Can they declare my car a total loss?
Can they declare my car a total loss after an accident? Fortunately, in most accidents, the cars involved hardly suffer any dents or minor scratches. But this is not always the case, since in one out of every seven accidents, cars result in a total loss. In other words, according to AutoTrader.com, 12% of the vehicles involved in an accident are declared a total loss.
The causes for a vehicle to be declared a total loss are not always related to a crash while driving. Some cars are completely scrapped after a fire, or when they have been submerged in one of the frequent floods that occur in Florida.
The formula commonly used by insurers to declare a total loss is when the amount of repair and repair of a vehicle exceeds 80% of its current market value. An owner may be under the impression that the damage to his car is not that serious, but the insurance company may prefer to pay rather than repair it.
Then, the owner will receive the cash value that has been determined for the vehicle, less the deductible agreed in the policy.
Vehicles depreciate over time. If you want to know what the current value of your vehicle is, you can go to the Kelley Blue Book website www.kbb.com and find out.
If, when declared a total loss, the price of your current vehicle is $ 10,000, you could receive from your insurance company $ 8,000, less the deductible that appears in your contract.
Keep in mind that if you asked for a loan to buy your car and have not finished paying it, it is your obligation to fulfill the financial commitment contracted, unless you have secured your loan with a supplementary policy. Can you declare my car a total loss after an accident?
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