What happens when you total your car?

What happens when you total your car ? visualize : Young woman in a car accident, standing on the side of the road on her earphone asking what happens when you total your car An insurance company broadly considers a car totaled when the cost of repairs is more than the vehicle is deserving. Depending on how your car is totaled and the types of car indemnity coverage you have, your indemnity company may reimburse you for the current prize of your cable car ( minus your deductible ). And if you ’ re in an accident caused by another driver, their indemnity may pay you. editorial eminence : Credit Karma receives compensation from third-party advertisers, but that doesn ’ thymine affect our editors ’ opinions. Our third-party advertisers don ’ t review, approve or endorse our column contentedness. It ’ randomness accurate to the best of our cognition when posted.

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Totaling a car can be a scary — and expensive — situation.

A car accident can be person ’ s blame or merely plain badly luck, like if a tree falls on your vehicle. But no matter how it happens, a totaled vehicle can be a real pain .
If your vehicle is totaled, one of your first questions is credibly how you ’ ll get a new one and whether indemnity will cover the personnel casualty. While the answer varies from one situation to another, one thing is clear : A solid car insurance policy can help get you back on the road while protecting your finances .
Let ’ s take a count at how indemnity companies decide whether a fomite is a total loss, how you might be protected and whether you can expect to pay out of pocket if your car is totaled .
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What does it mean when your car is totaled?

Your vehicle can be damaged — and even totaled — in many different ways .
There are collisions, which occur when your car strikes another fomite or object, like a deer or even a tree. Collisions can involve one car or many .
Cars can besides be damaged in non-collision situations. These include weather events, like big hailstorms and floods, fire, vandalism or falling objects .
No matter how your cable car is damaged, you ’ ll want to file a claim with your car policy company if you ’ rhenium hoping to get the loss covered. Your insurance company will send out an adjuster who will inspect your fomite ’ sulfur damage and estimate the monetary value to repair it .
A fomite is considered totaled if the cost to repair it is estimated to be more than its current rate. When this happens, insurance companies may declare the car a sum loss, according to how your state of matter defines a entire personnel casualty .
For exemplar, some states, such as Alabama and Kansas, may only require that the damage equals 75 % of the vehicle ’ s value in orderliness to be declared a total loss. so if you live in one of these states and your car is worth $ 10,000 and repairs are estimated to cost $ 7,500, your indemnity company would declare it a total loss.

Will my car insurance cover my totaled car?

If your cable car has been declared a sum passing, your biggest concern — assuming that everyone involved is very well — may be how you ’ ll replace your cable car and whether policy will cover it. And that depends on your car indemnity coverage and how your fomite was totaled in the first place .
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If you were in an accident where another driver is found at-fault …

If the other person has property damage liability coverage, it will likely help cover your personnel casualty, up to the driver ’ s coverage limits .

If your car is badly damaged by weather, vandalism, fire, an animal or a falling object such as a tree …

Your comprehensive examination coverage ( if you have it ) may pay the actual cash value, or ACV, of your fomite minus the deductible on your policy. To determine your car ’ sulfur ACV — basically, its fair market rate — your policy company will take into account factors such as your fomite ’ s age, mileage and condition ampere well as the cost of exchangeable cars in your grocery store .
Some car insurance companies besides offer what ’ sulfur called new-car successor coverage. If your vehicle is totaled, this coverage may give you the money to purchase a sword new car of the lapp make and model versus reimbursement for your car ’ s current value .

If your car is totaled following a collision, such as hitting another vehicle or object or being involved in a rollover …

Your insurance company may pay the actual cash rate of the vehicle minus your policy deductible if you have collision coverage .
note that comprehensive and collision coverage are optional for drivers, but they may be required if you finance or lease your vehicle. If you own your car and don ’ triiodothyronine have either coverage, you may not be protected in certain situations if your vehicle is totaled .

Do I still have to make payments on a totaled car?

You ’ ll have to continue making payments on your fomite, even if it gets totaled .
once your total personnel casualty claim is settled, your policy caller may issue a claim hindrance made out to both you and your lender, with funds going toward your remaining car loan remainder first .
But what if you owe more to your lender than you receive from the policy company ? In that case, you ’ ll however be responsible for the remaining balance, which will need to come out of your own air pocket. To prevent this situation from happening, you may want to consider purchasing guaranteed asset protection, or gap, coverage .
Gap indemnity can pay the difference between the value of your vehicle and what you placid owe on the car lend or rent. This coverage can help you avoid a hefty out-of-pocket expense if your vehicle is totaled while you ’ re still paying it off .

What’s next?

Don ’ t wait until your vehicle is totaled to start thinking about whether your car indemnity coverage adequately protects you. even if you don ’ metric ton finance or lease your vehicle, you may still consider getting comprehensive and collision coverage. These can offer you added fiscal auspices — specially if your car gets totaled .
If you aren ’ triiodothyronine sure which types of indemnity coverage you presently have, take a look at your policy or contact your policy agent or company.

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About the author: Stephanie Colestock is a personal finance writer with a passion for helping readers take control of their money. If it has to do with planning for the future, getting out of debt, or even traveling the world on points… Stephanie Colestock is a personal finance writer with a love for helping readers take manipulate of their money. If it has to do with planning for the future, getting out of debt, or even traveling the world on points… Read more.

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