 | Richard Smith has been in the Auto Body Industry for 26 years. He is ASE Certified Master Collision Tech, an I-Car Platinum Tech, and an I-Car Instructor. He and His wife own and operate Sharp's Auto Body & Collision Inc. located at 202 North Elm St. in Pittsburg, Kansas. He is a father of 5 children, Ex Military E-6 Staff SGT. and is active in his home Church. The one thing he enjoys doing is educating the public about the safety and proper repair of automobiles, no matter if it is a vehicle that has been in a collision, a small dent, or a complete restoration. The shop is always equipped with a skilled professional to handle your auto needs. |
Automotive Service & Repair
2012-11-19 11:26:11
Can you keep your car after being eemed totaled?
Q- My 10-year-old car was totaled by the insurance company but is still drivable. What factors deem a car totaled? Can you keep it after it is totaled? If so, does your insurance go up?
A- Around five million cars are totaled yearly in the United States. Of those, some of them remain drivable, as in your case. One of the biggest misconceptions about cars being totaled is that they are totaled because they become unable to be driven safely. This is not always the case.
The determining factor in whether or not a car is deemed totaled is the expected cost to fix the damage. If the cost to fix it exceeds the value of the vehicle, then it is considered totaled. So, an older car worth two-grand may be considered totaled with a small fender bender while a new car could sustain more damage without reaching that threshold.
Naturally, in most cases owners are happy to give up the car since it has sustained major damage. In other cases, owners look to keep the vehicle because fixing it is more cost effective than purchasing a new or newer vehicle.
In this case, the owner must let the insurance company know of their intent early in the process. Then they would take out the cost of the deductible and the money you would receive at salvage and give you the remaining of the car's value.
Depending on the situation, you may have to go to the DMV and change the salvage status of the vehicle to "rebuilt salvage" status.
I would suggest you get the vehicle thoroughly inspected for any unseen damage before driving the vehicle. An inspection may also help you in your decision on whether or not to pursue keeping the vehicle.
Also, I would check with the DMV for any fees you might incur in the process. After adding up the cost of fixing it and the cost of keeping it, it may or may not be worthwhile, depending on your reasons for wanting to keep it, the age of the vehicle, and all other contributing factors.
