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How to Determine if a Car Is Totaled
Wednesday, May 13, 2009
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InstructionsStep 1: Receive an estimate from your mechanic of the cost to repair the car. The mechanic will also determine if the car can be repaired to a road safe condition. If it cannot, the car will be considered totaled.Step 2: Check your insurance policy for what percentage of the car's value the cost of repairs must exceed before the car is totaled. This can range from 51 to 90 percent of the car's actual value.Step 3: Check the current retail value of your car using Kelly Blue Book, NADA, and/or edmunds.com. Comparing multiple sites will give you a more accurate view of your car's value.Step 4: Multiply the percentage from Step 3 by your estimated value of your car. For example, if your car is worth $3,400 and your insurance company considers a car totaled if repairs cost more than 70 percent of the value, then $3,400 x 0.70 = $2,380.Step 5: Compare the result from the Step 5 to the repair cost estimate. If it is larger than the repair cost then the car is considered totaled. Continuing the example, if the repairs were estimated at $2,500, then the example car would be considered totaled, because the cost is more than $2,380. If the amount is close, you may wish to have a "tear down" done on your car. This means the mechanic will remove damaged parts to determine if there is underlying damage that could not been seen before. This can result in a higher repair estimate, making it easier for the car to be declared totaled.
Tips & Warnings- Insurance companies have their own methods of determining your vehicle's value, which may not agree with online sources.Payment for a totaled car may not equal what you owe for a newer car.
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