When a car gets totaled, about 80% of that car can get recycled. So many vehicles go through the recycling process after getting totaled; it equates to enough steel to produce 13 million new cars.
If you’ve recently been in an accident, you may get the disappointing news that you now have a totaled car. What do you do now?
Keep reading to learn about your options.
Accept the Settlement Offer
An insurance company will consider a car totaled when the cost to repair the vehicle exceeds a certain percentage of the value of its value. This is generally when repairs are 51% of the car’s value. Check with your insurance company for their policy.
When this happens, the at-fault driver’s insurance company will offer you the cash value of the car. You can take this offer or negotiate for more. Once you accept, the insurance company has effectively bought the vehicle from you and gets a claim to the title.
You are now free of the car.
Keep the Car and Fix It
If you have an older car, it may not be worth filing a claim. You won’t be able to get enough value out of your current vehicle to be able to get a new one. In this case, you can keep the car and fix it yourself.
If you do file a claim in this situation, you risk ending up with a salvage title. This is a big red flag to anyone you try to sell the car to in the future.
Your other option is to buy the car back from the insurance company. You’ll have to prove the car is roadworthy, and you’ll have a rebuilt title.
Keep It and Don’t Fix It
Sometimes the damage to your car is more cosmetic and doesn’t affect the drivability or safety. Something as simple as a large scratch in the paint could be too expensive for the insurance company. The scratch does not influence the functioning of the car.
In this case, you can choose to keep your car and ignore the damage.
Sell It for Salvage
Your final option is to sell the car for salvage on your own. Instead of selling it to the insurance company, you can junk a car for cash today.
You could part the car out yourself. Or you can sell it to a company that will take care of that for you.
Let them know what kind of car you have. They’ll make an offer. If you accept, they’ll tow the car away and give you the cash.
What Will You Do with Your Totaled Car?
Now that you know your options, which one sounds like the best solution for your totaled car? If the damage is cosmetic, then you could get it fixed yourself or just ignore it.
If the damage is more serious, you could still pay for the repair yourself, accept the insurance company offer, or sell the car for cash on your own.
Check out the car repair section of our blog if your car isn’t totaled and just need some fixing.