Tip 19: Totaled car?

First, let’s define a totaled car (aka total loss).  A total loss is when a damaged car cannot be repaired safely, would cost more to repair than it’s worth, or when state law requires it to be declared as such due to the amount of damage.

When a car has been extensively damaged, many people are inclined to accept the check from the insurance company and walk away.  However, depending on the quality and condition of your totaled car, the value will vary considerably.  Some people will have enough to upgrade to a nice new car while others will barely have enough to buy an old car at lesser value.

Many people take the check as opposed to getting their vehicle repaired because even when repaired, a car that has been in a major accident will lose a lot of its resale value. However, if you do decide to keep and repair your old car, be prepared to do the following:

• Subsidize the repair costs out of pocket, especially if you had anything customized
• File a diminished value claim
• Work with your insurance agent closely and let your intentions to repair clear from the first conversation

Also, when speaking with your insurance agent, use several different comparison values to make sure you receive the fair market value of the vehicle.  And anytime you are injured, make sure to consult a car accident lawyer.