Getting into a bad accident is stressful enough without having to wonder what happens to your car afterward. Many drivers don’t fully understand what actually causes a vehicle to be declared a total loss, or what that means for their wallet. Abney Insurance helps drivers throughout Winter Garden, FL, understand their auto insurance coverage before they ever need to use it.
How the Total Loss Calculation Works
When your car is damaged, the insurance company compares the total repair cost to the vehicle’s actual cash value. If that cost exceeds a certain percentage of the car’s value, the insurer will declare it a total loss. In Florida, that threshold is 80%, though it varies more broadly by state, generally falling between 70% and 80%. A car that looks fixable on the outside might not pass that test.
It’s Not Always About a Crash
Many people assume total loss only happens after a major collision, but that’s far from the only cause. Flooding, fire, and hail damage can all push a vehicle into that category. The car’s age and condition before the loss also play a role; an older, higher-mileage vehicle doesn’t require nearly as much damage to cross that threshold.
Make Sure You’re Covered the Right Way
If your car is declared a total loss, your insurer pays out the actual cash value at the time of the loss. If you still owe money on the vehicle, gap coverage can cover the difference, so you’re not stuck paying off a car you no longer have. Getting the right auto insurance policy in place before something happens is what really matters. Abney Insurance serves drivers throughout Winter Garden, FL, and is ready to help.
