What happens if the damage on my car, is worth more than the car itself?

I got in a car accident a while ago… I have a 92 Honda civic, which is worth about $2000. The accident wasn't my fault since I got hit from behind. The person who hit me… Her insurance told me that the damage might be worth more than the car when they came to appraise the damage, and that if that's the case… They would have to consider it totaled or something like that. What's supposed to happen? What are they going to do?

I got in a car accident a while ago… I have a 92 Honda civic, which is worth about $2000. The accident wasn't my fault since I got hit from behind. The person who hit me… Her insurance told me that the damage might be worth more than the car when they came to appraise the damage, and that if that's the case… They would have to consider it totaled or something like that. What's supposed to happen? What are they going to do? If the damage to your car exceeds the the fair market value of the car it will be considered a total loss. Most insurance companies consider a vehicle a total loss when the cost of repairs reach 75% of the value of the vehicle. If your cars is declared a total loss, the insurance company will pay you what they determine it to be worth and then they will take possession of your car and it will be sent to a salvage yard.

Every insurance company has their own way of figuring the value of totaled vehicles. Some go by "book value" weather it be Kelly Blue Book or Edmund's or another one. Some will do a internet search of dealers close to you and pay you the average of what the same make and model is currently selling for in your area. Most companies will also pay the taxes and transfer of license plates for whatever vehicle you buy to replace the one that was totaled. If they do offer to pay the taxes, they will only pay them up to the amount of the vehicle that was totaled. If they determine your car is worth $2,000 and you replace it with a $4,000 car, you will have to pay the taxes on the extra $2,000 above the cost of the car that was totaled.

As a claimant, you will have a better chance to argue with the insurance company over the replacement price, since the accident wasn't your fault.

I had a 93 Civic that was totaled sitting in front of my house last year. Kelly Blue Book valued the car at $2,600. The insurance company did an internet search, and the average selling price for that car in my "area", which they determined was a 150 mile radius, was $1,400. My car was in very good condition, and I had receipts for some very recent repairs, and argued until I got the full $2,600. The adjuster who looks at your car will help determine it's value based on overall condition and mileage.

If you feel that your car is worth more than what they offer you for it, you can argue with them and maybe get a better price as long as you have something that backs up why you think it is worth more. If it's totaled and written off (which usually happens when the damage is more than 75% of the value of the car to repair), you'll get a check in the amount to replace your car (usually the blue book value based on the year, condition, model and mileage). You use that money toward a new car. The involved insurance company will declare it a total loss, and if they accept liability will give you (or the lien holder if there's one) a check for the fair market value which has nothing to do with blue book.

Once the settle with you the vehicle is theirs and they take it to a salvage yard to try to recoup their losses by selling parts off it.

If you want to keep the vehicle sometimes you can buy it back for salvage value, but the title will be changed to salvage status and in some states you won't be able to use it on the road until you have it rebuilt, inspected, and a rebuilt title issues.

Generally best to let insurance take it away. They pay what the car was worth, and they take the car. They will pay you for the amount of the car thats it

If it's totaled and written off (which usually happens when the damage is more than 75% of the value of the car to repair), you'll get a check in the amount to replace your car (usually the blue book value based on the year, condition, model and mileage). You use that money toward a new car.

The involved insurance company will declare it a total loss, and if they accept liability will give you (or the lien holder if there's one) a check for the fair market value which has nothing to do with blue book.

Once the settle with you the vehicle is theirs and they take it to a salvage yard to try to recoup their losses by selling parts off it.

If you want to keep the vehicle sometimes you can buy it back for salvage value, but the title will be changed to salvage status and in some states you won't be able to use it on the road until you have it rebuilt, inspected, and a rebuilt title issues.

Generally best to let insurance take it away.

They pay what the car was worth, and they take the car.

They will pay you for the amount of the car thats it