What Happens When Your Nearby Body Shop Determines Your Car Is a “Total Loss”?

Getting in an accident is terrible, and the aftermath can be confusing. Who is responsible? Do you owe for repairs? This leads you to look for a body shop nearby where professionals can help you get the answers.

Why Is My Car Totaled?

The term is misunderstood, and the body shop nearby is blamed. A local repair shop alone can’t determine the totality. Your insurance company determines if your car is a total loss. Factors such as the amount the body shop often quotes for the cost of repairs go into the formula for the decision. Insurance uses the cost of repairs, car value, and other factors in deciding whether your car is a total loss.

Can I Keep the Car Once Totaled?

The truth is that this is between your insurance company and yourself. In most circumstances, the answer is yes. It is unusual for the value calculated to be less than the value insured. You are responsible for the difference between repairs and insurance payouts. Also, you have negotiating room with each company to keep the difference minimal. You should note that this car will have a salvage title, thus decreasing the value.

What Do I Do When I Still Owe Something on a Totaled Car?

In short, you are responsible for what you owe. Your insurance company calculates the value, and you can negotiate the payoff. You will get quotes from a body shop nearby and send these to the insurance company. When there is a loan, the bank that holds the title will get paid. You will not get it, and anything short, you owe.

What if I Owe More Than Insurance Pays?

It is never a good situation. The car owner is always responsible for the loan. This is true when totaled vehicles still have loans above insurance coverage. This is the risk when stretching a large car price over many payments. It is also a risk when purchasing a vehicle for too much. It is even harder when the accident isn’t your fault. You can protect against this with GAP insurance. It is important to remember to bring this up with your agent.

How to Determine a Total Loss?

While it is a basic math formula, it isn’t quite as simple as the value of your car minus the repair cost. Your insurance company uses massive databases to determine car values. It receives the repair cost from a body shop nearby. The company uses the database to get an accurate salvage value for your vehicle. It uses this formula to decide totaled cars: the value of the car less the cost of repair equals salvage value. The formula leaves little room for error.

In selecting a quality body shop nearby, don’t let Reed-Lallier Body Shop in Fayetteville, NC, go under your radar. Our licensed technicians are ready to help with all repairs. Contact us today, and one of our technicians can walk you through a repair estimate. We are happy to take the time to answer any questions you may have from your body shop nearby.