If you’re reading this, you’ve likely experienced the unfortunate situation of having your car totaled. A “totaled car” is a shock for any vehicle owner. But what exactly does this term mean? And what should you do in such a situation? This article provides all the essential information you need.
“Totaled” means that the repair costs of your vehicle would exceed its actual cash value (ACV). It’s simply uneconomical to restore the vehicle. This condition is determined by an independent vehicle appraiser.
But how does a car become totaled? The causes are varied. Serious traffic accidents, natural disasters like floods or hail, and even vandalism can lead to irreparable damage to your vehicle.
Totaled car after an accident
The decision of whether a car is considered totaled is not made by the vehicle owner, but by the vehicle appraiser. They prepare an appraisal report that documents the extent of the damage and the ACV of your vehicle. “The ACV is the amount you would have to spend to purchase a comparable used vehicle,” explains automotive expert Hans Meier in his book “All About Vehicle Damage.”
Car appraisal report for a totaled car
What happens now, if your car is totaled? In the case of comprehensive insurance coverage, the insurance company usually covers the costs. You then have the choice between receiving a payout of the ACV or having your vehicle repaired. If you choose to repair it, keep in mind that you may have to pay extra if the costs exceed the ACV.
A totaled car is frustrating, but not a reason to despair. It’s important to stay calm and get comprehensive information. An experienced vehicle appraiser and your insurance company will advise you in this situation.
Do you have questions about car insurance or would you like to learn more about other services? At autorepairaid.com you will find helpful articles and expert tips on all things car and repair related. Click here to learn more about Allianz Residual Debt Insurance.
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Frequently Asked Questions about Totaled Cars:
- Who decides if a car is totaled?
- What is the difference between Actual Cash Value and salvage value?
- What options do I have if my car is totaled?
More Interesting Topics on autorepairaid.com:
- What is CARFAX? Learn more here.
- Information on appraiser costs can be found here.
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