The insurance company appraiser has just informed you that your car could be a “total loss;” that it would cost more to fix than it was worth.

Your mind races with “I need this car to get to work. I can’t afford car payments. But there’s hardly any damage. My late Uncle Sal left me the Civic!”

Center City Collision understands; most auto body shops would rather fix your car than “total” it. Fixing wrecked cars and trucks is what they do…and they’re pretty darn good at it. Sometimes though, there’s no getting around the fact that it’s a “goner;’ that’s it’s not going to be repaired.

There are several factors looked at when an insurance company makes the decision to “total” a car. In previous posts, we talked about the estimate amount, hidden damage possibilities, the pre-accident value, the type of damages and the salvage value. Here are some of the other factors they consider:

• Time to repair. Chances are the insurance company will be paying for a rental car while the repairs are being done. If they determine that repairs will take X amount of weeks, they’ll have a good idea of what a rental car will cost. Just like the amount of the estimate, the rental expense, sometimes thousands of dollars, is part of the overall claim, a number they’re trying to keep as low as possible.

• Diminished value. If your car is repaired, Center City Collision is going to do a great job; don’t worry about that. No one will ever be able to tell that it was in an accident. The auto body shop can fix the damages but they can’t turn back the clock…it was in an accident. Even with perfect repairs, an accident might affect the resell value. A car that’s been in an accident might not be worth as much as one that hasn’t been. The difference in the market value of a previously damaged car versus an undamaged car is called “diminished value.” Knowing that months or even years after a car has been repaired that they might be faced with paying out a “diminished value” settlement, it’s sometimes less “painful” and more cost-effective to total the vehicle, eliminating the possibility of a “diminished value” claim.

• Owner’s desire to repair. When all of the above factors are considered and a vehicle is said to be a “borderline total,” the owner might have a vote on if the car is fixed or not. Claim reps are human too and they will take into consideration the vehicle owner’s desires in the case of a “borderline,” as long as the decision can also be justified up by the dollars. There is a limit though; remember that they have no sentimental attachment to your car and are not likely to authorize $5,000 of repairs on a $2,000 car even if your late Uncle Sal did want you to have it.

If you’re dealing with “it’s a total loss,” call Kevin or Jason at 513.631.2406 or stop and see them at Center City Collision. They’ve been around the block a time or two and could have some good insight and possible options for your vehicle that you hadn’t thought of. And Uncle Sal’s Civic? It might live to see another day…