Insurance Term of the Day: Total Loss
If you’ve ever been in an accident, you know your car looks pretty gnarly afterward. Depending on the severity, it’s surreal that you were sitting inside the car when the damage took place. A claims adjuster will come to assess the damage on your automobile. Unfortunately, sometimes the damage is so bad, that they have to declare the car a total loss.
The insurance company will total your car when the cost of repairs exceeds a certain percentage of the value of your car. In this case, it would cost your insurance company more money to repair the car than to buy a new one. Typically, the cost of damages would have to exceed about 75% of the fair market value of the car for it to be considered totaled. However, the percentage depends on the state you live in and your insurance carrier.
To you, it may not look like the condition of your car is severe enough to be labeled “totaled.” If you have some sort of attachment to your car, the term “total loss” can devastate you. Maybe you feel like there is a cheaper way to fix the car. You may be able to work with your insurer if that is the case. Otherwise, it’s important to keep in mind that there are other factors that go into deciding if a car is a total loss.
There is also a chance for you to choose to keep your car in the condition it’s in, which will affect your payout and the value of your car.
When a car is deemed a total loss, your insurance company will pay out on the actual cash value of your vehicle. The value is determined based on condition and the current market value of your car.
Be safe on the road to avoid a total loss of your precious vehicle!
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Your Life Insurance Policy: A Secret Savings Account?
Don’t Cash Out! Unlock the Hidden Benefits of Your Life Insurance Policy (Free Quote Included!)
Taming the Paper Tiger: How to Keep Important Documents Safe
Don’t Let Your Important Documents Become Disaster Snacks! Safe Storage Tips Inside
Fort Knox for Your Family: Why Life Insurance is Your Secret Weapon
Life Insurance: The Unsung Hero of Family Protection (Free Quote!)
Decoding the Grocery Aisle: Your Guide to Nutrition Labels
Mystery Solved! Unveiling the Secrets of Nutrition Labels for Smarter Grocery Shopping
Kick the Bucket List, Not the Bucket: Unleashing Your Inner Adventurer
Bucket List Blues? Unleash Your Inner Adventurer with This Fun and Feasible Guide
Life Insurance: Unraveling the Mystery (No Shady Business Here)!
Life Insurance FAQs: Unveiling the Mysteries and Myths (Without the Gimmicks!)
Life Insurance Claims: Demystifying the Process (So You Can Get What You’re Owed)
Life Insurance Claims: A Simple Guide to Getting What You Deserve
Life Changes? Don’t Forget Your Life Insurance! A Guide to Keeping Your Beneficiaries Up-to-Date
Life’s Milestones and Your Life Insurance Beneficiary: Why Regular Reviews Are Crucial
Million Dollar Dreams, Affordable Reality: Is a Big Life Insurance Policy Right for You?
Million Dollar Life Insurance: Myth or Must-Have? Exploring Your Options
No Needles, No Problem: Unveiling the Secrets of Life Insurance Without a Physical Exam
Life Insurance Made Easy: Skip the Physical, Get Covered Today!