When is your car considered ‘totaled’?

June 25th, 2015 by admin

It's rather difficult to fully understand when your car is considered to be "totaled" after its involvement in a collision. It could be anything from a bent frame on an old car that has wear-and-tear to a completely mangled vehicle. Even insurance experts can sometimes struggle to figure out the rules and regulations of the specific policy's definition. However, Fundy Mutual is here to clarify the matter and eliminate the guesswork so you can have the resources to efficiently protect yourself.

Cars are usually declared totaled when the cost of repair is more than the vehicle's actual cash value. So if a car would cost the insurer more money to fix than it would to replace entirely, it is declared totaled. Car insurance can compensate you for the pricey repairs your car may need after an accident, but it might not cover the costs in all cases. Car insurance companies may evaluate the condition and declare it a "total loss" if there is major damage.

However, it's not always practical to repair a vehicle. Even if the repair costs are less than the actual cash value, a car valued at $3000 before an accident that would need about $2000 worth of repairs might be considered to be totaled. It gets even more complicated due to the fact that not all insurance companies use the same method of determining a car's worth. If you currently have car insurance, you should check with your insurer to acquire this knowledge so you don't have to deal with it during the stress of an accident's aftermath.

Ensure that your assets are protected after an accident by having the best car insurance in Sussex and its surrounding areas. Reach out to Fundy Mutual for an affordable car insurance quote.