When a Vehicle Is Totaled, What Are the Drivers Options (Collision Centre)

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Accidents can happen even to the most cautious of us. Worst still, an accident doesn’t need to be that bad to cause irreversible damage to a vehicle. Sometimes, the value of a complete repair exceeds the value of a new vehicle, which is pretty much like losing the vehicle. If you arrive in this unfortunate situation, there are some options for you and what to do with your totalled car. Come with us and learn more.

The Insurer’s Perspective

No matter how bad an accident happens to your car, you must contact your insurance company. The company will then appoint a claim adjuster to verify your case, who’s to blame, and whether it’s worth repairing the damage if it’s repairable at all.

Typically, insurers consider a car to be totalled when the cost of the damages surpasses 80% of the car’s original value. Still, if the claim adjuster says your car is totalled, it isn’t the end. Here are some of your options in this case.

Make Money With It

Taking the insurance payment is the easiest way forward here. While details might vary from one policy to another, typically, this process involves replacing your vehicle with a comparable one or a cash payment according to the car’s value. Using a totalled vehicle as a trade-in for a new car is also possible. Additionally, consider selling the parts that haven’t been damaged or even selling the whole of it to a junkyard.

Keep Driving It, Anyway

Sometimes, a car is still drivable, even after being considered totalled by the insurer. You can keep driving it as-is in this case. However, it’s crucial to have a mechanic check to ensure no critical part has been damaged and that it’s safe to drive.

Pay for the Repair

Your insurer may not want to cover your vehicle’s repair, but nothing stops you from doing it yourself. Should you choose this course of action, some things must be considered first. Most importantly, check if it’s possible to restore it to drivable conditions and the final cost of all repairs. Also, consider how long the repairs will last; if you’ll need to pay frequent maintenance visits.

Make a Donation

If you don’t want to sell your car, it’s still possible to donate it to organizations that might have use for it in their operations. Although you won’t make any money with it, you can still claim a tax deduction for this transaction. If the organization sells your car, you claim a deduction based on that value. Remember to keep all receipts and other related documents to support your claim.