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.
Condition
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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