Wednesday, 29 June 2016

Car Insurance: When is Your Vehicle Considered a Total Loss?

Ever been in a position where you had an accident with your car and your insurer tells you the car is totaled? This usually leaves many people confused as to how and why; especially when they think it was just a minor damage. We asked experts at Greater National Group to help simplify this for us. When the cost of repair is greater than the current cash value of the car, then the car is deemed totaled.

Age of the Vehicle

The first thing insurance companies look at is the age of the vehicle. A vehicle has a certain service age and as the years go by, the vehicle's strength diminishes. If the vehicle is already old, there's no need repairing it because it probably would soon expire.


The condition of the vehicle before and after the accident is another thing to look at. It's not about the physical appearance but it's actual working condition. The insurance company hires the services of a professional car mechanic to inspect the vehicle's condition.

Odometer Reading

Every vehicle's service life is measured by the odometer. Odometers read the distance traveled by the vehicle and the working life can be estimated using such readings.

Value of the Vehicle

By this, the price estimate of the car when it was bought and the current value in the local market. This, among all other factors, is used in determining if the car needs repairs or replacement. 

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