16 Jan What Determines if a Car is Totaled or Not?
Getting into a car accident is incredibly stressful, especially if your vehicle suffers major damage. However, your stress may be compounded if you have to worry about whether your auto insurance company will consider your vehicle a total loss. Your car is declared a total loss if the cost to repair it is greater than its market value, if it is beyond repair, or if it is completely unsafe to drive. National Auto Collision offers auto damage repair in Tucson, AZ, and we work with most major auto insurance carriers to provide damage estimates and inspections. Here are some of the reasons your car might be considered totaled.
A Low Cash Value
Your vehicle’s actual cash value (ACV) is the most important factor that your auto insurance company will consider when it’s damaged in an accident. This amount represents what your vehicle was worth prior to the crash, and is determined by its age, make and model, mileage, condition, features, and local market prices. This amount likely isn’t close to what you paid for the car, even if you bought it recently. It also won’t be the amount you would necessarily get if you sold your vehicle before the crash.
High Repair Costs
Another reason your insurance company will decide it’s not worth it to cover the cost of auto damage repairs is if the repairs will cost 50% or more than the cost of your vehicle’s replacement value. The insurance adjuster will factor in the cost for labor, parts, auto body repairs, and other factors.
Salvage Value
Some insurance companies also consider the damaged vehicle’s salvage value. This is the amount the car can be sold for to a salvage yard. In some cases, if that cost is close to the cost of repairs, the company will determine that is a better option.
Total Loss Formula
Some insurance companies use a specific formula to determine if a vehicle should be declared a total loss. The formula is the cost of repairs plus the salvage value. If that cost is greater than or equal to the vehicle’s actual cash value, the vehicle may be totaled.
An Unrepairable or Completely Unsafe Vehicle
After a serious accident or collision, a vehicle may sustain enough damage that it is considered unrepairable by any reasonable auto shop. This could be due to the vehicle’s age, a lack of available parts, or severe structural damage that compromises the overall ability to repair the car. If repairs wouldn’t restore the vehicle to a safe driving condition, it will also be totaled.
If you have been Googling, “auto accident repair near me in Tucson, AZ,” make an appointment with us at National Auto Collision Centers. Our skilled auto technicians specialize in car accident repair, including auto body repair, paint, major and minor collision repair, general mechanical services, and we offer convenient pickup and delivery services. We can also coordinate with your insurance company for faster service. Call us today or contact us online to schedule an appointment at one of our auto service centers.