How Much Does Car Insurance Give For A Totaled Car?

  1. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    The amount can vary by car and company, but there is a gneral rule of thumb that is a pretty good guide.  Usualy, a car is "totalled" when the insurance claims adjuster appraises the damage and compares the cost to repair with the "book value" of the car.  There are various sources to determine the value of a car including, but not limited to, Kelly Blue Book or the NADA guide as examples.  Generally, if the cost to repair is about 70% of the car's value, it is likely that the adjuster will recommend categorizing the car as a total loss and will offer you a settlement sum that is in the neighborhood of the repair cost.
    Answered on July 30, 2013
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    When it is determined that the cost to repair a car is greater than the value of the car the adjuster contacts the owner and tells them of the decision.  At that time the adjuster will make an offer for the car based upon current market conditions, minus the deductible if applicable.  The insured can either accept or decline the offer.  A settlement means that the company and the policyholder agree on the amount.  The title to the car transfers to the insurance company.
    Answered on July 3, 2014
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