If it would cost more to fix a car than it is worth, insurance companies will usually decide to “total” it. This can also be called a “write off,” as in “written off as a total loss. In fact, this can happen even if the cost to fix it is only 70% to 75% of the vehicle’s value.
Your insurance company will buy your car from you instead of paying to fix it if they decide to “total” it.
Some people don’t want to take the money from their insurance company to buy a new car when theirs is totaled. This is especially true if they still owe money on the first car or think they can fix it for less than what the insurance company says it will cost.
The check from your insurance company probably won’t be enough to buy a new car by itself, especially since car prices are going up all the time. In other words, if your car is totaled, you might have to pay the difference yourself.
There are ways to fight back if your insurance company wants to write off your car after an accident, but you don’t want to.
How to Handle When Your Insurance Company Wants to Repair Your Car After an Accident
Having your car damaged in an accident is never fun. Even if you weren’t at fault, dealing with insurance claims, auto body shops, rental cars, and unexpected repairs can be a huge hassle.
One common scenario that can leave drivers feeling frustrated is when your insurance company wants to repair your vehicle after an accident but you think it should be considered totaled. This situation leaves you with some options but maneuvering insurance policies and state laws can be confusing.
In this article, I’ll walk through what to do step-by-step when your insurance company wants to fix your car after an accident, but you think it should be totaled. I’ll cover:
- What factors determine if a car is totaled
- When you can push back against repairs
- Negotiating with insurance for a total loss
- Understanding diminished value claims
- Ensuring proper repairs are made
Follow along for tips that will help you get the best outcome when your insurer wants to repair your car after an accident.
When Can Insurance Companies Decide To Repair vs. Total A Car?
After an accident, your insurance company will send out an adjuster to inspect the damage and determine whether your vehicle is repairable or should be considered totaled.
The specifics vary a bit by state, but in general a car is considered a total loss when:
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The repair estimate exceeds a certain percentage of the car’s pre-accident value. This threshold ranges from 50% to 100% depending on your state laws.
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Structural frame damage makes the car unsafe to repair.
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Airbag deployment, flood damage, or other factors make repairs exceed the car’s value.
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The insurer determines repairs would be more expensive than paying out the car’s actual cash value.
If the damage doesn’t meet this criteria, the insurance company will likely opt to repair your car. Their goal is to fix your vehicle for the lowest cost possible.
However, you may feel your car has sustained too much damage to repair properly. Here are some times you may want to push back on repairs instead of totaling:
- The car was flooding during a hurricane storm surge
- The vehicle rolled over multiple times in the accident
- There is frame damage even though repairs are under the total loss threshold
- You don’t feel safe driving the car after repairs
In these cases, you may need to negotiate with the insurance company and provide evidence on why the car should be totaled vs. repaired.
Negotiating With Insurance to Total a Car Instead of Repair
If your insurance company wants to repair your vehicle but you think it should be totaled, you have a few options:
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Send a professional appraisal: Hire an independent auto appraiser to inspect your car and provide an estimate on repairs. Their report can counter the insurance company’s position.
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Provide repair estimates from body shops: Get quotes from reputable auto body repair shops in your area to substantiate that repairs exceed your car’s value.
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Negotiate on safety concerns: Explain to your claims adjuster if you have concerns over the car’s safety and drivability after repairs are made. Photos documenting damage can help.
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File a complaint with your state: Most states have an insurance commissioner’s office that assists with claim disputes. Filing a complaint can prompt the insurer to reconsider.
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Consult an attorney: For severe accidents with injuries, complex damage, or issues with bad faith, consulting a personal injury attorney can be beneficial. They can often negotiate more successfully with insurance companies.
The key is to remain calm but firm when asking your insurance company to reconsider totaling your vehicle. Be persistent and escalate the issue respectfully up the claims chain of command if needed. With preparation and patience, you can often get the insurer to change the disposition from repairs to a total loss.
Understanding Diminished Value Claims After Repairs
If repairs are ultimately made instead of your car being totaled, you may have concerns over its resale value and safety after repairs are complete. This is known as diminished value.
Unfortunately, most states do not require insurers to pay diminished value claims. But there are a few things you can do to recoup the loss in value:
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Opt for OEM manufacturer parts instead of cheaper aftermarket parts when repairs are made. This better retains the car’s value.
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Ask the body shop to document all repairs made in the estimate and with photos. Thorough paperwork trails help with diminished value claims.
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Pay to get a diminished value appraisal after repairs are done. Use this report when negotiating with the at-fault insurer.
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Charge the at-fault driver or their insurer for diminished value in small claims court. The appraisal will substantiate your amount.
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Check your own policy to see if you carry “new car replacement” coverage. This will pay to replace your vehicle if repairs exceed a threshold after a certain timeframe.
While diminished value can be challenging to recoup, proper documentation and diligence during repairs can help you build a strong case with the insurance company.
Ensuring Proper Repairs Are Made to Your Vehicle
If your car ultimately ends up being repaired vs. totaled, you’ll want to ensure the job is done properly. Here are some tips:
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Choose a reputable repair shop known for quality work and good reviews. Get an itemized estimate from them.
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Request OEM parts be used, not cheaper aftermarket knockoffs. This retains safety and value.
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Ask for old damaged parts to be returned to you after repairs are complete. This preserves evidence if issues emerge later.
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Review the repair estimate line-by-line and ask questions. Understand what is being done.
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Request before and after photos to document how repairs are made. Thorough photo evidence is key.
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Test drive your car after repairs and point out any issues that still exist to the body shop. Ensure you are 100% satisfied.
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Keep all paperwork related to repairs and the accident claim in case you need records down the road.
By choosing a reputable shop and staying involved throughout the repair process, you can feel confident quality work is performed if your car isn’t totaled.
Using State Laws and Regulations to Your Advantage
Finally, make sure you understand your state’s specific laws regarding total loss thresholds and the claims process. Each state has different regulations – some are more consumer friendly than others.
Research online to see if your state has favorable laws in terms of total loss calculations, diminished value protections, or required timeframes for claim settlements. Use this information to politely point out relevant statutes when negotiating with insurance companies. Being informed on the laws can help strengthen your case.
Dealing with car repairs or total losses after an accident is certainly not fun. But hopefully this article has given you some tips to negotiate successfully with insurance companies and make sure your vehicle is properly taken care of after an incident.
Knowing your options and being persistent can help you reach the best outcome both financially and safety-wise. Don’t be afraid to push back if an insurer’s decision doesn’t seem right. With preparation and diligence, you can steer the process to an acceptable resolution.
You Can Appeal an Insurance Company’s Appraisal
Georgia uses a calculation called the “total loss formula” (TLF) to determine when a car is totaled. Take the fair market value/actual cash value (ACV) of the car and subtract the vehicle’s scrap value. If the remaining value is less than the cost of repairs, the car is considered totaled.
To avoid having your vehicle officially considered totaled, you will need to appeal the insurance company’s appraisal. There are three ways you could go about it:
- Show proof that the price they quoted to fix the car is too high.
- Please show proof that their estimate of the car’s ACV is too low.
- Show proof that their estimate of the car’s scrap value is too high. If the scrap value is low, they won’t want to tow it away and sell it as scrap.
For instance, the insurance company may figure out the car’s ACV by looking at its average mileage for its age. But if the car was in good shape and had low mileage before the accident, it may be worth more than the adjuster first thought.
You will have to do a lot of work to get estimates from repair shops and salvage yards for most of these appeals. You will likely need to provide proof of regular maintenance. You may want to hire your own independent appraiser or even a lawyer. You may want to do this, though, because it’s the only way to keep your car from getting a damage title.
Related Video: Bad Faith Insurance Claims
If you like, you can simply keep the vehicle. After that, you can fix it yourself, sell it for scrap, or even trade it in for a new car; some dealerships will take totaled cars as trade-ins. However, no matter what you decide to do, the car will still be considered legally totaled.
I have seen situations where compliant repairs were made for far less than the body shop estimates. The owner of these cars had to pay for all the work, but they could later get the money back.
Keep in mind that if you are still making payments on the car, you will need to get permission from the lienholder (the company that financed the car) to do this.
If your insurance company totals your car, they will buy it back from you. But if you want to keep the car, your insurance company may let you buy it back. The insurance company will still write you a check for the car, but it will be less than what you expect because they will take out the scrap value of the car first.
Once a car has been totaled, it won’t have a clean title anymore, or ever again. It will be given a “salvage” title, which means it is considered totaled and can’t be driven legally again until it is fixed completely. After it was fixed, a licensed Georgia Department of Revenue inspector had to check it out to make sure it was safe to drive. Only then could it get a “rebuilt” title. It takes time, but the process can be done.
There are a lot of people who might not want to buy your car after you fix it up, so keep that in mind if you decide to sell it. They may worry whether the repairs were done correctly and may believe the car is unsafe.
Also, it might be hard to get insurance for a car with a salvage title if you still want to drive it. You might have to pay more for insurance if you decide to fix your car instead of buying a new one with the money you save. This is because insurance companies also don’t trust cars with salvage and rebuilt titles. They often think these cars are more likely to break down and cause an accident.
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FAQ
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