If you’re involved in an auto accident, regardless of fault, and your car is damaged, immediately notify your agent or insurance company (psst… that’s us). Though at first glance the damage may not look bad, the repair can cost much more than you’d think. That’s why a claims representative will review the estimate and determine the actual cash value of your car.
What does “totaled” mean?
Time for a vocabulary lesson. A “total loss” is a term that means the cost to repair your car is more than the value of the vehicle. Most insurers factor in the condition and structure of your car in addition to any state laws when determining your vehicle’s actual cash value (ACV, for short).
Here are some factors that determine your car’s actual cash value:
- Model, make and any added bells or whistles
- Overall condition
Other reasons for totaling a vehicle include when the damage makes the car irreparably unsafe, or if your state’s regulations require it for your vehicle’s damage severity.
If your car is in fact totaled, your insurance company will pay you the value of the vehicle minus your deductible.
If you’re deemed not at fault, you can choose to file a claim with the other driver’s insurance company.
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