A totaled car is a vehicle that has been deemed a complete loss and hence is written off by the insurance company. Such vehicles are severely damaged and repair costs may even exceed the real value of the car. In such cases, the insurance company “totals” the car, pays a certain amount to the owner and then sells the car at an auction. In case you are desirous of buying such a vehicle, you can log into an online auto auction website of your choice.
These auction houses specialize in offering junk cars for sale and deal in almost all of the major brands. After repairing the car and taking care of the related legalities (in order to get the title removed) you can use your vehicle to commute.
Buying a totaled car is not always a waste of money. The reason is the different formula and processes being used by providers. Also, the totaling of your vehicle does not necessarily mean that the vehicle is beyond repair and cannot be driven. It is worth mentioning that insurance companies, while arriving at a decision (regarding a vehicle to be totaled) calculate the absolute cost. The decision depends upon a number of factors such as the age of the vehicle, mileage, etc.
Answering the question: Should you keep the car?
Keeping your totaled car can be a viable option in case it has sustained minor damages. If you decide to do so you will have to enter into negotiations with the insurance company. Once a mutual agreement is arrived on, the provider, after deducting charges and the amount it would have received by selling the vehicle at a salvage yard, would hand over the check to you. You can use this amount to get the vehicle repaired. However, before getting involved in the entire process, it is advisable that you get a fair idea of what the repair costs will be. This will help you in arriving at a rational and prudent decision.
Other factors to be considered
In addition to assessing the repair costs, you should also consider the below points when deciding on whether to keep the car or not:
- If possible, seek the help of a professional in order to get the car evaluated. There are some damages that only trained eyes can assess. These hidden damages, if not detected at earlier stages, can off-set your finances at a later stage.
- Your insurance service provider, after totaling the car, will provide a title to the vehicle. This may include the cause of the damage like flood, reconstruction, etc. Insurance companies usually hesitate about provide insurance cover to such vehicles.
It is advisable that you consider these points when deciding on whether to keep your totaled car or not. Also, avoid making hasty decisions and be alert and vigilant when arriving at a final decision.