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When Is A Car Considered Totaled?

 

175 Highway Traffic Accident - When Is A Car Considered TotaledA car is considered totaled when the cost to fix the car exceeds the value of the car. Some states have laws that define a totaled vehicle by specific thresholds. In Alabama, for instance, a car may be totaled when the damage is greater than 75 percent of its value. In that case, if a vehicle is worth $5,000 and the repair estimate is $4,000, the vehicle would likely be considered totaled.

In other cases, the insurer determines whether a vehicle is considered a total loss.

Auto Traffic Accident - When Is A Car Considered Totaled 

Comprehensive coverage and collision coverage help pay to replace a totaled vehicle. These two separate coverages are typically required on your car insurance policy if you're leasing or financing your vehicle. If your car is paid off, they're optional. But, if your vehicle is totaled and you don't have comprehensive or collision coverage, you may have to pay out of pocket to buy a replacement vehicle.



WHAT HAPPENS IF MY CAR IS TOTALED IN AN ACCIDENT?

If you're involved in a car accident, there are a few basic steps to follow before and after your vehicle is considered totaled:

  • Contact your agent and initiate an insurance claim.

  • Your insurer will determine whether the vehicle is a total loss, based on repair costs.

  • Your insurer will issue payment for the actual cash value of the totaled vehicle, minus your deductible on your comprehensive or collision coverage.

HOW IS MY CAR'S VALUE DECIDED?

To determine your car's worth (the "actual cash value" in insurance terms) at the time of the accident, insurers typically use a number of factors to figure your car's actual cash value, including its age, condition, mileage and resale value, in addition to the selling price of similar vehicles in your area.

DO I STILL HAVE TO PAY A LOAN ON A TOTALED CAR?

If you're financing a car that's been totaled, your insurance company will likely make the claim check payable to both you and your lender, which means you'll have to come to an agreement with your lender on how to release that money, the Insurance Information Institute (III) says. Typically, the lender will be reimbursed first, with any remaining money then being paid to you.

It's possible that you may still owe your lender more for the car than the insurance payment you receive. In that case, you are responsible for paying the remaining balance on the car lease or loan.

Adding loan or lease gap coverage to your car insurance policy is one way to help protect against paying a lender out of pocket for a totaled vehicle. Depending on your insurer, this optional coverage may be available as part of a package or as a standalone coverage. It may also be available only for brand-new cars.

Have more questions about car insurance coverages or a totaled vehicle? We would love to talk to you! Call us at (239) 593-7333.

 

Article found here: https://www.allstate.com/tr/car-insurance/what-if-car-totaled.aspx

 

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Florida Auto Insurance COVERAGE DESIGNED WITH YOU IN MIND

 

Finding the right car insurance for you means staying up to date on Florida requirements. The table below lists the coverages and minimum coverage limits that are required in Florida. Keep in mind, however, that minimum coverage limits are just a starting point. You may want to consider increasing your coverage limits for greater protection. 

Contact us at The Roe Agency (239) 593-7333 to better understand the different types of coverage in your area.

Bodily Injury Liability
Helps cover expenses related to the injury or death of another driver or a pedestrian when an accident is your fault.
           
Not required            
Property Damage Liability
Helps cover expenses related to the damage of another person's property —
           
like vehicles, homes, buildings and other structures — when an accident is your fault.
           
$10,000 limit            
Uninsured Motorist
Helps cover your medical expenses if you're in an accident, the other driver is at fault and doesn't have any insurance.
           
Not required            
Underinsured Motorist
Helps cover your medical expenses if you're in an accident,
           
the other driver is at fault and doesn't have enough liability insurance.
           
Grouped with uninsured motorist coverage
           
Personal Injury Protection
If you and/or your passengers are hurt in an accident, this helps cover medical or funeral expenses.
           
$10,000 limit            
Collision
Helps cover expenses to repair or replace your vehicle that's been damaged in an accident.
           
Not required2            
Comprehensive
Helps cover expenses to repair or replace your vehicle that's been stolen or damaged by things like storms or vandalism.
           
Not required2            
             
             

 

 

 

 

 

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Florida Auto Insurance COVERAGE DESIGNED WITH YOU IN MIND

 

Finding the right car insurance for you means staying up to date on Florida requirements. The table below lists the coverages and minimum coverage limits that are required in Florida. Keep in mind, however, that minimum coverage limits are just a starting point. You may want to consider increasing your coverage limits for greater protection. 

Contact us at The Roe Agency (239) 593-7333 to better understand the different types of coverage in your area.

Bodily Injury Liability
Helps cover expenses related to the injury or death of another driver or a pedestrian when an accident is your fault.
           
Not required            
Property Damage Liability
Helps cover expenses related to the damage of another person's property —
           
like vehicles, homes, buildings and other structures — when an accident is your fault.
           
$10,000 limit            
Uninsured Motorist
Helps cover your medical expenses if you're in an accident, the other driver is at fault and doesn't have any insurance.
           
Not required            
Underinsured Motorist
Helps cover your medical expenses if you're in an accident,
           
the other driver is at fault and doesn't have enough liability insurance.
           
Grouped with uninsured motorist coverage
           
Personal Injury Protection
If you and/or your passengers are hurt in an accident, this helps cover medical or funeral expenses.
           
$10,000 limit            
Collision
Helps cover expenses to repair or replace your vehicle that's been damaged in an accident.
           
Not required2            
Comprehensive
Helps cover expenses to repair or replace your vehicle that's been stolen or damaged by things like storms or vandalism.
           
Not required2            
             
             

 

 

 

 

 

 

 

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