicle in your area.

Are you looking for more details? Call our team today!

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