Were you just in a Portland Oregon car accident and after reviewing the damage your insurance company has told you that they are considering your car to be “totaled”?
The same thing has happened to millions of other people around the world over the last 10 years and many people are left wondering what the word “totaled” really means especially if the car still looks like it can be dive.
In this article we will break down the real meaning of the word “totaled” and give you some insight into what you can expect to happen next after your insurance company has made this distinction.
Car Totaled Definition
To keep things simple, the word “totaled” or “total loss vehicle” essentially means that your car, or the vehicle that you were driving, should not be repaired.
Why? The cost to repair the vehicle would essentially be more than the actual value of the car.
Many states also classify cars as total losses following car accidents so that if the car should somehow be sold, the future owner of the vehicle knows that the car would not be safe to operate.
Car insurance agencies determine if a vehicle is a total loss by first calculating the value of the car, once they know this number they will then determine how much money will be required to fix the car.
If the amount of money required to fix the car is more than what the car is worth then the vehicle will be classified as a “total loss”.
Some of the other reasons your car can be labeled a total loss following an automobile accident include if you were underinsured, or you only have liability only car insurance coverage.
When you’re under-insured your car insurance deductible will not cover the cost of the repairs to your vehicle.
This is especially true if you have liability only insurance coverage because your policy may only cover repairs or damages to other cars that were involved in the accident while your car will not be covered and you may be faced with having to pay for repairs to your vehicle out of pocket.
What Happens Once Your Car Has Been Officially Totaled?
After your car insurance company has determined that your car can be classified as a total loss, depending upon the amount of car insurance that you have, your car insurance company will pay you the fair market value for your vehicle.
Once you’ve been paid for your vehicle, your auto insurance company will then schedule a salvage yard to come and pick up your car and take it away for processing based on the regulations for your state.
This step is important because, it’s not ideal for a totaled car to return to market once it’s been repaired because, if a salvage title has been “washed”, an unsuspecting buyer may purchase the vehicle without any knowledge of the vehicles prior history.
“Washing” a car title is something that does occur in today’s Automotive Market because, there may be unscrupulous buyers out there who are able to fix up a totaled car with aftermarket parts.
Once the totaled car has been fixed up it’s not uncommon for the owner to sell it on the market for a quick buck, especially if the car has been moved to another state because, the owner of the totaled car can apply for a new title in the new state, essentially “washing” the title of any history related to the car being totaled.
Get Paid Cash For Your Totaled Car
If your car was recently totaled don’t accept less money than what it’s worth, call Fred’s Auto Removal today to get paid cash for your junk car. Contact us at (503) 810-1061 or CLICK HERE to connect with us online.