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When you are in an auto accident and your car is damaged your car insurance company can do one of two things. They can pay for the repairs of the car or they can total the car and pay you the value of it. Your insurance company will decide to total your car based on the value of your car and the what it will cost to repair it.
If the repairs will cost more than the insurance company believes your car is worth they will total it and pay you what the determined value is. If you have had a minor accident they will pay to have the car repaired.
How much will I get if my car is totaled?
Your insurance policy, if you have the proper coverage, guarantees the car insurance company will pay you what your car is worth. How much money you will get depends on the age of your car, and the mileage on it.
What happens to my car?
The insurance company sends the car to a salvage yard where it can be sold to be used for parts.
Can I keep my car?
You will have to discuss this possibility with your insurance agent. Some companies will allow you to keep the vehicle. The settlement payment to you may be less than if you do not keep it. You will then be responsible to sell the car or to pay for the repairs yourself.
It is always a good idea to discuss the payment the insurance company is going to pay you with your agent. If you do not think it is a fair amount you must ask him what recourse you have to correct this. You may have to pay to have another appraisal done.
Before you decide whether or not to keep your damaged vehicle make sure you get some repair estimates. Usually after a lot of damage has been done to a car it is never quite the same as it was before the accident, no matter what repairs have been done. It may just be smarter to buy another car.