If the other party's insurance says that your car is totaled can it be repaired?

Answer 1

Yes. Here's what will happen: The insurance company will still total your car, but since you own the vehicle, you have the option of retaining the salvage. You can then take the settlement money and repair your car with it. If you have a lien on the car, however, the carrier might send some or all of the total loss payment to your lienholder.

Of course, if you car is a total loss, it's unlikely that the settlement amount will cover all of the repairs. That's why it's considered a total loss. In every state, once a vehicle's repairs reach a certain percentage of the vehicle's actual-cash-value, it's considered a total loss. The actual-cash-value is all an insurance carrier would owe you.

Your best bet? Review the insurance company's total loss offer very carefully. Make sure their valuation of your vehicle considers all the options, the correct mileage, and any refurbishments (new engine, transmission, etc.) that you've had done in the past year or so.

Don't count on getting the retail book value for your car. That value is based on the exaggerated price a dealer sticks on a vehicle, and as we all know, only a very misinformed person would walk onto a dealer lot and pay full price for a vehicle (specialty vehicles notwithstanding).

Also, once a vehicle is a total loss, your own carrier will likely remove the full coverage on it. You'd have to have it repaired and inspected -- sometimes by the state -- to have it considered roadworthy again and to have your own carrier put the full coverage back on. And, depending on the valuation service that the other carrier uses to determine the value of your car, it's likely your car will always be considered a total loss because it's marked as a total loss. This can affect is value if, say, you have another accident in the future and total the vehicle again (because, let's face it, would you pay the same amount for a vehicle that had been deemed a total loss in the past?). Your state might even require you to obtain a salvage title on your car, which is no fun when you're trying to sell it.

My recommendation: Review the carrier's total loss offer as I mentioned, and go get a new car. You'll be glad you did.