How to Determine the Value of a Totalled Car?

totalled car

Today the total number of accidents on roads has increased to a great extent. According to recent reports, around 6 million vehicles get damaged in an accident every year in the United States. Additionally, a large millions of automobiles crashed in an accident are left unclaimed by insurance agents and authorities. Have you ever wondered what happens to a car that is total loss? Read on to find out more. 

What to do with your car that is totalled?

When a car gets wrecked in an accident, it may be either in useful state or damaged beyond repair. If it has been smashed to a state that is no fixable, it will be titled as a total loss by the insurer. Once it is branded as totalled, it loses the ability of being drivable. This indicates that it can be neither registered nor insured for using on the road. In such cases, people usually offer them to the car scrap yards. They disassembled broken vehicles to obtain useful components. So these parts can be recycled and installed for use in working automobiles. Some institutions like charitable organizations also need totalled vehicles for educational motives. Likewise, some institutions buy wrecked automobiles with an intention to rebuild it.

However, if the buyer intends to use the vehicle, they will need to properly inspect and repair it. For this they will have to spare a lot of time and money which can often exceed the actual price of the car. This is why the insurance companies declare an extensively damaged car as a total loss. Do you have a vehicle that is a total loss or without an insurance? You can sell to wreckers for good cash.

How much you can get for your totalled car?

When declaring a car as totalled most insurance companies use a common formula. This may vary according to different insurers and type of wrecked automobile. According to experts most cars only retain 25-30% of its value after getting totalled.

Furthermore, many companies estimate a total damaged vehicle to approximately 70%-75% of its resale price. This means if a car has a value of $10,000 but requires a repair work of $7000-$7500 after an accident. It will be declared as total loss.

What to do with your damaged car on which you still owe money?

If you own a newer model, there are chances that you might still owe money on it. Many people face this situation where they are stuck with totalled automobiles on which they owe money. Here’s what you can do with such vehicles:

Make sure to continue paying off the remaining debt even when you apply to the insurance claim.
When it is declared as complete loss you can discuss the terms and conditions with your insurer.
They will first pay to any debt holders and then offer you the remaining balance.
If you owe a debt of more than the pay-out, you will need to wait until the entire loan gets paid off.

Sometimes people can find themselves in a situation when they have received the claim from insurer. But there is still unpaid debt on it. It is referred as negative equity. In order to get yourself out of such bad situations you can use a personal loan. Or, you can consider getting a new car loan for rolling your negative equity.

What is the best way to sell your totalled car?

Of course, you can consider selling your totalled automobile to the insurance company. In return they will pay a price for your car after deducting the total loss value. But if you really want to get rid of your broken vehicle for a fair cash. You can buy it back for the insurance company and sell it to the car removal service.

Wreckers will take your vehicle in any imperfect condition. They will also receive a fair value for it. Get an obligation free quote from them today. They will also remove your broken automobile for free. Also, you will get a good sun of cash in your pocket immediately.

Similar Articles

rally-cars

When choosing a new or used car in the market, the wide variety of makes and models to choose from can confuse the process. Of course, there may be a style or some special feature that you want in a vehicle, but there are also practical issues to be aware of.

Burning Oil Out of the Car

When your car engine starts to accumulate excessive wear and tear it indicates an approaching expensive repair. It can be because of some internal damage of the engine components. When the gasket or oil seal leak oil it will flow outside the engine. Usually it is distributed to other extremely hot parts in the engine.

diesel mechanic

Engines are the main parts of every vehicle. Investing in any vehicle is technically an engine. You will come across different kinds of engines. Mostly, we would find the diesel engines in heavy vehicles. A lot of customers prefer diesel engines because of the following reasons. 

 

Man and woman sitting in the front seat of a car whilst driving.

Being a driver is a big responsibility for many reasons. Not only are you responsible for your own safe driving on the road, but also the safety of others and the proper maintenance of your car.

car repair

A one hundred years ago when cars were not for average people but something luxurious and really rare on streets, no one ever thought that there would be such a diversity of special places to repair them. 

Buying a Used Car: Step by Step Guide

Car purchase might be one of the largest investments you make after buying a house. There are numerous options available when you want to buy a vehicle, starting from purchasing a brand new one, buying a used vehicle or leasing a car. This decision mainly depends on your budget, personal preferences, and your goal.

Car accident

Are you a car driver or do you own a car? Here are some serious injuries you need to know that can occur from a car accident.

Car breakdown and recovery

Driving a car down the road has become a trivial task in the 21st century when almost everyone owns a car. Roads are filled with traffic throughout the day with cars moving at different speeds and directions throughout the day. Just like any other machine, cars are also bound to face a few problems every now and then.

car

Keeping your car in order like holding a powerful car vacuum is essential in order to bear with the unfavorable circumstance you may happen to face.