How You Can be Able to Know if a Car is Totaled
Despite the fact that a car is still driveable, there is a high chance that it is totaled and considered a total loss. In most cases when the repairs cost about 70% of the total value of the car, then the car is considered totaled. Quick tips to help you know if a car is totaled are briefly highlighted below.
By knowing how old a car is, you can be able to know if it is totaled. Some cars may look like they are in good condition even after ten years but they may be costly to fix when they get involved in an accidents. When going to repair one thing, you may discover that other things need to be repaired as well and this can even end up costing the total cost of the car.
Another thing that you need to consider when you are trying to determine if your car is totaled is the worth of your car. Car worth is not always what is in the books but it can be measured in terms of mileage of the car as well as other features and even the area you are in can also determine the worth of your car. Statistics show that new cars depreciate fast and damages can increase the depreciation and that is why simple upgrades can come in handy to increase the value of your car.
Cost of repair is another reason why cars can be a total loss since the various additions to a car like headlight casings,bumpers and sensors are some of the other things that you need to repair after an accident that can add up the cost. If you are to fix the primary features the overall cost would be lower but with additional items you may have to contend with expensive repairs. Repairs are made costlier with the fact that you still need to pay labor cost making your car totaled.
If a car happens to be a total loss, then some insurance companies may decide to pay you some salvage amount and you get to keep the car if you do not want to give it up. The value of your car will be significantly lower when you get paid a salvage amount for it but it is important to not take the first offer you get. With salvage amounts, it is important to decline the first offers that you get so that you are able to have some bargaining power especially if you have done some repairs recently.
With a totaled car, the lender gets the money first and you get what remains from the proceeds. Since the insurance will only cover the car and not financing you may have to think other ways to cover financing of the car is totaled. When it comes to your finances, taking gap insurance will be ideal for you since it will help to cover the cost of financing in case your car gets totaled which will give you some peace of mind with your finances.