Understanding a Totaled Car
A car is typically declared "totaled" when the cost of repairs exceeds a certain percentage of its value, as determined by insurance companies. This threshold varies by state and insurer, usually ranging from 60% to 80% of the vehicle's actual cash value (ACV).
Immediate Steps to Take
1. Assess the Damage
Have a qualified mechanic perform a thorough inspection focusing on:
- Structural Integrity: Check for frame damage
- Mechanical Functionality: Engine, brakes, and critical systems
- Safety Features: Airbags, seatbelts, and lights
- Alignment and suspension
- Electrical systems
You can find certified mechanics through the National Institute for Automotive Service Excellence (ASE).
2. Contact Your Insurance Company
Notify your insurance company about the accident and provide:
- Photos of the damage
- Police report
- Other relevant documentation
Visit the National Association of Insurance Commissioners (NAIC) website for more information on the claims process.
Understanding Your Options
When your car is declared a total loss, you typically have several choices:
- Accept the Settlement: Receive the car's ACV and surrender the vehicle
- Keep the Vehicle: Accept a reduced settlement minus salvage value
- Sell the Vehicle: Options include:
- Donate the Car: Consider donating to charity through Charity Navigator
Legal Considerations
Before continuing to drive a totaled vehicle:
- Obtain a salvage title from your state's DMV
- Complete required inspections and certifications
- Secure proper insurance coverage
- Check local regulations
Note: Laws regarding salvage titles and rebuilt vehicles vary significantly by state. Check your state's Department of Motor Vehicles website for specific requirements.
Financial Implications
Pros of Keeping a Drivable Totaled Car
- Lower immediate expenses
- No immediate need for replacement
- Flexible repair timeline
Cons of Keeping a Drivable Totaled Car
- Limited insurance coverage options
- Reduced resale value
- Potential safety concerns
- Higher maintenance costs
Insurance Implications
If you decide to keep driving your totaled car:
- Comprehensive coverage may be unavailable
- Liability insurance might be your only option
- Insurance premiums could increase
- Future claims may be complicated
Steps for Keeping the Vehicle
- Request a salvage title
- Complete required inspections
- Document all repairs
- Secure appropriate insurance
- Maintain detailed service records
For more information about vehicle safety, visit the National Highway Traffic Safety Administration website. Always prioritize safety and consult professionals when necessary to ensure your vehicle remains roadworthy.