{"id":112605,"date":"2021-02-12T19:19:42","date_gmt":"2021-02-12T19:19:42","guid":{"rendered":"https:\/\/precoinnews.com\/?p=112605"},"modified":"2021-02-12T19:19:42","modified_gmt":"2021-02-12T19:19:42","slug":"does-insurance-pay-off-a-totaled-car","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/economy\/does-insurance-pay-off-a-totaled-car\/","title":{"rendered":"Does insurance pay off a totaled car?"},"content":{"rendered":"

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Do you have the coverage you need to replace your vehicle if it\u2019s totaled? Here\u2019s a look at what car insurance covers.<\/span> (<\/span>iStock<\/span>)<\/span><\/p>\n

Nearly 7 million car crashes occur in the U.S. each year. Some of those accidents are worse than others, leaving drivers with a totaled vehicle, according to data from the Department of Transportation.<\/p>\n

Continue Reading Below<\/p>\n

Whether a car is considered totaled and how much car insurance will cover could depend on where you live and what type of policy you have. The guide below will cover everything you need to know if your car is totaled in an accident.<\/p>\n

If you're unsure if your current car insurance policy covers you for these types of incidents or if you'd like to switch providers to include more coverage, then online marketplace Credible can help. Credible can help you find quotes and compare insurance providers within minutes.<\/p>\n

What will insurance pay for a totaled car?<\/strong><\/h2>\n

A car is considered totaled when the cost of repair exceeds what the car is worth or the car is completely irreparable. Depending on who was at fault in the accident, your auto insurance or the other driver’s may cover the accident. A claims adjuster will determine how much the car is worth. Each state uses its own threshold for defining a car as totaled.<\/p>\n

For example, Texas law considers a car to be repairable at up to 100% of the car’s value. Meanwhile, the threshold in Iowa is 50%, meaning a $10,000 car would be totaled if it needed $5,000 of repair work. Most states fall in the 70-80% category.<\/p>\n

If your car is totaled and you’re responsible, your collision or comprehensive coverage should pay to replace it. Liability coverage is required in most states, whether you own your vehicle or not. If you’re leasing or financing a car, collision and comprehensive coverage are likely required as well.<\/p>\n

To ensure you’re covered and secure the lowest rates on car insurance, visit Credible to explore your auto insurance options.<\/p>\n

THIS IS THE BEST WAY TO LOWER YOUR CAR INSURANCE COSTS<\/strong><\/p>\n

Collision coverage kicks in if your car is damaged or destroyed in a crash involving another vehicle, with comprehensive coverage protecting you against other accidents, like a tree falling on your car.<\/p>\n

Without comprehensive and collision coverage, you could be paying to replace your totaled vehicle out of pocket.<\/p>\n

How is the value of a totaled car decided by an insurance agency?\u00a0<\/strong><\/h2>\n

Insurers define the worth of your car as its “actual cash value.” This is the amount you’ll be paid for your totaled vehicle.<\/p>\n

To determine your car’s actual cash value, the insurance company will consider its:<\/p>\n