Question First off, Richard Hixenbaugh, let me start by saying that you are truly a kind spirit for offering volunteered assistance in these fields. I must also tell you that I currently operate an online blog with hundreds of hits daily. I've since posted my current situation while allowing submissions of responses and and helpful suggestions that may be useful in my situation. Any information you provide will be coordinated with my blogs along with rating your answer upon return. I can't thank you enough simply for reading this submission, let alone offering further assistance.With that being said, I present you with a very difficult dilemma I am now facing and very kindly reach out for much needed assistance.
On April 15 2008, I was involved in a serious accident. I myself was not seriously hurt, nor were any other parties. It was only I that was involved in the accident. My brand new 2008 Toyota Corolla S, with only 6K miles was seriously damaged. Top to bottom, front to back. Although as of yet, I cannot say that is it going to be considered totaled for sure, but I'm preparing for it to be, considering the extensive damages.
Now, I'm aware how totaling a car works, being the repairs costing more than the vehicles worth. I believe the repairs to exceed my vehicles worth, but am not sure yet, as an adjuster is in the process of arranging for the examinations as this e-mail is being generated.
I'm very concerned and nervous, as this accident is going to literally destroy me financially. Not to mention that I've only had the car since July of 2007, purchasing it brand new. I'm very curious as to my options, as I've already been lightly browsing the web and search engines for "what to do when a car is totaled" and such. I suppose my question/concern lies in if there and alternative routes or options available to someone such as myself. The vehicle has "full coverage" as I didn't own it and way making payments on it. What do average people in similar situations do if their vehicle is determined "totaled"? I'm preparing for the possibility of the Insurance Company not cutting me the best check, considering what I still owe to be at $11,000. I'm hoping for at least that and maybe a few thousand more, but realize that this may not happen. I've searched around for similar cars as mine and the fair market value to be between $14,000 and upper $15,000. I'd certainly like to receive a check in this amount as I know the car would have easily sold for that amount had I sold it last week, per say.
I must not take any more of your valuable time. Can you offer any reassuring thoughts that may settle my nerves a bit? Am I to expect a reasonable check from my auto insurance company? Should I consider completely parting my car out piece by piece in online auctions, such as e-bay, to recouperate some of the money? Should I consider fixing the car, even if it is considered "totaled"?
Once again, that you Richard Hixenbaugh for any support you are willing to offer.
AnswerHi Jason,
A vehicle will generally be considered to be a total loss if the anticipated cost of repairs exceeds 75% of the vehicle's value. The decision to repair or total the car is completely up to the insurance company.
Insurance companies will generally make offers on totaled vehicles that is at the low end of the value range. In some cases they may offer as much as 25% below fair market value. There are several ways for you to check the value of your car, as follows.
1) www.nada.com
2) www.kbb.com
3) www.edmunds.com
4) www.autotrader.com
The last one will let you search for currently for sale vehicles like yours in your area. You should locate 5 to 10 similar vehicles, print out the info and average the values. This should give you a good average value. Then when the insurance company makes you an offer you will know if it is in a fair range. If not you can submit the info you found to engage the insurance company in a negotiation.
I hope this helps
Richard Hixenbaugh
