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How to Determine if a Car Is Totaled

Andy Mohr Collision Center Blog

Posted: November 6, 2019

If you’ve recently been in an accident, you may be wondering whether your vehicle can be salvaged. To help Plainfield, Indianapolis, Fishers, and Bloomington drivers know when their car is a total loss, Andy Mohr Collision Center has created this helpful guide.

Keep on reading to learn how it’s determined when your car is totaled and what happens during a total loss.

What Does It Mean When My Car Is Totaled?

In the event of a major accident, the total cost of a repair is likely quite high. For insurance companies, a car is considered a total loss if the cost for repairs reaches a certain threshold of the car’s total value.

The threshold for when a car is considered a total loss can vary from state to state, but it’s generally around 75%. In other words, if the total cost to repair your vehicle is over 75% of its current value, your insurance company will often reimburse you rather than pay for repairs.

What Is a Total Loss Formula?

Some states have no defined threshold implemented by law. In these cases, insurance companies use a “Total Loss Formula.” This equation adds the total cost of repairs plus the scrap value of the car. If the sum is at or above the car’s value, your insurance company can consider the vehicle totaled.

Ultimately, whether or not a car is considered totaled is up to your insurance company. If you think the car can be fixed, you can discuss with your insurance company whether or not the car actually is a total loss.

What to Do If Your Car Is Totaled

If your car is deemed a total loss, there are a few steps you can take. If you only have basic comprehensive and collision insurance coverage, you’ll typically be reimbursed after you pay the car insurance deductible. This reimbursement can then be used to pay off your car loan or as a down payment on the purchase of a new car.

If you maintain a loan on your car, it may be wise to purchase gap insurance. Gap insurance is coverage that extends your car’s reimbursement value through the full term of your loan. Gap insurance can be useful when you’re financing a new car to eliminate the loan if the car is totaled and no longer drivable.

Repair Your Car at Our Collision Center

If you’ve recently been in an accident, we can work with your insurance company to get you back behind the wheel. We’re here to make sure Plainfield, Indianapolis, Fishers, and Bloomington drivers stay on the road for years to come.

To have your car repaired as soon as possible, schedule an appointment with Andy Mohr Collision Center today!

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