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This may depend on the insurance company. Some insurers writes off a car when the damage estimate is 2/3 the value of the car. The reaso they do this is that the actual repair costs usually are higher then the first estimate.
ANSWER
Actually, it is often a question of state law. Many states require that an insurance company declare a vehicle to be a total loss when the cost of repair exceeds a given percentage of the actual cash value of the car. The actual cash value is approximately the market value of a car of like, kind and quality as the subject vehicle, immediately before the collision. The reason for this is primarily the fact that the damaged vehicle is probably no longer safe to drive.
In return for paying the "total loss" value of the car, the insurer gets to keep the salvage, and thereafter usually sells it to recoup some of its payment. In other cases, the insured opts to keep the salvage, perhaps for parts, or perhaps to rebuild the car. In that event, the insurer deducts from the payment to the insured the anticipated salvage value.
If the car is rebuilt, it has to be retitled, this time with a "salvage title". This protects any later buyer by notifying him/her that the vehicle was at one time in a serious collision.
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∙ 11y ago
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What is an insurance recovery car?
Stolen car that claim was paid off by the insurance company. The car was later recovered. Because the claim was already paid the car is owned by the insurance company and they will typically sale these at auction.
Do you have to pay off the car loan if you have totaled the car?
Yes, if your insurance company will not pay it all.
What happens if an insurance company declares your car written off?
They cut you a check and keep your car.
Your friend sold you his car take over paymentsHe took the car off his insurance you insured the car and then totaled it but you are not on the title Will your insurance company pay for it?
As long as you have the title that he signed off of it and you signed on and you have insurance on the vehicle it will be covered.
Will your driver's license be taken away if you write off your dad's car on which you have no insurance?
NO
Who owns the car after it s been charged off?
I assume your question refers to a car that was financed and was involved in an accident an it was a total lost. The insurance company pays the bank, the car belongs to the insurance company.
Your car has been written off by your insurance company but you have decided to buy the car back and repair it however you will still owe 2000 pounds to the finance company where will you stand?
Your car has been written off by your insurance company but you have decided to buy the car back and repair it however you will still owe 2000 pounds to the finance company where will you stand?
If your car is a write off do you get back any of your insurance premium you have paid?
some of it i think
If a car was stolen and found in bad condition do you have to accept the vehicle back or can you reject it and have the insurance company pay it off?
I am sure that theft insurance functions just like collision. The insurance company has the option of repairing the car or declaring it "totalled" in which case they give you fair market value for the car (they do not have to pay it off)
If the bank's insurance pays the car off as a bad debt and sells the car at auction will the insurance company come after you for the difference on the loan?
Yes, in many states they will.
What are car insurance auctions?
If you wreck your vehicle, the insurance company pays you off and you give them the title for the vehicle. The insurance company then turns around and sends the vehicle to an auction (usually for dealers and wholesalers only) and sell it. Most of the time a salvage company will buy the car for parts and the insurance company can recoup some of their money.
Does a lender have insurance to help write a car off when they can't find it to repo it?
They might. The liability of the person who has hid the car will be the same.
