It’s never fun getting into a car accident, especially if you don’t have auto insurance. So many different things can happen that you have to worry about, was anyone hurt? Am I hurt? Is my car fixable? This can be extremely overwhelming.

But what exactly does it mean when your insurance company informs you that your car is totaled? Is this a good thing because you get a brand new car? Is it bad because you won’t get the full worth of your car given to you? There are so many questions surrounding this simple statement.

Auto insurance companies decide whether a car is totaled or not based on the cost of damages. If the cost of damages done to your vehicle is more expensive than the value of the car, then they will likely consider it totaled. Remember, insurance is a business and companies want to pay the least amount possible.

If your car is announced as totaled it is usually negative for most people. Your insurance company does not want to pay the expensive cost of getting your car back to its pre-accident condition, so it is often times cheaper for them to give you the amount of the lowest value they can find for your vehicle. This often times forces the person involved in the accident to downgrade on the type of car they purchase as a replacement. This is especially a bummer for those drivers whose vehicle is already nothing fancy.

Ok, so you found out that your car is totaled and your insurance provider makes an offer for how much they are willing to pay you for the loss of your car. You get the offer and can’t believe the small amount that they are willing to provide. What should you do? Well, you can hire an appraiser to come look at your vehicle and tell you how much your car is worth. Once this is done, then approach your insurance company with this information. If this doesn’t work, then you are left with the option of hiring a lawyer to defend your position. These two options are of course unfavorable, so this is why it’s important to have an auto insurance company that you are happy with.

If you aren’t happy with your current company, or are yet to be insured. Visit InsureMeOnline.com to get a free quote and find out how easy it is to get your car protected.

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