Auto Insurance Discuss

The car is a 12 year old Honda Accord. It has 180k miles. It has been well treated and is in good condition and I expected to get another 3 years out of it. A guy ran into me on the passenger side and dented the door and fender. The back closes a little funny now so there might be some minor frame damage, but it drives fine with no detectable problem even at highway speeds.

2 Questions:

1. The title now says that the car has been totaled, so it is not like I could sell it for much. Any prediction on how much it might be worth if I sell it?

2. What are the issues if I keep driving this car? Will insurance companies insure a totaled car? Are there liability issues if I get into an accident driving a totaled car? I can afford another car, it is just that I like this car and am feeling cheap.

Answer:

As for the damage, check with the adjuster about the actual estimate. It sounds like safety would not be an issue for driving it. When a car is considered totaled by an insurance company, it is because the amount of money needed to repair the vehicle surpasses a fraction of the value of the car. (Unless it is a rollover or damage that is obviously extensive) You could realistically have a vehicle that would be easy to fix but the value of the car isn’t that much. With yours being 12 years old and having very high mileage it would take very little to total it.

The worth of the vehicle, even repaired, would probably not be much at all. Financially, you may be better off parting it out. Check with your insurance company regarding their policy on insuring a totaled car. I’m sure there is a regulation about it but it could also vary from company to company.

Usually, when an insurance company totals a vehicle, they will issue you a check for the book value of it. You do have the option of buying it back for a certain percentage and then having it fixed. If you really like the car, it doesn’t sound like it would present a safety issue if you kept it. But get a couple of estimates on the damage to be sure. And also keep in mind that while the damage may appear to be minimal, once repairs are started and the damaged area is torn down, there is the possibility of further damage that wouldn’t be seen during an estimate.