Quick Suggestions to Help You Know if Your Car is Totaled
Sometimes cars that can be driven around and still in good condition can be considered totaled. What makes a car to be totaled is if the value of the car and the damages to repair it amount to 70% then that car is considered totaled. Quick tips to help you know if a car is totaled are briefly highlighted below.
It is easy to know if a car is totaled when you know how old it is. Some cars may look like they are in good condition even after ten years but they may be costly to fix when they get involved in an accidents. With older cars, you may find that when you take them to repair shops that there are a lot of things that need to be repaired which may be costly in the long run.
Another thing that you need to consider when you are trying to determine if your car is totaled is the worth of your car. Most people think that the worth of the car is usually determined by what is in the books but mileage,other features as well as the area the car is in can equally help to determine the worth of the 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. Repairs are made costlier with the fact that you still need to pay labor cost making your car totaled.
In case you do not want to give up your car, you can get to keep it since the insurance company can help you to get paid some salvage amount. After the salvage amount is paid, the value of your car significantly reduces and it is important that you do not accept the first offer that you get. Take time to do your research and list down the repairs you have done on your car since it will help to give you a bargaining power on the overall amount.
Should you have ongoing payments on, it is important to remember that the lender gets the proceeds first and you get what is left over. In case the amount is not enough to cover financing it is important to remember that the insurance company will cover the car not the financing. 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.