When you hit a pothole, your car starts to shudder and the damage is evident. Congestion on the roads isn’t the only thing causing havoc; accidents happen, too. And when these accidents happen, who pays for the damages? The answer is insurance. And in many cases, when a car is totaled, the insurance company will not pay for the entire car—they will only pay for what’s called “the fair market value” of the vehicle. To figure out what this amount is, insurers use a number of factors to determine its value.
These factors can include: age, make, model and condition. But even with all of this information at their disposal, insurance companies still make mistakes occasionally. In these cases, you may be able to get your car paid for more than what the insurer initially offered. To learn more about your rights after an accident and how to maximize the chances of getting your car paid for more than what was originally agreed to, read on!
What is Totaled Car?
If your car is totaled in an accident, the insurance company will likely pay for the cost of the vehicle. The amount that they will pay will vary depending on a few factors, including the make and model of your car, the age of the vehicle, and the deductible that you have set.
Types of Insurance
The cost of a totaled car can vary depending on the type of insurance policy you have. Here are some of the most common types of insurance and their respective rates:
Auto Insurance: The average cost for auto insurance is around $1,000 per year. This coverage typically covers damage to your car caused by another vehicle, but it may not cover damage done when you hit something else with your car.
Homeowners Insurance: Homeowners insurance typically pays for damages to your home that are caused by an accident, including totalled cars. The amount you pay will depend on the value of your home and the coverage that your insurer offers.
Personal Injury Protection (PIP): If you are injured in an accident, PIP may help cover some of the costs associated with emergency room visits, surgery, and medications. In many cases, PIP will also cover lost wages for a specified period of time.
Uninsured Motorist Insurance: Uninsured motorist coverage will help you pay for medical expenses if someone is at fault in an accident and they don’t have any insurance. This coverage can be expensive, so it’s important to compare rates before purchasing it.
How Much Will Insurance Pay For Totaled Car?
When a car is totaled, the insurance company will pay out the full value of the vehicle. In most cases, this amount is based on the vehicle’s policy limit.
Conclusion
Totaled car insurance can be expensive, so it is important to understand the different types of coverage available and what each one entails. Some policies will only cover damage that exceeds a set dollar amount, while others will include both primary and excess coverage, which means that regardless of the total cost of the repairs, you are still covered. No matter what type of policy you have, it is always a good idea to get an estimate from your insurer in case there are any unexpected surprises.
