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The Insurance Company Said My Car is Totaled. What Now?

Your car was damaged in a car accident, and the insurance company is telling you it is totaled, or a "total loss." Now what? How did they determine that? The insurance company decides that your car is a total loss if the cost to repair your car exceeds what they determine your car was worth before your accident.

The decision rests on the cost to repair your car and the amount of damage the car incurred. If the cost of repairing your car exceeds a certain percentage of your cars value before the accident the insurance company will declare it a "total loss."

In addition, if the damage to your car is greater than 51% of your car, they can also declare your car a total loss. Basically, the insurance adjuster will compare the cost to fix your car along with any reimbursements for rental, to what the cars cash value was before the crash. It has been my experience that adjusters do not compensate for extras, such as parts you may have replaced or upgraded, or extra maintenance you may have done to ensure your car runs well.

How does this relate to your car accident? If your car is declared a total loss as a result of an accident, the insurance company will pay you the cars actual cash value after your deductible. In addition, in some cases they may also be responsible for costs that come with buying a new car like sales tax, title, and registration.

Problem: You owe more money on your car loan than the insurance company paid you.

Check your insurance policy to see if you have gap insurance. Gap insurance covers the gap between what you owe on your car or loan and its current market value. If you have been the victim of a Connecticut car accident and have questions call 1-800-4-INJURY or click here for a free case evaluation.

Categories: Car Accidents, Personal Injury


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