Tips to Help You Know if Your Car is Totaled
Sometimes cars that can be driven around and still in good condition can be considered totaled. What makes a car to be totaled is if the value of the car and the damages to repair it amount to 70% then that car is considered totaled. Some of the ways that you can be able to know if a car is totaled are briefly highlighted below.
The first consideration that you need to make to determine if a car is totaled is knowing how old a car is. Most people drive cars for more than ten years and although it may look like it is in good condition, it may not be cheap to fix it and minor accidents can have a major impact on such cars. The thing about older cars is that when you go to repair one thing, you may find that another thing needs to get repaired as well which ends up being very expensive.
In most cases, the worth of your car is another thing that can determine if your car is totaled. The worth of your car is not necessarily what it is worth in the books but things like your mileage as well as the area you live in can 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.
When considering if a car is totaled, you also need to consider the overall cost of repairs since various additions in a car can raise the total repair cost after an accident. Replacing the additional features can make the total cost of repairs go higher as opposed to if you were repairing the primary features. Since such cost does not include labor, you may end up paying a lot on costs which makes the car to be 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. With salvage amounts, it is important not to take the first offer you get and to know that the value of your car will be much lower after the amount is paid. Take time to do your research and list down the repairs you have done on your car since it will help to give you a bargaining power on the overall amount.
Should you have ongoing payments on, it is important to remember that the lender gets the proceeds first and you get what is left over. In the event that a car is totaled, you need to remember that the insurance will cover the cost of the car and not the financing and for info. you can learn more on this homepage. One of the reasons why gap insurance is ideal is in case you need to deal with such situations and it will help give you some peace of mind when it comes to your finances.