Customers often ask us why is my car totaled or is my car going to be totaled.
When and whether a vehicle involved in a collision is considered to be “totaled” for first-party insurance purposes is an issue of great confusion.
We hear horror stories about older, functioning automobiles being “totaled” simply because the frame is bent or other seemingly minor and hidden damage occurs. Even insurance professionals can get turned around navigating the maze of rules and regulations regarding the act of “totaling” a vehicle under a policy. But it does not need to be all that complicated.
Typically, cars are considered to be “totaled” when the cost to repair the vehicle is higher than the actual cash value (ACV) of the vehicle. Practically speaking, however, it is not always practical to repair a vehicle, even if the cost of repair is less than its ACV.
A vehicle worth $4,000 requiring $3,000 in repairs might be considered “totaled” by an insurer even though the cost of repair is less than its value before the accident. Insurance companies will typically consider such a vehicle to be a total loss, even though the repairs are only 75 percent of ACV.
Got questions about auto body and paint and insurance related questions? We’ve been doing this a long time, give us a call and we’ll probably help shed some light!
Chuck or Debbie, (760) 743-5037.