How Insurance Company Determine When A Car Is Totaled
If your car is damaged in a crash, your insurance company has to make a careful assessment and determine whether the car is worth repairing or it should be declared totaled. If you are sentimentally attached to the car, it's understandable that you may push for it to be repaired rather than receive a check for the totaled car. However, the insurance company can't just take your word for it, they have to consider several factors, such as these four, before making a decision:
The Age of the Car
Your car depreciates from the moment you drive it off the dealership. This means that the older your car is, the more its value has depreciated. Therefore, if your damaged car is very old, it stands to reason that its value has plummeted, and repairing it may not be worth it. In short, chances of an old car being written off are higher than chances of a relatively new car being written off.
The Type of Car
The type of the car, whether it is a luxury or a standard car, will also come into play. It might make sense to repair a high-value car even if the repairs are worth a few thousand dollars because the worth of the car is much higher than that. However, an inexpensive hatchback that requires thousands of dollars' worth of repair should just be declared totaled because the cost of the repairs may be roughly equal to or even exceed the value of the car.
The Extent of the Damage
By and large, the extent of the damage is the premier factor in determining whether a car should be totaled. In most cases, extensive damage call for expensive repairs that may not be worth doing, unless the damages are merely cosmetic. For example, a damage that encompasses the windshield, door, and window may be considered extensive, but those things are relatively cheap to replace. On the other hand, even a relatively small ding on the gearbox may be expensive to repair.
The Conditioning of the Car Before the Crash
Lastly, the insurance company will also consider the condition of the car just before the crash. Even a relatively new or expensive car may not be worth repairing if it was poorly maintained. It's not far-fetched to find a well-maintained car that that is worth more than its newer counterpart that has been poorly maintained.
It is in your best interest to cooperate with the insurance company. For example, it's better to get a claim for a totaled car than to have it repaired only to pose a safety threat to you. Contact a company like Insurance Advisors Group for more information and assistance.
