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, 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 a total loss? Read on to find out more. 

What to do with your car that is totaled?

When a car gets wrecked in an accident, it may be either in a useful state or damaged beyond repair. If it has been smashed to a state that is not fixable, it will be titled as a total loss by the insurer. Once it is branded as totaled, it loses the ability to be drivable. This indicates that it can be neither registered nor insured for use 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 totaled 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 insurance? You can sell to wreckers for good cash.

How much you can get for your totaled car?

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

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 repair work of $7000-$7500 after an accident. It will be declared a 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 totaled 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 for the insurance claim.
When it is declared as a 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 a claim from the insurer. But there is still unpaid debt on it. It is referred to 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 totaled car?

Of course, you can consider selling your totaled 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 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 sum of cash in your pocket immediately.

Similar Articles

What to Do After a Car Accident

Car accidents are far more common than you may think. In the UK, someone is killed or seriously injured every 22 minutes.

Jaguar XF (X250)

The birth of Jaguar XF fell during a rather difficult period in the history of the brand. All engineering and design work was carried out even when Jaguar entered the Ford empire, but just in the year the model entered the market, control over the company passed to the Indian concern,

insurance tips for first time drivers

People argue about the right time to list drivers, whether a newbie or a fairly mature one, on an auto insurance policy. Do you need to register your undertrained son who only has a learner’s permit?

Car Insurance

Auto insurance is a factor with a lot of influence over the car industry. It greatly affects motorists in the way they handle their vehicle and their spending habits. This is because of the millions of motorists who have their vehicles covered.

Left Lane Driving

While driving vehicles on the road following daily traffic, it is important to make sure you are driving safely and assuring the safety of others as well. Everyone should be aware of the laws because if we all follow traffic rules precisely, many road accidents can be reduced.

2021 Hyundai Palisade Review

Hyundai Palisade is a family, roomy, and practical crossover. It is well equipped and well designed to be comfortable, but not so opulent as to seem repulsively expensive. The sales results answer the question of what happened.

auto electrician

The modern age vehicles comprise an intricate electric circuit system that has essentially become the chief aspect of the vehicle. Various components of your automobile use electric power due to run the modern-designed parts

Types Of Auto Glass Cracks That Need Glass Repair Expert

Whether it's the windshield or the rear-view mirror, or the windows, the glass of your car is instrumental. They not only enhance the visual appeal of the car but at the same time, also play an important role in keeping the ecosystem inside the car at the right temperature and free from dust.

Close up shot of the gearstick in a car

So, you’re in the market for a car, but which is the better option for you? Should you buy a brand-new car? Or would you be better off with a good quality used car? There are pros and cons to be considered for each, and in this post, we’re going to look at some of the differences between buying new and buying used.