Tips to Help You Know if Your Car is Totaled
Despite the fact that a car is still driveable, there is a high chance that it is totaled and considered a total loss. In most cases when the repairs cost about 70% of the total value of the car, then the car is considered totaled. Below are some of the ways that you can be able to know if a car is totaled.
By knowing how old a car is, you can be able to know if it is totaled. Older cars may look like they are fine but can be quite costly to fix especially when they get involved in an accident. The thing about older cars is that when you go to repair one thing, you may find that another thing needs to get repaired as well which ends up being very expensive.
To determine if your car is totaled, you need to consider what it is worth. Car worth is not always what is in the books but it can be measured in terms of mileage of the car as well as other features and even the area you are in can also determine the worth of your car. New cars depreciate fast and things like damages are factored in when it comes to factoring in depreciation but any upgrades to the car can help to increase the value of the car.
When considering if a car is totaled, you also need to consider the overall cost of repairs since various additions in a car can raise the total repair cost after an accident. Replacing the additional features can make the total cost of repairs go higher as opposed to if you were repairing the primary features. As if the cost of repairs are not enough, you may have to deal with labor cost as well making the repairs costlier.
When you get paid some salvage amount from the insurance company, you are able to keep the car if you do not want to let it go. The value of your car will be significantly lower when you get paid a salvage amount for it but it is important to not take the first offer you get. Do some research, and list down current repairs you have done on the car since it will give you a higher bargaining power for the overall amount to help you get a new car.
When a car is totaled, the lender gets the proceeds fist and you get what is left over. Since the insurance will only cover the car and not financing you may have to think other ways to cover financing of the car is totaled. One of the reasons why gap insurance is ideal is in case you need to deal with such situations and it will help give you some peace of mind when it comes to your finances.