Auto Repair Tips: How Insurance Companies Decide If a Car Is Totaled

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Dec 14, 2023 | auto repair

auto repair When you find yourself in the unfortunate situation of a car accident, you might wonder about the intricate process insurance companies follow to determine whether your vehicle can be repaired or if it’s considered a total loss. Let’s delve deeper into this process to gain a better understanding of insurance claims according to an auto repair expert.

Auto Repair Tips: Insurance For Totaled Cars

What Is the Significance of “Totaled”?

In the realm of insurance, the term “totaled” is a shortened version of “total loss.” Essentially, it means that when the cost of repairing the damages incurred in an accident surpasses the actual value of the vehicle, insurance companies typically conclude that the car is beyond auto repair in Knoxville TN. In simpler terms, they classify it as a total loss. Once this determination is made, the insurance provider compensates the car owner with a payment equivalent to the car’s assessed value.

The Multifaceted Decision-Making Process of Insurance Companies

auto repair While it may appear that the primary factor in determining a car’s fate is the expense associated with its repairs, insurance companies take several crucial considerations into account. Foremost among these is safety—the paramount concern is the well-being of the vehicle’s occupants, other drivers on the road, and pedestrians. Consequently, insurers evaluate all pertinent factors, which include the cost of repairs, the vehicle’s safety, and any concealed damages not immediately evident.

When a damaged vehicle is brought to a repair facility like ours at Miller Brothers Transmission Auto Repair and Body Shop, our responsibility is to conduct a meticulous assessment of the vehicle’s damage, both externally and internally. Subsequently, we furnish the insurance company with a detailed estimate of the cost required for a full restoration. The insurance company then takes into consideration the car’s overall value before arriving at a final decision.

Appraising Your Vehicle

Interestingly, insurance companies do not ascertain your car’s value in the aftermath of the accident; instead, they establish its worth prior to the incident. This value, often referred to as the actual cash value, serves as the basis for calculating the final compensation amount.

Various expenses, such as car rental fees, towing charges, storage costs, and salvage yard fees, are subtracted from this value. It’s worth noting that in many cases, opting to allow the vehicle to be sent to a salvage yard is a more pragmatic choice than retaining ownership.