My wife had an accident with our 2011 hyundai sonata se,the car is only three months old and has 8000 miles on it,my wife was taken straight to th ER after the accident had strained her neck and shoulder,still feels some pain,the accident was the other drivers fault so their insurance is picking up the bill for a rental and repair,the estimate to repair the car is $15.300 wich could possibly go up by an extra $2k-$4k,invoice price of the car is $22.500,will my car be a total loss??
It sounds very close. Various companys have different levels for a total. 80% on a not terribly expensive car could well be a total.
Good luck
Keep in mind that, the moment you drive a new car off the lot, the value of it drops. Depreciation on a new car is hell. (And, 8K miles in 3 months? Wow.)
Agreed that it may well be a judgment call on the part of your insurance adjuster.
There are some auto insurance policies which have specific coverage to handle situations like this, with new / nearly new cars. Unfortunately, they’re often expensive riders to add, and so, many people don’t get them. After all, what are the odds that your brand-new car is gonna get totaled? Without something like that, if your insurance company does total the car, odds are that the pay-out won’t be the amount of a brand-new Sonata, which is gonna hurt a lot, if you have an outstanding auto loan on it.
Hopefully, your wife will be OK.
I’m glad your wife came out somewhat OK and hope she makes a full recovery.
Specifically, how was your car damaged? What body panels were hit, from what direction and at what approximate speed? It makes a huge difference in the success of the repair.
It wouldn’t surprise me if your insurance company does decide to total out the car. It is their decision to make though. You can take the issue up with your agent and attempt to influence them if you want. If I was in your situation, I would probably (gently) push to have the car totaled.
There are two factors to consider here…
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Can the car be repaired successfully? Will it be safe to drive after the repair?
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If the car is totaled, how far “under water” will the OP be on his auto loan? If he paid $21,000 for it, depending on how much he had to finance, the “total” check will probably be several thousand dollars less than the outstanding balance on his loan.
I agree completely that these are the issues. The challenge is in working with the agent to find the best balance.
From my perspective, I don’t think I would ever trust a car that had been severely damaged in a collision. I’ve owned them before and my experience is that they are more trouble than they’re worth. The potential for funky tire wear, alignment issues and unpredictable result in a second collision all combine to make me want to get rid of the car before it becomes another headache. If my ‘totaled’ check isn’t sufficient to cover my outstanding loan balance then that’s my bad luck and my problem.
Say the insurance doesn’t total the car, pays for the repair and returns to car to me. Even the best shop can’t completely repair some damage and a lousy shop can render a car acutely unsafe to drive. It’s entirely possible the car will never be ‘right’ again. At that point my only morally correct option (short of taking the car to the crusher myself) is to sell the car on the open market with full disclosure of the damage in the collision and the results of the repair. I’m still going to lose money on the deal and I’m keeping a quirky and potentially dangerous on the road.
Maybe I’m just risk averse, paranoid or unreasonable but from my perspective, the simplest, best chance for my future happiness is to hope the car is totaled. YMMV
I would venture to say that its pretty much totaled since the amount to repair isaround than 75% the value of the car when new. YMMV depending on who your insurance is through. Now my one data point of referance.
I was rear ended in a car that was about 10 months old, paid $32K for it and they did $13.5K worth of damage. So I thought great, I didn’t get hurt and it’s pretty much hosed; but nooooo. State Farm told me the car (mind you it was 10 months old and had >10K miles on it) was still worth $28K by thier estimate and that since the cost to repair was less than half the value of the vehicle that I had no choice but to have it repaired.
I tried to explain that the frame was bent and the car would not be the same; didn't matter because the estimate given is the cost to get the car back in driveable condition; not in like new condition. That and if I wanted to sue for my loss in resale value I was on my own, they would not assisance me.
Dosen’t matter what you owe either; insurance companies don’t care about that. And any esitmate is taken by them to mean that the car will be brought back to drivable condition. Of course not all repairs shops do a good job.
Just going by the numbers I’d say that yours is totalled.
it was a head on at about 45 mph,the car hit the front left side,and damage the hood ,quarter panels on each side radiator,a/c condenser,left and right side of frame rail bent on each side of engine compartment also possible damage to engine/suspension cradle.,this is the bigger stuff…thanx
the entire front end is basically push in and over to the right…
That type of collision troubles me much less than a side impact ‘T-bone’ type of collision. The car took the damage on what should be the strongest and best engineered area. A good shop should be able to either repair it to near new condition or know at a glance that the car can’t realistically be repaired.
If you do get your car repaired and returned to you then the first thing you should do it to take it to an independent alignment shop and have them check the geometry of all four wheels for alignment and tracking. I’m serious, drive straight from the body shop to the alignment shop and get it checked that day. If the repair was successful then the wheels will line up and the car will track in a straight line. If the alignment shop can’t get it to line up to proper factory specs then report it to your insurance company to challenge the safety and effectiveness of the repairs.
You probably don’t want a car that’s had that much repair work. You also have to see how it will affect the original warranty. Will future repairs be covered, or will the dealer blame the accident or the repair shop. And everybody has access to Carfax now, the resale value of the car is lowered because of all the repair work.
You should push the insurance company for as much compensation for the totalled car as possible, and get more money for the pain and suffering of your wife.
i forgot to mention that i have gap coverage,soi should be ok if the car is totalled…
There are significant safety concerns with a car that has been that badly damaged - if the frame was compromised in any way, it won’t provide adequate protection in the case of another accident down the line.
http://framefacts.com/LearnMore.aspx
One of the reasons we knew Typo Knig’s old car was totalled was that he was hit from behind, and pushed into the car in front, by a car travelling far to fast on an exit ramp. The middle of the roof of the car had a bend in it.
Personally, with that much damage, I’d tend to refuse to take the car back.
If the other driver is held at fault, you have some wiggle room with the insurer. They want you guys to sign paperwork saying you’ll go away now. You can, as a condition of doing so, insist on full reimbursement for the replacement value of your car. Obviously you won’t want to do anything like that until the time your wife is completely over this; it may be worth having a legal consult in any case.
With our accident, we weren’t trying to gouge the other guy’s insurer; we documented lost time from work, and lost property (we couldn’t get everything out of the trunk, there was a carseat, etc.). We estimated this to be about 800 bucks overall; they said “how about 1200 and you go away”. Plus of course the salvage value for the car, which was enough for a substantial down payment on a replacement. We took the money and went away.
I thought insurance companies were using 50% as the break point. Not that the vehicle would not eventually be repaired, but it would be by a salvage title person. I think I would push the company in this direction.
Reconstructing the damage must result in something less than new quality. It will take a long time to repair. Crash parts may not be available for months. Meanwhile, the hulk will sit rotting in some lot. Parts rust and seals harden and develop leaks.
Do the best you can with the adjuster. You may lose some cash in getting a new vehicle, but within reason it will be worth it.
Based on the OP #1 I would total the car if the claim were on my desk. Lots of damage and a fairly new car(I’d do it as a mercy kill if nothing else–you’ll always wonder if problems are related to the accident). If you’re pursuing through the other driver’s insurance you can consider presenting a diminished value claim. If you don’t live in Georgia you might not have much luck, but with a current-year car your chances are better. You’d have to PROVE the diminished value which is all but impossible–“Everyone knows…” is not going to be an effective argument. What DOES work, however, is if the estimate indicates frame damage. See, most (if not all) lenders won’t lend money for a car if Carfax indicates frame repair. Therefore the car must be purchased with cash, which is problematic for most car-buyers. This would result in a significantly reduced market for the car and presto less demand = less value.
Nope. Unless there are structural or parts availability problems (and for a 2011 there could be) total loss is a function of cost to repair & salvage value vs. market value. Plus a handful of intangibles. % is sometimes used as a red flag indicating it’s time to take a look at the repair vs. total option, but it’s not a sure kill.
Why? (hint: wrong)
Parts will likely be an issue and waiting for them to become available will probably delay the claim, but not long enough for seals to rot and non-damaged parts to rust–we’re not talking years here. 
In this case, you might still be able to sue the other drive for your unreimbursed losses, since you say the accident was his fault. It’s up to you whether this would be worth the effort.
Wrongarino. The insurance company owes you what their insured would be legally liable for. Legally, you are owed the market value of your damaged property.
The other guy is not responsible for the amount your car depreciated between the time you bought it and when he wrecked it. The other guy is not responsible for the price you paid for the car or the results of the finance contract you entered into when you bought it. If you paid less than market value for the car, he still owes you market value. Pain/suffering/inconvenience is not a compensable loss in property damage claims.
Three things to consider: Repair cost vs vehicle value less salvage value.
In you case it appears the vehicle is totaled because you face a potential repair cost equaling the value of the vehicle because you car has probably depreciated by about 10% because it’s used so let’s say the vehicle is worth $19,800.
The vehicle, even though damaged, still has a salvage value (parts, or even being rebuilt using cheap labor/parts, etc) and salvage dealers routinely purchase damaged vehicles from insurance companies and once the insurance company pays you the value of your car, they own it and will sell it for salvage.
So, the insurance company will conceivably pay you the value of you car at about $19,800 which you will receive once you turn over the title and they will sell the salvage and probably end up with a net payout of less than the vehicle value or the potential $19K repair cost.
Insurance companies usually offer the option to a claimant to accept the above deal and retain the damaged vehicle.
Industry standards for totaling a vehicle range from 50-80%. It’s no standard really. Some people would rather have their vehicle repaired at 80% rather than lose money on the adjusted value reimbursement. I personally don’t feel a heavily repaired vehicle is equivalent. A straightened body is probably not as strong. The paint process is not the same as the factory. Vehicles are often left outside without being properly protected from the weather. I view this at collision shops daily.
Here’s the link to an Edmund’s article citing the 51-80%.
From the same article (2 paragraphs up):
There is a formula/logical methodology for calculating total losses when the damage doesn’t make a reasonable person say, “Hoo-wee! That car dun got SMACKED!” A lot of the factors tend to be pretty fixed: Rental’s going to run about $15-$30/day of repair, estimate supplements average about +20% of the original estimate, salvage value depends on so many factors you pretty much have to consult a salvage vendor, etc. In a significant number of cases, the expenses that go along with a repair (diminished value, rental, estimate increases) make it more cost-effective to total the car when the estimate approaches 70% of its value. But that’s not rock solid. Any time I’ve heard anyone (who totals cars for a living) use a %, it’s been in the sense of, “Hold up, looks like there’s a fair bit of damage, let me run some numbers…ok, as long as the estimate stays below $XXXX we can fix it.”
The myth, which is perpetuated by the writer of the Edmunds article and essentially debunked by the insurance adjuster he cites (and then condecendingly responds to with, “Huh?” because he reckons his readers aren’t advanced enough to follow along) is that insurance companies cling blindly to a fixed %age of market value when determining whether or not a car should be repaired. In short, the % argument is only used by people who can’t be arsed to believe some actual thought goes into totaling a car.
Aw shit, I’m frothing at the mouth now…