You just had an accident. If your vehicle is in need of significant or extensive repair it could be considered a total loss by your auto insurance provider. If, so you could be back at your nearest car dealer. The biggest determining factor as to whether your car is determined a total loss, is if the cost of fixing your car far outweighs the value of your car. Here are three factors that help determine the viability of your car post-accident.
Three Factors that Help Determine a Total Loss
Here are a few factors that insurance adjusters and the companies they work for use to help them determine the total loss of a vehicle after an accident:
1) Car type
Insurance companies factor in your vehicle type into determining it’s viability after an incident.
2) Vehicle Age and Condition
Keeping your car in great condition is important. Vehicles in pristine condition will be valued much higher than someone who does no vehicular upkeep.
If it is determined that you are ‘at fault’ for the accident to the point of contributory negligence the value of your car will be affected. The reduction of total value due to contributory negligence
isn’t an exact science. However, after determining the total cost of your vehicle the reduction for negligence will be deducted.
Outside of the above three, there are other mitigating factors that may be considered as well.
Claims Adjuster, Auto Body Shop, Warranty
Insurance companies will assess your vehicle’s damage with their network of auto repairers. The recommended auto body shops have contracts with your auto insurance provider. By law the choice of where you take your vehicle is yours. It is important to know that most reputable auto body shops provide a substantial warranty on their work.
Your Car is a Total Loss, What Now?
After concluding your car, a total loss, the insurance company will determine the cost of the damage to your vehicle. Besides the damage to your vehicle other factors like age, vehicular condition will be factored into their conclusion. The insurance adjuster will also attempt to find the sales price of vehicles like yours to calculate the value of your car.
Check whether your insurance company and plan offers replacement cost coverage. If a your insurance company will replace your totaled vehicle. Rental coverage will qualify you for a replacement for a defined period of time.
If you own your car outright you will be reimbursed with the determined valuation of the vehicle. Ownership of a financed car, will result in the total value going to the institution you financed through first. In the case of a leased car, the total will go to the leasing company.
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