In some cases, that may mean you are also reimbursed for the deductible that was subtracted from your insurance payout. If your vehicle's airbags deploy in a car accident, that does not necessarily mean your car is a total loss. Your insurance adjuster will assess the situation and determine if the cost of replacing the airbags and repairing your vehicle would exceed its actual cash value.
If the cost of repairs is less than the value of your car, your vehicle will likely not be declared a total loss. Have more questions about car insurance coverages or a totaled vehicle? Talk to a local agent. Retrieve a saved quote. Skip to main content Explore Allstate. Popular Searches. Allstate We help customers realize their hopes and dreams by providing the best products and services to protect them from life's uncertainties and prepare them for the future.
Skip to main content Toggle navigation Log in. Edit location. Select a product to get a quote. Register new account Pay your bill. Get your ID cards. Updated: May A car is generally considered totaled when the cost to repair the car exceeds the value of the car.
To do this, the adjuster evaluates your vehicle's condition and produces an estimate of its worth based on the make, model, year, mileage, and vehicle options. In situations where an accident results in a total loss at the fault of another driver, the at-fault driver's insurance will usually pay you the value of your totaled vehicle. If your car is damaged beyond repair as a result of a falling object, for example, and you have comprehensive coverage insurance, your insurer will likely pay you the cash value of your vehicle minus the deductible.
The short answer: yes. Usually, the insurance company will take ownership of your vehicle by transferring the title to their name. If you decide to keep your car, the salvage value will be deducted from your settlement total. Some states have specific guidelines relating to owner-retained total losses, so be sure to check with your claims adjuster to fully understand what this entails. But you should be aware that you may have to pay out of pocket to cover the cost.
Are you responsible for paying the balance? This money can then be used for you to buy a replacement vehicle. While KBB is a guideline, it is a good indicator of whether you can expect your insurance company to cover the cost of repairs or give you money to replace your car.
And even if the repairs are doable, if they cost more than what the car costs, the insurance company will declare it totaled. Just like the age of your car is a factor, so is the number of miles on the car. Donating a totaled vehicle to a nonprofit organization is another option. There are a number of charities that accept vehicle donations, including cars that have been totaled, to support their operations. An added benefit of donating a totaled vehicle to charity is that you may be able to claim it as a tax deduction.
To support your tax deduction, be sure to get a receipt showing the date of your donation and the name of the nonprofit organization. If you're planning to buy another car, the dealership may allow you to use a totaled vehicle as a trade-in. It's a good idea to get a professional appraisal of the vehicle to make sure a dealer is offering you a fair amount in trade.
A final option for dealing with a totaled car is paying to repair it yourself. You might consider this route if your insurance won't pay for repairs, but you want to keep the car and make it road-ready again. When weighing whether to repair a totaled vehicle, consider:. Some types of cars will be more expensive to repair than others. For example, parts for an older car may be harder to come by than parts for one you bought a couple of years ago.
But it may be worth the added expense if the car has a higher value, or you want to hold on to it for sentimental reasons. If you need to take out a loan to pay for repairs, consider what kind of payments you'll be able to afford and how much you'll pay in interest and fees. If you think you may trade in the car two years down the line, but it'll take three years to pay off a loan, for example, it may not be worth it. Internal Revenue Service.
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