How to Get Rid of a Totaled Car
Verify that your insurance provider has declared your car a total loss., Figure out the actual cash value of the car., Compare your insurer’s settlement figure with your own estimate., Sign over the title of your car to the insurance company.
Step-by-Step Guide
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Step 1: Verify that your insurance provider has declared your car a total loss.
An insurance company defines a totaled car as one which will cost more money to repair than the car is actually worth.
If your mechanic says that the car is totaled, have your insurance provider inspect the car and declare the car as totaled or not.The question of whether or not a car is totaled isn’t always an obvious one.
Sometimes your car will look like a flattened wreck, and you won’t be surprised to hear your insurer’s verdict.
Other times, though, it might look merely dinged up, but the necessary repair is so costly and the car as a whole so cheap that it makes sense to declare it totaled. -
Step 2: Figure out the actual cash value of the car.
Once your insurer declares your car totaled, they’ll come up with an actual cash value for the vehicle.
This is the amount that they’ll pay in order to purchase the car from you as a salvage vehicle and should be based on the fair market value of the vehicle before it was totaled.If an accident claim was made against your policy, the insurer will first subtract the deductible from the actual cash value before writing you a check.
If you still owe money on the car, you’ll have to pay it off with this check from the insurer. , Once your insurer declares your car totaled, you should do some research to figure out what you think the actual cash value of your car is.
Use the Kelly Blue Book or a car data website to estimate your vehicle’s market value, and then subtract your deductible and any estimated expenses for the insurance company to dispose of your car once they take possession.If you disagree with the insurer’s figure, look into your policy and see if you can hire an appraiser for a second opinion.
If the appraiser also disagrees, you and your insurer will go through arbitration to reach a settlement.
Just be sure that the disagreement is significant, as you’ll be responsible for paying for the appraiser no matter what comes out of the arbitration process., Once your insurer has paid you a check for the total loss of your car, they are the legal owners of the vehicle.
You finalize this transaction by recording the odometer reading, date of sale, and transaction cost on the title, then signing the title alongside a representative of the insurance carrier.Once this is done, your insurance representative will let you know when they'll have someone pick up or tow away your car.
If you have a car loan, your lender holds the title to the car and must be involved in the transaction. -
Step 3: Compare your insurer’s settlement figure with your own estimate.
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Step 4: Sign over the title of your car to the insurance company.
Detailed Guide
An insurance company defines a totaled car as one which will cost more money to repair than the car is actually worth.
If your mechanic says that the car is totaled, have your insurance provider inspect the car and declare the car as totaled or not.The question of whether or not a car is totaled isn’t always an obvious one.
Sometimes your car will look like a flattened wreck, and you won’t be surprised to hear your insurer’s verdict.
Other times, though, it might look merely dinged up, but the necessary repair is so costly and the car as a whole so cheap that it makes sense to declare it totaled.
Once your insurer declares your car totaled, they’ll come up with an actual cash value for the vehicle.
This is the amount that they’ll pay in order to purchase the car from you as a salvage vehicle and should be based on the fair market value of the vehicle before it was totaled.If an accident claim was made against your policy, the insurer will first subtract the deductible from the actual cash value before writing you a check.
If you still owe money on the car, you’ll have to pay it off with this check from the insurer. , Once your insurer declares your car totaled, you should do some research to figure out what you think the actual cash value of your car is.
Use the Kelly Blue Book or a car data website to estimate your vehicle’s market value, and then subtract your deductible and any estimated expenses for the insurance company to dispose of your car once they take possession.If you disagree with the insurer’s figure, look into your policy and see if you can hire an appraiser for a second opinion.
If the appraiser also disagrees, you and your insurer will go through arbitration to reach a settlement.
Just be sure that the disagreement is significant, as you’ll be responsible for paying for the appraiser no matter what comes out of the arbitration process., Once your insurer has paid you a check for the total loss of your car, they are the legal owners of the vehicle.
You finalize this transaction by recording the odometer reading, date of sale, and transaction cost on the title, then signing the title alongside a representative of the insurance carrier.Once this is done, your insurance representative will let you know when they'll have someone pick up or tow away your car.
If you have a car loan, your lender holds the title to the car and must be involved in the transaction.
About the Author
Douglas Palmer
A passionate writer with expertise in crafts topics. Loves sharing practical knowledge.
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