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. 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. Below are some of the ways that you can be able to know if a car is totaled.
By knowing how old a car is, you can be able to know if it is totaled. 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. With older cars, you may find that when you take them to repair shops that there are a lot of things that need to be repaired which may be costly in the long run.
Another thing that you need to consider when you are trying to determine if your car is totaled is the worth of your car. Most people think that the worth of the car is usually determined by what is in the books but mileage,other features as well as the area the car is in can equally help to determine the worth of the 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.
After an accident, things like bumpers, headlight and casing can increase the total cost of repairs which can make them to end up being expensive causing it to be a total loss. Replacing the additional features can make the total cost of repairs go higher as opposed to if you were repairing the primary features. 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. After the salvage amount is paid, the value of your car significantly reduces and it is important that you do not accept the first offer that you get. Do some research, and list down current repairs you have done on the car since it will give you a higher bargaining power for the overall amount to help you get a new car.
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.
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