After an accident, one of the first questions drivers ask is whether their vehicle can be repaired or if it’s considered a total loss. Knowing how insurance companies make that determination helps you understand what to expect during the claims process and how your coverage applies. At Rich Insurance Agency LLC, serving Kansas City, MO, we’re proud to offer the auto insurance coverage you need to stay safe and protected on and off the road.
What Is a Total Loss?
A vehicle is declared a total loss when the cost to repair it exceeds its actual cash value (ACV). This is the amount your car was worth before the accident. ACV includes factors like age, mileage, condition, and market demand.
If your car is deemed a total loss, your insurance company will typically pay the ACV, minus your deductible. This payout allows you to replace your vehicle with one of similar value, helping you get back on the road quickly.
When the Damage Is Repairable
If the repairs cost less than your car’s value, the vehicle is considered repairable. Your insurance will help cover the cost of parts and labor to restore it to its pre-accident condition. Depending on your coverage, you may choose your own repair shop or use one from your insurer’s preferred network.
Understanding Your Options
Knowing the difference between a total loss and repairable damage helps you make informed decisions after an accident. It also highlights the importance of maintaining comprehensive and collision coverage, which protect your vehicle from these types of losses.
Get the Coverage You Need
If you’ve recently experienced an accident or want to ensure your auto insurance provides the right protection, contact Rich Insurance Agency LLC, serving Kansas City, MO, to discuss your coverage needs.
