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Insurance Issues When a Car is Totaled

If you have recently been in an accident that has totaled your vehicle, then you may be devastated. Not only are you going to be dealing with emotional issues, but you may also be dealing with some serious financial, as well as possible vehicle warranty issues. If you are dealing with a total loss, then your insurance company is going to have to decide what to give you for the vehicle. This can sometimes be a nerve wrenching process, as you may be worried about what you will get for your vehicle.

If you do have an auto insurance policy, that means that you are not going to suffer as much of a loss as you would have without one. You will get some compensation for your vehicle, and it may be enough to help you to get another car. However, having coverage does not always mean that things will turn out the way that you want them to. There are a lot of different issues that might arise after your car has been totaled, and it's best if you are prepared for what might happen. That way, you can know how to deal with these issues later on.

What Totaled Really Means

A lot of drivers don't have a real understanding of what it means for their vehicles to be totaled. Many think that if a vehicle still looks like it can be driven, then it should not be considered totaled. This is certainly not the case, and a totaled vehicle is not always going to look really badly. Sometimes, a vehicle may look like it has only sustained a few thousands of dollars of damage, but in reality these damages may be a lot higher than you expect.

For a car to be totaled, your insurance company is going to look at the cost of repairs and compare them to your car's market value. It is calculated through an equation used by your insurance company and all companies may have a different method of making this type of calculation. Usually, if the repairs to your vehicle exceed 70 percent of its value, then your car could be considered totaled. As noted, all companies are going to make different decisions when regarding this, so you need to be aware of this once you've made a claim on your policy.

Issues that May Arise

The biggest issue that arises once you've made a claim for your totaled vehicle is that you do not agree with the assessment that has been made by the insurance adjuster. A lot of people have an emotional attachment to their vehicles, and do not want to see them totaled. If the number that your insurance adjuster comes up with is close to your car's value but you do not want it to be totaled, then you may have some recourse to file a complaint with your insurance provider. This won't always have the outcome that you expect though.

Another one of the insurance issues when a car is totaled is when your insurance provider does not offer you enough money for a replacement. You may be perfectly okay with your car being totaled, but you will want to have enough money to buy a new car that is going to suit your needs. Sometimes, your insurance provider is not going to give you this amount for a new vehicle, and you may be displeased about the situation. If this is the case, then you can also speak to your provider and you may be able to file an appeal.

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