web analytics
The Fundamental of Getting the Best Insurance Offer for Your Totaled Car

The Fundamental of Getting the Best Insurance Offer for Your Totaled Car

Being involved in a major accident can be mentally and physically demanding. What adds to that stress is the worry of dealing with a totalled car. The best way forward is to get informed before accepting or rejecting an insurance offer for your totaled car.  In this post, we will leave you with the basics of how insurance companies calculate the value of a crashed vehicle. Armed with this knowledge, you will be better equipped to make a decision on whether you want to accept the insurance offer, sell your car, or get it repaired. 

What Is a Totaled Vehicle?

Contrary to popular belief, totaled car has absolutely nothing to do with how much auto insurance coverage your car has. Instead, it’s a simple calculation of whether it’s cheaper to buy a replacement vehicle or fix the crashed one. A car is declared totaled when the cost of repairing the vehicle surpasses the value of the car before it was damaged. Here’s an example. Let’s say you own a 2014 Toyota Camry that has a market value of about $10,000. Now, let’s assume you get into an accident and the car gets severely damaged. Upon inspection, if it’s found that the cost of repairing the vehicle, which includes buying replacement parts and labor cost, exceeds $10,000, then the car is officially declared as totaled.

How Insurance Companies Cover Totaled Cars?

After evaluating your crashed vehicle, insurance companies can declare your car as a total loss. This basically means they officially consider it to be a totaled vehicle. When declared a total loss, insurance companies feed the details of your vehicle in their totaled car value calculator software and then come with a value of the vehicle before it got into an accident. The make, trim, model, and year of your car are noted down along with other details to estimate the pre-crash market price of the vehicle. The insurance company then offers that sum as coverage for the damaged car.

What Happens If You Accept Total Loss Offer?

When insurance company hands you a check for your total loss vehicle, they essentially expect you to use the money to buy a replacement vehicle. It’s up to you to take that offer and allow them to take away the crashed vehicle or keep the vehicle and get it repaired yourself with your own money.

Can You Challenge the Insurance Offer and Ask for a Better Deal?

The short answer to that question is yes. However, before you start negotiating you should know how insurance companies calculate the pre-crash value of totaled vehicles. Insurance companies generally pick 5 cars of the same make, model, and year. They start by removing the most expensive and the cheapest vehicle from that list. They then calculate the average price of the 3 remaining vehicles and that’s the value they usually offer for the crashed car. As the vehicle owner, you have the right to ask for the details of the calculations. If you find out that the vehicles used to calculate the total loss coverage were somehow lesser in value, you have the right to negotiate or even challenge the offer.    

Browse our latest car database to discover more cars                    

Discover all-new BMW X4


Discover more automotive news & videos

Articles from the main page

Browse the latest new cars

Discover the latest new cars

The world’s most popular roadster, the Mazda MX-5, has a whole new look. After 25 years and over 947,00 sales worldwide, the new fourth-generation 2014 Mazda MX-5 (known as the Mazda Miata in the US) has finally been revealed. The MX-5 is one of Mazda’s most iconic models
Mazda revealed the all-new Mazda MX-5 Roaster
MINI SuperleggeraTM Vision
MINI SuperleggeraTM Vision
Only 500 serialized 2015 Alfa Romeo 4C Launch Edition coupes will be available through 86 Alfa Romeo dealerships (Four in Canada) this summer with a Canadian MSRP of $75,995; followed by the standard Alfa Romeo 4C coupe arriving in the fall with a Canadian MSRP of $61,995.
All-new 2015 Alfa Romeo 4C Coupe
The centrepiece of the Mercedes-AMG GT, the new 4.0-litre V8 biturbo, responds instantly with extreme power right from low revs and delivers outstanding performance.
The new Mercedes-AMG GT
The new BMW X4 is based on the technical blueprint of the BMW X3, but displays a sporting character very much its own and takes dynamics to another new level. That much is clear when you view the new model head-on. The look & feel is similar with BMW X6
Discover all-new 2014 BMW X4
The Alfa Romeo has become synonymous with style. Many people crave the look of an Alfa. However, this car is not a one trick pony. It performs as well as it looks. For many, they feel that they have to compromise style over speed. With an Alfa, this is simply not the case.
The Classic Alfa Romeo Montreal: Is it Worth the Hype?
Months of speculation ended today after Volvo Cars unveiled its all-new Volvo XC90, delivering on its promise to introduce a visually striking, premium quality seven-seat SUV with world leading safety features, new powertrain technologies, an unrivalled combination of power and fuel efficiency and a superlative interior finish.
World premiere: Please welcome the all-new Volvo XC90

Sport car of the month

Discover All-new Jaguar F-Type Coupe & R


All-new Jaguar F-Type Coupe & R

5-liter supercharged V8 engine and will reach 60 mph in 4.0 seconds, and a top speed of 186 mph (electronically limited)2. The F-TYPE S Coupe and F-TYPE Coupe are powered by 3-liter supercharged V6 engines in 380hp and 340hp forms respectively, giving 0-60 mph in 4.8/5.1 seconds and top speeds of 171/161 mph2.

The F-TYPE Coupe visual message is defined by three key ‘heart lines’, that visual message beginning with the formidable grille. It is from the twin ‘shark gill’ openings that sit either side of the grille that the essential first heart line – which mirrors the design of the F-TYPE Convertible – flows and begins to take shape. Running up through the headlamp, and accentuated by the LED ‘J blade’ signature running lamps, the line then arcs up over the front wheel arch before dropping elegantly as it runs through the door, washing out into the muscular rear haunch.

The second heart line begins at the rear edge of the door, swelling outwards and upwards to create a visually strong wheel arch, emphasizing the car’s rear-wheel drive layout, before dropping vertically through the tail lamp ...

Auto Mechanic Advice

Advice from experienced mechanics from several fields!

Auto Speed Market is a car blog with the latest automotive, F1 and car news. Auto Speed Market is trying to provide extra
information to car enthusiasts, will be presenting new cars and concepts, prices and statistics of the automotive world.
Auto Speed Market also offer tips for buying a new car or second hand vehicle.