Car Insurance Companies in Elyria OH sometimes determine that a vehicle is a total loss after an accident. People commonly refer to this as the vehicle being “totaled,” which essentially means that repairing the car would cost more than the total value of the vehicle. The situation is actually more complex.
Insurance adjusters use standard ratios to decide at which point a car is not worth being repaired. Some cases are obvious, such as when the vehicle is damaged so badly it would not even be possible to fix it. In other cases, the damage is not that dramatic, but the vehicle may be very old with high mileage. That can make its actual value quite low. Insurance companies generally do not want to pay $700 to repair a car that is technically worth only $800. The insurer may have a standard guideline in which repairs will be paid for up to a certain percentage of the vehicle’s value but not beyond that.
One insurer may not use the same calculator of vehicle value that another insurer does. A policyholder also can be misled if trying to rely on one of the value calculators most commonly used by individuals, as the prices set forth there tend to be unreasonably high in the eyes of insurance companies.
Car Insurance Companies in Elyria OH usually assume ownership of a totaled vehicle and reimburse the policyholder for the actual value. Depending on the company and the details of the situation, the vehicle owner may be able to keep the car and turn down the payment for replacement value. Sometimes this makes sense, such as when the owner knows he or she can’t buy a similar car for this one’s actual monetary value. The car may still be in good working order even if it has substantial body damage. The owner may be willing to pay for a certain functional repair out of his or her own pocket and continue to drive it with a damaged auto body.
For more information on insurance payments for seriously damaged vehicles, contact an agency such as . An independent agency works with a variety of insurers and can provide information on guidelines different companies follow and also on state laws regarding these situations. You can also visit them on Facebook for more information.
