What does Totaled Car Mean?

Totaled Car Meaning

In the insurance world, the term ‘totaled’ means the total loss. In simple terms, while getting your damaged car repaired, if the expenses exceed the total price of the vehicle then it is called Total loss. It makes no sense in repairing the damaged vehicle which is expensive as the user can purchase a new vehicle. In such situations, the insurance company provides cash for the vehicle and it considers the vehicle a total loss. 

Generally, the drivers of the vehicle get tense when they get to know from the insurance company that their car is totaled. For the insurance company, it is a pile of steel as the cost of the repair exceeds the cost of the vehicle. The decision about the car is finalised based on the amount of money which is payable by the insurance company. But people who are attached to the car will want to look for other options instead of the totaled option given by the insurance company. 

Some car owners will look for options where they will want to work with the insurance company and find out the ways to make things happen with the vehicle. For suppose, getting the car spare parts from the trusted manufacturer, or getting spare parts from shops that will use non-manufacturer body parts which may reduce the expense for repairing the car. This again depends on the owner's choice and it is not suggested by the company. 

The insurance companies work with strategies that include the expenses for the cost of repairs, vehicle rent, towing, expenses related to complicated repairs. If the owner of the vehicle is more attached to the car then the insurance company provides an option to keep the vehicle with themselves. The insurance company will not provide any compensation and this will affect the cash inflow. 

Calculation of actual cash value

If your car is declared totaled by the insurance company then you will be given the actual cash value of the car. This amount is decided by the estimation with an adjuster of the car value before the actual accident. In most of the situations, the amount paid by the provider will fall lesser than the original cost of replacement of the vehicle. Totaled vehicles are considered as not viable for the insurance company and also the drivers. For the insurance company it is scrap and for the driver it is not safe to drive on the roads. 

Is the car totaled if the airbag is deployed?

It is a common assumption that if an airbag is deployed then it will render the car totaled. Airbags deployed will not total a car. The expenses for replacing the airbag with already existing repairs costs will increase the expenses which will become higher than the actual car value of the vehicle. Airbags price is higher with additional expenses on replacing modules and other parts

If you total a leased car then what will happen?

The expense for the driver will increase if there is an accident with the leased car.  If an accident occurs to the leased car then the insurance on the vehicle will be at risk to pay the actual car value to the company at lease. The owner or the driver is also responsible for the remaining scheduled payments on the vehicle to the leasing company. Most of the time it is observed that the remaining amount on the lease will increase the insurance payment amount and the driver will have to pay out the remaining balance.

Make the most from Car wreck

Suppose if your car is wrecked and it has been totaled in the accident then it is very important to do the following steps. In this unfortunate situation do your best as much as you can, as both the insurance company and yourself can get the most out of it. After the accident, be careful and do the following things.

• Remove your personal belongings - When the incident happens be sure to remove your personal belongings such as your documents, papers, wallet and other belongings. You may not be able to have access to these items as it depends on what happens next. 
• Report & File Claim - It is very important to report the accident and file your claims as quickly as possible. A total claim can take weeks to complete. The more quickly you file your claim, the more it is easy and faster to process your claim. The insurance company will start to work on your claim as you report and file your claim. Do not delay any of your actions. 
• Tow your vehicle - Make arrangements for towing your vehicle to the nearest mechanic shop for repairs. If possible get it towed to the repairs shop which is allocated and preferable by the insurance company. Insurance companies work with many shops and once you're into the insurance company’s preferred repairs shop the claims process can speed up. Be ready to pay for the towing and storage fees. If you are taking your car to the preferred shop then they will not charge for holding your vehicle. 
• Car loan - Review your car loan and find out the balance payable on the car loan. If the car loan payable is more than the current value of the car then the insurance company will consider it as a loss claim. The best way suggested for the driver is to purchase gap insurance. This gap insurance provides coverage by paying the difference between the car value and the outstanding loan amount. 
• Research - Doing research is always a good idea to find out if the amount payable by the insurance company on your totaled car is reasonable or not. If you have recently added any assets to your car then it is very important to provide the receipts to the insurance company as improvements on your vehicle. If these assets are not damaged then there could be a good amount payable to you. 
• Paperwork - In totaled car situations, there is more paperwork involved. If you finish all your paperwork by filing, naming and providing all your documentation it will help in expediting the claim process. If there is any loan payable on the car then you will need a notary with the transfer of ownership to the insurance company once the loan is paid in full. 

Options available for the Insurer

The insurer will have the option to replace the car or provide compensation. If the insurer is providing car replacement then it will be a model compared to the totaled value. Ensure to check the car condition which should be good as your car prior to the accident. The insurance provider should purchase it from a good dealer, it should be provided with a warranty. 

Options available to the Car Owner

The car owner has the option to reject the car replacement and insist on cash settlement. The insurance company will then settle with the payment which includes the transfer fee and the taxes.

You can accept the claim amount offered to pay by the insurance company.