Here Is How to Evaluate A Totaled Car

A car accident is devastating both emotionally and financially. However, it’s more distressing when the insurance company declares the vehicle a total loss or “totaled.” It means that the accident has extensively damaged the car, and either it is unfixable or the repair costs would exceed the actual value of the vehicle. An insurance company does not pay for the repairs of a totaled car. Typically, the insurance company owes the car owner the vehicle’s actual worth, depending on the auto insurance policy.

How is the actual cash value determined?

The actual cash value (ACV) is the value an insurance company places on a car that has been declared totaled. It is cheaper for insurance companies to help the car owner replace the vehicle than to pay for its repairs. The company determines the pre-collision value of the car by considering factors such as the car’s make, model, age, condition, mileage, signs of wear and tear, salvage value of the metal and other parts, history of accidents, and the resale value in the local auto market, minus any deductibles for comprehensive or collision coverage. An older car will have a lower ACV than a newer vehicle.

Options for a totaled car

When an insurance company decides that a car is totaled, the vehicle owner has two options: either let the insurance company keep the car and accept the check of the actual cash value determined by them or keep the car themselves. The company then pays the check after deducting the salvage value amount.

There are several options for an owner who decides to keep the totaled car. The owner can repair it, sell the parts still in good condition, or sell the car to a junkyard. 

The best option is selling the car to a company that buys junk cars for cash. 

How to sell a totaled car?

It is possible and completely legal to sell a totaled car, though it is essential to check the state laws regarding the process. Let’s look at what a car owner can do to sell a totaled vehicle:

Ensure that the car is totaled

Before selling the car, contact the insurance provider to examine the damaged vehicle and officially declare it totaled. However, don’t accept the company’s check of the value determined by them.

Obtain a salvage certificate

Collect the necessary paperwork from the insurance company and take the documents to the Department of Motor Vehicles to get a salvage certificate in place of the old car title.  

Get quotes from various companies

After obtaining the salvage certificate, contact a few junk car buyers to let them determine the car’s worth and take quotes from them.

Sell the car to the dealer who offers the highest value. However, many dealers charge for getting the car to the junkyard, while some offer car removal services for free. Discuss all the selling terms in advance to avoid any hassles later.

An owner usually gets more money for a totaled car by selling to a salvage dealer than taking money from the insurance company.  Contact cash for junk cars company for best deals if you are looking to sell a totaled car at a fair price.

If you are in the Phoenix Metro area and want a no-hassle cash offer on an old, wrecked, unwanted, salvage or burned car, SUV, van or truck, give us a call at I Buy Junk Cars. 480-771-8290.