June 18, 2014
Solutions After a Car is Totaled
A totaled car can be a concern, primarily because it can seem like the solutions and options that are available can be limited. Although it may not be pleasant to drive a car after an accident, hail storm or similar situation, there are options available after a car has been damaged.
Accepting Funds From the Insurer
If an auto insurance provider determines that the car will cost more to repair than it is worth, then the company may offer to pay for the value of the car based on current market value and any depreciation rates. The exact amount can depend on the vehicle, the age of the car and the situation.
Accepting the payment from an insurer means that the vehicle was purchased from the company and is no longer a personal asset.
Repair the Car
It may be possible to repair the car, especially if the damage is primarily cosmetic. The downside of repairing the car is that it will come out of personal funds. Making a claim with the insurer can limit the options and may result in the car being declared a total loss.
When the car is repaired, it may be necessary to obtain a rebuilt title on the car and provide proof that it is safe to drive.
Donate the Car
Even if a car was completely totaled, it is possible to donate the vehicle. The charitable organization will use or sell the parts and the vehicle owner can deduct the donation from federal taxes.
A totaled car does not necessarily mean that options are limited. There are solutions to help recover the financial losses. To learn more about the solutions that are available in Mesa, AZ, contact the Brewer-Lloyd Insurance Group.