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Section 10
Is a Vehicle Repairable or is it a
Total Loss?
Usually, an appraiser representing the at-fault insurance
company will be assigned to estimate the damages to your vehicle. The
insurance appraiser will inspect and most likely photograph your
vehicle's damage. An estimate or repairs is created. The appraiser will
try to determine how much it will cost to repair your vehicle to its
condition before the accident. The insurance company is only obligated
to return your vehicle to its prior condition. They are not obligated to
purchase a new vehicle for you, or fix any damage that occurred before
to the accident.
Sometimes the estimate of the damages is higher than your car is worth.
Therefore, the actual value of your car is established by using the
following methods:
One method used to determine the value of your vehicle is to examine
current editions of the NADA official used car guide book. The guide is
published every month and provides estimators and automobile retailers a
standard way to appraise vehicle values. The estimator will most likely
figure the value of your car using the retail value that is published in
the NADA book. If your vehicle has added options it will likely increase
the value. Some things that may decrease the value of a vehicle are the
lack of options, high mileage, excessive wear and tear, preexisting
damage, and various other reasons. It is important to remember
after-market add–ons are not usually given extra value.
Another method insurance companies can use to determine the value of
your car is to complete a market survey. Specifically, this means that
the insurance company may call several automobile retailers to compare
your vehicle with a similar vehicle on their lot and average the retail
value of the car. Insurance companies typically call at least three
independent retailers to get an average retail value.
Please remember that a car is deemed to be a total loss only if the
insurance company has determined the repair cost will exceed the retail
value of the car. You will need to inform your lawyer whether or not you
hold the title to your vehicle. If you are making payments on your
vehicle it is safe to assume there is a lien holder on the vehicle and
you do not have the title. If your vehicle is determined to be a total
loss and the insurance company is offering a fair value for your car,
you will need to have the original title of your car.
Although we do not recommend this for safety reasons, sometimes the
client will be offered the opportSectiony to maintain possession of the
vehicle even though he has settled with the insurance company for a
total loss. Under those circumstances you will receive a little less
than the full value of the car, since you will be able to keep the
salvaged vehicle. A totaled vehicle may be drivable but, more
importantly, may not be safe for the clients and their family.
About 85% of automobile accident cases include property damage of
vehicles that are repairable. You will find that we most likely will not
recommend that you obtain vehicle estimates. After you have been given
the estimate for damages to your vehicle by the appraiser, we recommend
that you find a reputable body shop for repairs. Most reputable body
shops will not charge more than the estimate prepared by the insurance
adjuster. Rarely, a supplemental estimate is needed for one or more
items overlooked by the original estimator. Usually, the body shop and
the insurance company will resolve this problem without extra cost to
you.
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